Best Companies to Work For, India By Business Today and PeopleStrong in association with Naukri.com

Transcription

1 Best Companies to Work For, India By Business Today and PeopleStrong in association with Naukri.com

2 Contents 1. Methodology Survey approach and respondents profile Sample Size and Representation Ranking The Sampled Respondents Profile Organizational Spread Geographic Spread Age, Experience and Education Type of Households and Income Levels Industry Sectors Kind of Companies represented Ranking of Companies The Overall Ranking (across all sectors) Ranking on each of the 6 parameters (across all sectors) Variation of Rankings by regions Variation of Rankings by different age groups Variation of Rankings by type of companies Variation of Rankings by different industry segments Ranking by BPO Sector Respondents Ranking by BFSI Sector Respondents Ranking by Core Sector Respondents Ranking by Engineering and Automotive Sector Respondents Ranking by Hospitality Sector Respondents Ranking by Manufacturing Sector Respondents Ranking by Pharma and Healthcare Sector Respondents Ranking by Software and IT Sector Respondents Ranking by Telecom and Allied Sector Respondents Ranking by Others and Diversified Sector Respondents Ranking of Companies within Sector Sector Business Process Outsourcing (BPO/ KPO/ ITES) Sector BFSI (Banking, Financial Services, Insurance) Sector Core Sector (Oil & Gas/ Power/ Steel/ Minerals) Sector Engineering and Automotive Sector Hospitality (Includes Aviation, Tours & Travels, Hotels) Sector Other Manufacturing (FMCG, Durables, Other non-engineering) Sector Pharma and Healthcare Sector Software and IT Sector Telecom and Allied Sector Others and Diversified Non Ranking Parameters What makes a company a fantastic place to work in? Rating of own company on the five factors identified What makes a company attractive? What upsets employees strongly enough to start contemplating change? Satisfaction in current job role Adherence to Ethical Values Relationship with the immediate boss/ supervisor Satisfaction level with certain key issues at work

3 1. Methodology "The Best Companies to work for" is an annual survey conducted by Business Today and PeopleStrong HR Services that aims to understand the Perceptions and Aspiration of India's Talent across industries. It gives a great insight into how Industry at large and in specific verticals can align their Employer Brands to how the workforce of India is aspiring and thinking. "Best Companies to Work for in India", as a feature, has been institutionalized over the past decade by Business Today. The survey aims to provide a feedback to the companies on what the employee marketplace thinks about various companies, what factors are considered important, what factors attract people, what factors demoralize people, and other inputs in an unbiased representative manner. The cornerstones of this research are the respondents who work in different types of organizations. For the last 11 years, we have sought responses and inputs from the workforce community directly through a large database of employees across diverse spectrum of vintage, age, industry, location and job grades. This survey primarily aimed to capture the Aspiration and Perception across key variables of Organizational interface with an employee. With this year, we induct a platform for a reality check through HR Metrics with the Employers as well. To include the "The Employers' Perspective", key Metrics of HR across the employee influencing variables have been included. These metrics complement the variables that an Employee experiences and provides the inputs on the key influencers for the employee Perceptions and Aspirations. Like last year, Business Today and PeopleStrong decided to continue with the methodology of inviting employees of any and all kinds of companies to participate in an open online survey in association with Naukri.com. This allows all kinds of salaried employees from different kinds of companies to participate and express their views and make the survey participation wider and more representing. The survey was conducted using an internet based self-filling questionnaire, where the questionnaire was sent to about 4 million people registered on the Naukri.com platform. To cross-check the authenticity of the respondents and to ensure that quality of responses were of acceptable standards, validation checks were done by Naukri team and PeopleStrong technology team by calling back a certain proportion of the respondents randomly. The PeopleStrong Study Team then constructed a ranking of companies and an analysis of various aspects that go into making a company a great place to work in. This study does not report on specific aspects of any company (positive or negative). The Best Companies to Work For rankings are done across industries and within specific industry/ economic sectors. The study further reports on the respondent employees satisfaction and aspirations, but at a sector level and at the overall level only, not at a company level. Differences of views across different geographies and demographic segments are also presented, highlighting the differences between various segments Survey approach and respondents profile Internet was chosen as the medium of survey to get the highest bang for the buck deeper reach at comparable costs. We leveraged the rich database of Naukri.com to reach out to approximately 4 million people. Further, online research is known to get more honest opinions, though there is a limitation that the questionnaire needs to be short and easy to understand (which in a way leads to better responses and therefore better quality of data collection). Online surveys are known to often achieve better randomness in collection of responses than land surveys. To conduct this survey, PeopleStrong used Naukri.com s online panels (of over 4 million Indian respondents), which permitted us to target the survey to only the relevant audience. Mailers and other forms of online communications were sent to the respondents through Naukri. About 20,000 of these potential respondents (0.5%) came to the survey page. Of these, 6,320 respondents (32%) actually filled out the questionnaire. After doing thorough scrutiny and cleaning of these respondent s questionnaires, we got a final reportable sample of 6,310. 2

