High on employee morale

Reduced headcounts, salary freezes and rough business sentiment: if you thought the gruelling work environment in India would impact employee confidence for long, think again.

A majority of employed executives in India are either extremely satisfied or satisfied in their current position or at least that’s what a Korn/Ferry Institute survey reveals. This is in sharp contrast to the US where nearly half of employed executives are either somewhat or very dissatisfied with their current position. The International Executive survey was administered to CXOs globally during May-June 2009.

According to Joy Nandi, Client Partner (Global Technology Market), Korn/Ferry International, the poll was conducted to gauge the impact of an 18-month downturn. “The high morale in India is indicative of the low intensity of downturn. Senior executives are seemingly more confident that they have steered the company well in rough economy,” he says.

Does it mean things are looking up across India Inc.? “Yes. The first quarter of the current financial year has been good after two rough quarters,” says Tapan Mitra, Chief of Human Resources at Apollo Tyres.

The company has paid corporate performance bonus at 110 per cent for the April-June quarter of the current financial year whereas no bonus was paid in the last two quarters of last year. “Employee morale is at a high after a long gap across all levels. There is growth with auto sector doing well and new plans such as our Greenfield plant in Chennai are taking shape,” says Mitra.

According to Sonal Agrawal, CEO of executive search firm Accord Group India, most Indian companies have also been quick to rationalise costs and focus on productivity resulting in better-than-expected first quarter results, particularly in auto, cement and consumer durables.

“India Inc. certainly seems more optimistic compared to the US and Europe. While the euphoria of 2007 has obviously died down, green shoots abound and the relatively high rate of growth in the Indian economy, compared to the western world, is adding to the positivity,” she says.

Q1. Which best describes employee morale within your company?

USA

• Outstanding: 10%
• Good: 33%
• Fair: 23%
• Poor: 12%
• I am currently unemployed: 22%

INDIA

• Outstanding: 23%
• Good: 48%
• Fair: 19%
• Poor: 0%
• I am currently unemployed: 10%

Q2. How satisfied are you with your current position?

USA

• Extremely satisfied: 6%
• Satisfied: 31%
• Somewhat dissatisfied: 25%
• Very dissatisfied: 8%
• I am currently unemployed: 30%

INDIA

• Extremely satisfied: 11%
• Satisfied: 36%
• Somewhat dissatisfied: 33%
• Very dissatisfied: 7%
• I am currently unemployed: 13%

Q3. Do you aspire to have your boss’s job?

USA

• Yes: 67%
• No: 33%

INDIA

• Yes: 85%
• No: 15%