4 Data authenticity was ensured in two ways a) the questionnaire design itself had built in verifications which rejected responses with contradictory/ incomplete information and b) a verification back check of about 10% of the accepted responses. These 6,310 employee respondents, when profiled, were found to be highly representative of the great Indian workplace as depicted in the diagram below: Demographic Sub-categories Percentage (%) City Type 5 Metro Cities 38 City Type 5 Mini Metros 18 City Type Other Cities 44 Region North 27 Region South 29 Region East 14 Region West 20 Region Central 9 Gender Male 92 Gender Female 8 Age 24 years or less 16 Age yrs 40 Age yrs 18 Age yrs 15 Age yrs 8 Age yrs 3 Annual Income Rs. 400,000 and below 61 Annual Income Rs Annual Income Rs Annual Income Rs and above 9 Household type Single income 78 Household type Double Income 16 Household type More than 2 earning members 6 Educational Qualifications Below graduate 4 Educational Qualifications Diploma holder 12 Educational Qualifications Graduate 43 Educational Qualifications Post graduate 38 Educational Qualifications Others 3 Experience at work 1-2 years 16 Experience at work 3-4 years 21 Experience at work 5-7 years 23 Experience at work 8-15 years 21 Experience at work More than 15 years 19 Company Type Public Sector 10 Company Type MNCs 34 Company Type Indian private sector 40 Company Type Others 15 Industry Engineering and Automotive 11 Industry BPO, KPO and ITeS 5 Industry Pharma and Healthcare 7 Industry Telecom 5 3

5 Industry Manufacturing 6 Banking, financial services and Industry insurance 9 Industry Core sector- Oil, Gas and Power 6 Industry Hospitality 2 Industry Software and IT 13 Industry Others and Diversified 35 Overall, the respondent base this year is relatively younger and more Indian companies - possibly a result of a relatively more spread out (non-metro) geographical base. It appears that due to our accessing larger survey panels, which had a more geographically spread out respondent base, despite a similar sample size compared to the last year (6176 respondents) we have been able to achieve a better representation of the Indian urban corporate employee base this year Sample Size and Representation An often misunderstood factor is the sample requirements for assessing the representative-ness of a sample. The popular perception is that it must be a certain proportion of the population it seeks to represent. The reality is somewhat different. The most important factor is the randomness of a sample. A sample of 10,000 respondents from three companies is highly biased and not representative at all. On the other hand, a sample of just 2,000 respondents from 400 different companies is highly representative. Randomness is thus the first and the most important criteria. Once randomness is achieved, the sample must still have two important caveats The confidence level and the confidence interval (expected error of the estimate). The confidence interval (standard error) is the expected range of error. For example, if you use a confidence interval of 5 and 53% percent of your sample picks an answer you can be "sure" that if you had asked the question of the entire relevant population between 48% (53-5) and 58% (53+5) would have picked that answer. The confidence level tells you how sure you can be. It is expressed as a percentage and represents how often the true percentage of the population who would pick an answer lies within the confidence interval. The 95% confidence level means you can be 95% certain; the 99% confidence level means you can be 99% certain. Most researchers use the 95% confidence level. The graphs below depict, how, depending on the confidence level and the confidence interval (standard error), the sample requirements can vary. A few things that the above diagram illustrates: 1. The sample requirement flattens as soon as you reach a certain population. In general, beyond a population of 100,000, as long as the sample is randomly selected, the sample requirement does not increase further. 4

6 2. The higher the confidence level required, and the lower the standard error desired, the higher will be the sample requirements. Most surveys accept that beyond 95% confidence level and 5% standard error, the trade-off between the high cost of survey and the precision enhancement are not worthwhile. For instance, the sample required for 95% confidence level and 5% standard error for a population of 100,000 is around 660. As one increases the precision to 99% confidence level and 2.5% standard error, the sample requirement jumps to 2,647 a four-fold increase in the required sample size. Such precision or higher is usually recommended in research of rare diseases or similar such issues. For this survey, any segment with a sample size of around 600 random selections has an outstanding representation. Segments with sample size of 200 random selections are also good samples because they give us a confidence level of 90% with a 5% standard error. Even a segment of 100 random selections give us a confidence level of 90% with an 8% standard error. We recommend that we do not report for any segment where the sample is less than 150 with 90% confidence level with 6% confidence interval Ranking We have asked the respondents to select and rank the 5 companies which in their opinion are the best companies to work in. This exercise would define the employee s aspirations. Respondents rank companies on various parameters. Rank 1 has higher weight as compared to rank 2, and so on. Also, the gap between rank 1 and rank 2 is considered to be more significant than the gap between rank 2 and rank 3, and so on. This is because the top ranks stand out and beyond a few ranks all other ranks are deemed to be also ran, in terms of perceptions. This difference is implemented by using 90% rule, wherein rank 2 gets 90% of the weight as rank 1, and rank 3 gets 90% of the weight given to rank 2, and so on. Therefore, if a respondent is selecting 5 companies (A, B, C, D and E) as ranks 1, 2, 3, 4 and 5 from the universe, the weighted score for each of these companies, will be as follows (with the 90% rule): A B C D E Once rank scores were computed, the top ranked company was given an index score of 100 and the scores obtained by the other companies were indexed to the score of the top ranked company. We have collected data on 7 HR metrics from the top 10 companies of each sector. These companies are identified from our analysis in phase 1. The metrics are as follow: i. Early Attrition= employees leaving in initial 6 months/total employees ii. Training man-hours = total training man-hours/total available man-hours iii. Training penetration = total employees attending training/ total employees iv. Cost per hire v. Average TAT vi. Promotion percentage = total number of promotions/total eligible employees for promotion vii. Internal growth and development = total positions closed through internal job posting/total positions Some additional metrics are: viii. Total HR headcount ix. Total employee headcount x. Absence rate (%age) The analysis of each of the metric is done on the basis of its difference from the best of the lot. The best performing companies on the parameters is given 1 and the worst is given 5. After collecting the data points for a particular metric for the top ten companies of a particular sector, we identified the best and the worst performer. We took the best one as our TARGET and used the formula of (maxmin)/5 to come up with the intervals. Thereafter, we divided the 10 data points into 5 buckets with a 5

7 common difference of the derived value. The companies lying in the best bracket gets 1 and the worst would get 5 and so on. This exercise was repeated for all the metrics. At the end we got the grades for all the 10 companies across all HR metrics. Given that all the metrics have equal weightage, we took out the average of each of the each company on the metrics. All companies got a cumulative score. These score were arranged in ascending order and given ranks from Overall results We got a rank from 1-10 on the basis of employee survey analysis and another set of ranks from 1-10 from the metric analysis. Given that employee survey has 95% and metrics have 5% weightage, we weighed both the ranks in this proportion to come up with the final ranks. 6

8 2. The Sampled Respondents Profile The survey was conducted during the period of 15 th March- 24 th April, 2013, and was open for about 40 days. The total number of respondents surveyed was 6,310 of which 8% were women. The objective of the sampling was to get a representative randomized sample, which would be as widely spread as possible. The objective was to have adequate representation of various geographies, a large number of companies, at least 7-8 key industry sectors, various functions, age groups and experience on the job. For all the important segments under consideration the target was to have 90% confidence level and 6% standard error. Accordingly, we recommend not reporting the findings of any segment where the sample representation is of less than 150 respondents Organizational Spread The reported sample respondents in this year s survey came from over 5070 different companies (compared to 4436 companies last year). This is truly well spread. There were only 2 companies with more than 20 respondents and only 11 with more than Geographic Spread The survey respondents were spread over 300 cities and towns of India. The five major metros (Mumbai, Chennai, Bangalore, Kolkata and Delhi) accounted for 38%, the 5 mini metros (Hyderabad, Pune, Coimbatore, Chandigarh and Ahmedabad) accounted for 18%, and the other cities accounted for 44% of the respondents. Region wise, North, South, and West accounted for 27%, 29% and 20% of the respondents. The East accounted for 14% and Central accounted for 9% of the sample base. The key urban clusters in terms of representation were: Mumbai-Pune- Thane The NCR (Delhi, Faridabad, Gurgaon, Noida and Ghaziabad) South Majors (Bangalore, Chennai, Hyderabad) 1,264 East Majors (Kolkata, Bhubaneshwar) The leading cities in terms of respondents were - Mumbai, Delhi, Hyderabad, Bangalore, Chennai, Gurgaon, Kolkata, Pune, Ahmadabad, Jaipur, Lucknow, Chandigarh, Indore, Bhubaneswar, Nagpur, Coimbatore, Noida, Gurgaon, Surat, and Vishakhapatnam. 7

9 Respondents by Type of cities and Regions Maximum participation has come from the North and the South Regions with 29% and 27% respectively. The spread across regions is quite balanced except from the Central zone where only 9% response rate is recorded. The 5 metro cities have contributed 38% of the responses as compared to the 5 mini metros with 18% responses. Maximum responses (44%) have come from the rest of the cities in India. 8

10 2.3. Age, Experience and Education The bulk of the respondents were young, with almost 40% of them being between years of age. Except for the 46 years and above age group all the other age group respondents were almost evenly distributed. Almost 40% of the respondents had over 8 years of work experience. Almost 1/3 rd of them (37%) were relatively inexperienced with less than 4 years of work experience. The spread across the experience brackets was quite balanced. The respondents were almost equally distributed across the various years of experience brackets. Just under half of the respondents (43%) were graduates and over 1/3 rd of them (38%) were post graduate. In terms of stream of education, almost 2/3 rd of the respondents (64%) had a professional degree. Only 4% of the respondents were educated below graduation level. 9

11 2.4. Type of Households and Income Levels Almost 3/4 th of the respondents (77%) were sole earners of their respective families. 16% came from double income households and 6% came from households which had more than 2 earning members. 3/5 th of the respondents earned less than Rs 400,00 per annum, whereas only 9% respondents earned more than Rs 12,00,000 per annum. 10

12 2.5. Industry Sectors 9 out of the 10 broadly defined industry sectors had good representation and reported sample of over 150 each (the only exception being the hospitality sector with a sample size of 148). Almost 1/3 rd of the responses (33%) came from the new age industry sectors like BFSI, Software and IT, BPO and Telecom, though a good 29% of the respondents came from the mainline conventional industries like Engineering and Automotive, Core sector, Manufacturing and Pharma & Healthcare. Other sectors and diversified companies constituted the remaining 38% of the respondent sample. The industry sector-wise reported samples were as follows: Industry Reported Sample Others and Diversified 2230 Software and IT 840 Engineering and Automotive 705 Banking, Financial Services and Insurance 543 Pharma and Healthcare 468 Core Sector- Gas, Power and Steel 397 Manufacturing 357 BPO, KPO and ITeS 313 Telecom and allied 309 Hospitality 148 Total

13 2.6. Kind of Companies represented Indian private companies account for the bulk 40% of the respondents, with 10% also coming from the PSU sector. MNCs accounted for almost 1 in 3 of all respondents (34%). 12

14 3. Ranking of Companies This chapter addresses the responses to the question - Your Rankings on the Best Companies to work in (Overall across sectors). Over here, we asked the respondents to select and rank the 5 companies which in their opinion are the best companies to work in. Once they selected these companies, we asked them to give their views on how they would rank them on each of the five factors specified. The specific question asked was Among all the companies that you know of in India, what are the top 5 dream companies that you would want to work for? This was followed by the question Which company would you rank the best on each of the factors? The follow up question was asked only for the top 3 companies of the 5 selected by the respondent in the first question The Overall Ranking (across all sectors) Among all the companies that you know of in India, what are the top 5 dream companies that you would want to work for? On compilation of the responses of all the sample respondents, we found that Google emerged as the Best Company to Work For amongst all the companies. The company had only 0.5 relative index point lead over the second ranked company Accenture. TCS, Infosys and L&T followed as the distant 3 rd, 4 th and the 5 th ranked best companies to work for. 13

15 Rank Company Name Absolute Index Relative Index 1 Google Accenture TCS Infosys Technologies Larsen & Toubro BHEL IBM Tata Motors Wipro Hindustan Unilever Microsoft Tata Steel ABB Airtel State Bank of India ONGC Axis Bank Mahindra and Mahindra Indian Railways ACC HDFC Bank HCL Technologies Delhi Metro Rail Corporation Limited Abbott Laboratories Vodafone ICICI Bank Here sample means the reported no. of respondents who chose the company as the best company to work for. 14

16 3.2. Ranking on each of the 6 parameters (across all sectors) Which company would you rank the best on each of the (6) factors? There are not very significant variations in the rankings across the five factors, except some marginal changes for a few factors. For instance, BHEL is getting rank 6 (and not rank 5) on the parameter financial compensation. The top ten companies and their rank index scores across the five factors are presented below: Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices 1 Google Accenture Overall 3 TCS Infosys Technologies Larsen & Toubro BHEL IBM Tata Motors Wipro Hindustan Unilever There were 47 odd distinct respondent segments with significant sample sizes. We examined how the ranking varied across the key different segments. 15

17 3.3. Variation of Rankings by regions Google stays firmly placed amongst the top of the order across all four regions. However, thereafter the rankings change a bit. While BHEL is no. 2 in the eastern and central region and Accenture is no. 1 in northern and southern regions and no. 2 in the western region, TCS is no. 3 in all the regions except the eastern region. Apart from Google, Accenture and TCS, only L&T is among the top 10 in all the five regions, though their ranks vary across the regions. Infosys technologies, TATA Motors and HUL figure in the top 10 and BHEL, TATA Steel and Microsoft figure in the top 10 list of 3 regions, while Wipro and IBM appear in the top 10 lists of 2 regions. Indian Railway, ONGC and SBI figure in the top 10 in central India only, Airtel only in eastern India and ABB in northern India. There is no company which appears in top 10 list of southern and western region only. 16

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19 3.4. Variation of Rankings by different age groups Again, Google and Accenture retain their top 2 positions across all age groups till the age of 35 years. L&T leads in age groups between years while is there no clear trend coming out for the age groups of 56 years and above. L&T is the only company that figures amongst the top 10 across all the 7 age groups. 18

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21 3.5. Variation of Rankings by type of companies Four types of companies were identified PSU, Indian Private Sector, MNCs and others. Once again, Google dominates one of the top 2 positions, Accenture is amongst the top 2 in all sectors expect PSU. TCS is amongst the top 4 in all the 4 sectors. L&T, Infosys, and TATA Motors are the other companies that figure in the top 10 lists in all the sectors. Wipro, BHEL and Microsoft appear in the top 10 list of 3 company type respondents. IBM and HUL appear in the top 10 list of 2 company type respondents PSU respondents have the most distinct list of top 10 companies, with 2 of these companies being PSUs ONGC and Airtel. ABB appears in the top 10 list of Other sector respondents only. 20

22 3.6. Variation of Rankings by different industry segments Ranking by BPO Sector Respondents This segment s respondents have mostly chosen companies from the Software and IT sector and the BPO sector in their list of best companies to work for. Only 2 companies in the top 10 list seem to not fit the above two industry sector strictly, namely, American Express and E&Y. In general, the segment has also rated Software companies as better places to work in as compared to its own BPO sector companies. Rank Company Name Absolute Relative Sample Index Index 1 Accenture Google TCS Infosys Technologies IBM Microsoft Wipro TCS BPO American Express Ernst and Young

23 Ranking by BFSI Sector Respondents Interestingly, 4 of the top 10 companies ranked by the BFSI respondents are non-bfsi companies (Infosys, TCS, Google and Accenture). 6 banks show up in the top 10 list, namely, Axis bank (1 st ), HDFC bank (2 nd, SBI (3 rd ) and ICICI Bank (4 th ), Citi Bank (6 th ) and Bank of Baroda (10 th ). Interestingly, none of the insurance companies show up in the top 10 list. Rank Company Name Absolute Relative Sample Index Index 1 Axis Bank HDFC Bank State Bank of India ICICI Bank TCS Citi Bank Google Infosys Technologies Accenture Bank of Baroda Ranking by Core Sector Respondents Respondents working in the core industry sectors have largely been loyal to own sector companies but the top 2 companies are from the engineering sector. They chose L&T as the best company to work for, along with ABB at the 2 nd position. The next 4 ranking companies are from the core sector only (Tata Power, Jindal Steel and Power, BHEL and ONGC). Only 4 non-core sector companies figure in their top 15 list L&T, ABB, TATA Steel and Alstom, 3 of which belong to the Engineering Sector and 1 from the Manufacturing sector. 22

24 Rank Company Name Absolute Relative Sample Index Index 1 Larsen & Toubro ABB Tata Power Jindal Steel and Power BHEL ONGC Tata Steel NTPC Alstom GAIL Ranking by Engineering and Automotive Sector Respondents Respondents working in the Engineering and Automotive industry sectors have largely been loyal to own sector companies. 9 out of 10 companies chosen by them belong to their own sector. Only TATA steel is an exception belonging to the Manufacturing sector. Rank Company Name Absolute Index Relative Index Sample 1 Tata Motors Larsen & Toubro Mahindra and Mahindra BHEL Tata Steel Ford India Engineers India Limited Delhi Metro Rail Corporation Limited Toyota GAIL

25 Ranking by Hospitality Sector Respondents As a group, they are the most loyal to their own industry segment sector. All companies chosen by the hospitality sector respondents belong to their own industry with India hotel Company Ltd as the 1 st preference followed by ITC, Oberoi and Marriot. Last year, only 2 out of the top 10 companies were from the hospitality sector. Rank Company Name Absolute Index Relative Index Sample 1 Indian Hotels Company Ltd.(The Taj Hotels Resorts & Palaces) ITC Hotels Oberoi Hotels(East India Hotels) Marriott Hotels India Hotel Leela Venture Asian Hotels Ltd Indian Railways Cox and Kings Jet Airways Radisson hotels & Resorts Ranking by Manufacturing Sector Respondents Interestingly, only 9 out of 10 top companies are FMCG companies (HUL, ITC and Nestle) same as last year. Only TATA Motors belongs to the Engineering and Automotive sector. 24

26 Rank Company Name Absolute Index Relative Index Sample 1 Hindustan Unilever ITC Nestle Britannia Procter and Gamble Coca Cola India Colgate Palmolive Dabur India Limited Godrej Consumer Products Tata Motors Ranking by Pharma and Healthcare Sector Respondents As a group, they are the most loyal to their own industry segment sector. All companies chosen by the pharma and healthcare sector respondents belongs to their own industry with Abbott Laboratories as the 1 st preference followed by Dr. Reddy s, Pfizer and Cipla. Rank Company Name Absolute Index Relative Index Sample 1 Abbott Laboratories Dr Reddy's Laboratory Pfizer Cipla Glaxo Smith Kline Novartis Ranbaxy Johnson & Johnson AstraZeneca Biocon

27 Ranking by Software and IT Sector Respondents This segment has not looked beyond its own sector. All the top 10 companies ranked are from within the IT, software and internet sector. The list is led by Google followed by Accenture, TCS and IBM. Rank Company Name Absolute Index Relative Index Sample 1 Google Accenture TCS IBM Microsoft Infosys Technologies Wipro HCL Technologies Adobe Systems India Pvt Ltd Dell Ranking by Telecom and Allied Sector Respondents The telecom sector respondents find their own sector companies quite worthy of being the best companies to work for. The top 2 companies are Airtel and Vodafone however Google and Accenture feature amongst the top 5. 6 out of 10 companies belong to the telecom sector. Other 4 companies belong to the Soft and IT sector (Google, Accenture, Microsoft and TCS). 26

28 Rank Company Name Absolute Index Relative Index Sample 1 Airtel Vodafone Google Ericsson Accenture Idea Cellular Limited TCS BSNL Reliance Communications Microsoft Ranking by Others and Diversified Sector Respondents Rank Company Name Absolute Index Relative Index Sample 1 BHEL Larsen & Toubro Hindustan Unilever Wipro ABB Accenture Tata Steel Airtel Google TCS

29 4. Ranking of Companies within Sector This chapter addresses the responses to the question Within the industry sector you are currently employed in - Among all the companies that you know of in India, which company you would rank the best, considering all the factors? Over here, we asked the respondents to select and rank the 5 companies within their respective work sectors, which in their opinion are the best companies to work in within their industry. Once they selected these companies at the overall level, we asked them to give their views on how they would rank them on each of the six factors specified. This was followed by the question Which company would you rank the best on each of the factors? The follow up question was asked only for the top 3 companies of the 5 selected by the respondent in the first question. The rankings thus obtained for the 10 broad industry sectors are presented sector-by-sector below Sector Business Process Outsourcing (BPO/ KPO/ ITES) Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices 1 Genpact TCS BPO Wipro BPO IBM Daksh Overall 5 HCL BPO Services Aegis BPO Services WNS MphasiS BPO EXL Service Holdings /7 Customer

30 4.2. Sector BFSI (Banking, Financial Services, Insurance) Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Axis Bank State Bank of India HDFC Bank ICICI Bank Citi Bank HSBC Standard Chartered Bank 8 American Express HDFC Standard Life Barclays Sector Core Sector (Oil & Gas/ Power/ Steel/ Minerals) 29

31 Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Jindal Steel and Power Tata Power NTPC Tata Steel ONGC GAIL SAIL Coal India Limited Hindalco Industries ACC Sector Engineering and Automotive Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Larsen & Toubro Tata Motors Mahindra & Mahindra BHEL Maruti Udyog Hyundai Motors Ford India ABB Toyota Bajaj Auto

32 4.5. Sector Hospitality (Includes Aviation, Tours & Travels, Hotels) Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Indian Hotels Company Ltd.(The Taj Hotels Resorts & Palaces) 2 ITC Hotels Oberoi Hotels(East India Hotels) 4 Marriott Hotels India Radisson 5 hotels & Resorts 6 Hotel Leela Venture Club Mahindra Holidays 8 Asian Hotels Ltd Cox and Kings Jet Airways

33 4.6. Sector Other Manufacturing (FMCG, Durables, Other non-engineering) Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Hindustan Unilever Nestle Coca Cola India Procter and Gamble Dabur India Limited Asian Paints Colgate Palmolive Britannia Godrej Consumer Products 10 Samsung Sector Pharma and Healthcare 32

34 Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Abbott Laboratories Dr Reddy's Laboratory Glaxo Smith Kline Novartis Johnson Johnson & Cipla AstraZeneca Pfizer Ranbaxy Biocon Sector Software and IT Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices 1 Google Accenture Microsoft Overall 4 TCS Dell IBM Infosys Technologies HCL Technologies Hewlett- Packard Wipro

35 4.9. Sector Telecom and Allied Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices 1 Airtel Overall 2 Vodafone Idea Cellular Limited Ericsson Reliance Communicati ons 6 Nokia Tata Teleservices BSNL Siemens Communicati ons 10 Aircel

36 4.10. Sector Others and Diversified Rank Company Name Relative Index Career Growth Prospects Financial Compensation Work Life Balance Performance Evaluation Stability Other HR Practices Overall 1 Indian Railways Delhi Metro 2 Rail Corporation Limited 3 Engineers India Limited DLF Universal Limited Canon Boston Consulting Group 7 CRISIL Mc. Donald s Xerox Jaiprakash Associates

37 5. Non Ranking Parameters Apart from pure ranking and rating of companies, the respondents were asked several questions on various aspects of employee satisfaction, relationships with superiors, etc. This chapter presents the findings of these aspects What makes a company a fantastic place to work in? Over here we asked the respondents to identify the factors that make a company a fantastic place to work in. The respondents were presented with 5 factors: Growth Oriented- Career and Growth Prospects Compensation and Benefits Progressive Culture promotes Diversity & Work life balance Ethical High standards of Fairness, Objectivity and Transparency Stability Large scale diversified operations Other HR practices of the company (Training/ Mentoring/ Working atmosphere) They were asked to rate each of these factors on a scale of 1-5 (1 being low importance, 5 being high importance), based on which the percentage importance of each factor was computed. They were also asked to rank their own companies on each of these factors on the same scale to see the difference between the expectations of the employees and the reality. Growth Oriented- Career and Growth Prospects 37% of the employees feel that career and growth prospect is the most important factor that makes a company a fantastic place to work for. Against this, only 13% employees feel that their companies provide excellent career and growth opportunities and 42% feel that their companies fail in providing the expected growth and development. 36

38 Compensation and Benefits 27% of the employees feel that compensation and benefits is the most importance factor in their professional careers. Nut only 11% of the respondents feel that their companies are able to meet their compensation expectations, whereas 43% employees feel that their companies fail in meeting their compensatory expectations. Progressive Culture promotes Diversity & Work life balance 37% of the employees feel that progressive culture is not an importance factor in making a workplace a best place to work for, whereas 24% employees feel that it is extremely important for companies to have a progressive culture. But only 11% of the respondents feel that their companies are able to create a culture of their choice and 45% employees feel that their companies fail in creating a progressive culture. 37

39 Ethical High standards of Fairness, Objectivity and Transparency 37% of the employees feel that it is not important for a company have very high standards of ethics to be classified as a best place to work for, whereas 29% employees feel that it is extremely important for companies to have high ethical standards. But only 12% of the respondents feel that their companies are able to maintain the desired level of ethical balance and 44% employees feel that their companies fail in meeting ethical standards. Stability Large scale diversified operations 39% of the employees feel that it is not important for a company have very high stability to be classified as a best place to work for, whereas 24% employees feel that it is extremely important for companies to have stable and large scale operations to hedge any risks in the future. But only 12% of the respondents feel that their companies are highly stable and 46% employees feel that their companies are very unstable. 38

40 Other HR practices of the company (Training/ Mentoring/ Working atmosphere) 40% of the employees feel that other HR practices like training, mentoring and working atmosphere are not important for them, whereas 27% employees feel that it is extremely important for companies to have good HR practices to become a best companies to work for. But only 13% of the respondents feel that their companies have good HR practices and 47% employees feel that their companies are have poor HR practices. Career growth seems to be the most important factor for the employees, which attracts them to a given company. Stability is seen to have the least importance amongst all the factors. In conclusion, the big picture that appears is that the employees see the attractiveness of a company as a place to work for from the perspective of what the company has to offer to him/her and not what the company has to offer per se. 39

41 Comparison: The overall sense is that companies fail to meet the expectations of the employees across all the 6 factors Rating of own company on the five factors identified As mentioned earlier, the respondents were asked to rate their own companies on these 5 factors on a scale of 1-5 (1 if their company fares poorly and 5 if their company is excellent). The purpose of this exercise was to ascertain how happy or unhappy the respondents are with their own employers on the 5 factors identified. Overall, the respondents rated their company s performance at an average of 2.27 on a scale of 1-5, which implies that respondents do not rate their respective companies too highly. In fact, for all the 6 individual factors, the performance rating scores averaged around 2.3 except for Other HR Practices. 40

42 5.3. What makes a company attractive? What would be the most important things that the employees would look for that would make a new job attractive enough to change to? The respondents were asked to pick out 3 out of 9 factors. Based on the proportion of respondents choosing a factor, inferences regarding the most important factors were drawn. Interestingly, higher job role and responsibility edges past compensation and benefits to emerge as the most important factor of attraction of a company when it comes to a new job just like last year. There is no change in the percentage importance in these 2 factors from the last year. Despite a noticeable increase in its importance (+5%), work environment and culture of the prospective company hung on to its position of the third most important factor. On the other hand Learning opportunity gained importance to emerge as the fourth most important factor at 39% as against Brand of the company. With the top two important factors which makes a company attractive to the respondent employees being higher job role and responsibility and compensation and benefits, clearly their own personal growth prospects is what drives the employees the most when it comes to moving jobs. The company based factors ( work environment and culture, company brand image and learning opportunities ) are only of secondary importance to them. The factors that are not really considered important by most of the respondents when looking at a new job opportunity (company) are: Location/ city Change the career into a new functional role or industry Global/ Regional responsibility To work with well-known person 41

43 5.4. What upsets employees strongly enough to start contemplating change? Often, people change jobs because of push factors in the current job, i.e., things that are not working to their satisfaction. Which factors will make you stay with your current organisation, and in case not fulfilled, will make you look for job in other organisation? The respondents were asked to pick out 3 out of 10 factors. Based on the proportion of respondents choosing a factor, inferences regarding the most important factors were drawn. If career and growth prospects is what employees considered as the most important factor in their evaluating a company to be a fantastic place to work in, it is no surprise that lack of career growth came out clearly as the most important factor considered by them to think of leaving a company (with 66 % selecting it as against 71% last year). In fact, the second most important dissatisfier dissatisfaction with the financial package is a significantly lesser devil than lack of career growth with only 49% employees selecting it (against 47% last year). At 41%, non-conducive work environment and culture also emerged as an important dissatisfier triggering a job change (as compared to 46% last year). This clearly indicates that personal career growth is what drives employees at the core. Lack of it is what triggers most of them to look out ; it is what they believe is the most important factor that makes a company a fantastic place to work for (manifested as career and growth prospects in a company) and therefore, it is what they seek in the new company that they consider attractive (manifested as higher job role and responsibility). Thereafter, it is about money honey! Dissatisfaction with their current financial package is what triggers the next most of them to look out ; a good financial package is what they believe is the most important factor that makes a company a fantastic place to work for and therefore, it is what they seek in the new company that they consider attractive. The factors that are not really considered important dissatisfier by most of the respondents in their current jobs (company) are: Lack of recognition Location/city Relationship with current supervisor/manager The company is not growing 42

44 Brand of the company not being attractive Sense of belongingness with the company not being strong 5.5. Satisfaction in current job role The specific question asked was whether people were satisfied in their job role given their qualifications. Only 53% were satisfied (against 70% last year) and 47% were not satisfied (against 30% last year) Adherence to Ethical Values The respondents were asked about the ethical values of senior management in their company. The specific question asked was How well do you believe that the senior management of your company lives up to the company's standard code of ethics? The five choices given were: Don't abide by company's ethics at all Not very well Sometimes do, sometimes don't Very well Extremely well Don t know The dis-heartening thing for companies is that only 43% of the respondent employees believe that their senior management adheres to ethical values very well or extremely well (as compared to 71% believing so last year). 23% (as compared to 15% last year) think that their management does not adhere to their expected ethical values and standards. Overall percentage Last year Don't abide by company's ethics at all 5% 7% -2% Not very well 17% 8% +9% Sometimes do, sometimes don't 32% 15% +17% Very well 28% 31% -3% Extremely well 15% 40% -25% Don t know 2% - - Change from Last Year 5.7. Relationship with the immediate boss/ supervisor The respondents were asked about their satisfaction level with their relationship with their immediate supervisor. How satisfied are they with the current boss/ supervisor. The answers were captured on a 5 point scale (1 extremely dissatisfied, 5- extremely satisfied). The parameters explored were: My Boss cares about my career growth My Boss communicates with me regularly & effectively My Boss recognizes me for work well done My Boss cares about me as a person I see a leader in my Boss 43