Workforce Demographics

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Workforce Demographics Role of HRNASSCOM HR
SUMMIT July 07
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Workforce Demographics

• More generations in the workplace now than there
  ever have been before because of longer life
  expectancy and changes in work history
• The Spend centric model adopted by Generation Y
  is more sophisticated, requiring more services
  and conveniences
• Explosion in the rural - urban migrations in
  Metros of which 50 are in the age group of 15
  25 years

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Workforce Demographics (contd)

• More women are entering the workforce, but have
  higher unemployment and are disproportionately
  represented in the lowest job categories
• Generational collisions in the workplace can
  result in poor customer service, wasted human
  potential, stress, employee retention, and a loss
  of effectiveness

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Spend Centric Model
Gen Y Work force
Retail Shopping, Food courts, Entertainment
Health Wellbeing
Travel Tourism
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Asia Pac Trends

• Growth in affluence as Asia Pacific grows older
• HR faces the challenge of enhancing workforce
  productivity across the available demographic
  profiles
• Large scale underemployment unemployment
  challenges in India are a cause of concern
• Off shoring will have a greater bearing on talent
  rather than just cost
• Significant investments in learning and education
  will be critical

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Employee Perspective
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Reality check

• Alternative employment arrangements
• Long term, short term, assignment specific,
  temporary, retainer ship, temporary to hire,
  consultants.(options limited by imagination and
  Statutes)
• Changing employment patterns
• Contingent workforce growth rates are higher
  than permanent employment growth rates
• Increasing flexible arrangements
• Virtual working, flexi time, 40 hr workweek
  becoming a norm (options limited to Tech
  infrastructure, data privacy and nature of work)

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Response - EVP

• Emerging themes around work life balance, career,
  opportunities, growth, diversity,
• EVP perception greater than reality has an
  significant impact on Organizations than is being
  understood
• EVP seeded in processes and in communication is
  the challenge Walking the talk
• Its the employee experience that counts..

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Response C B

• Rewards focus on base incentive total cash
• Emergence of Performance linked retention plans
• Recognition / cash awards for stretch
  assignments, projects or client feedback
• Flexible retirement benefits , nil vesting
  periods and ease of commute

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Evolution of Reward Structures
A B C D Base Base
Base Base DA
Flex. Plan Special Allow Personal Pay
Special Allow LTA LTA
LTA Medical Medical Medical Education
Allow Allowances Bonus/ Ex-gratia Housing
Housing Housing Hard Furnishing
Hard Furnishing Conveyance, Driver
Conveyance Conveyance Variable Pay
Variable Pay Variable Pay Variable
Pay Retirement benefits Retirement benefits
Retirement benefits Retirement benefits
Rewarding in line with the Tax implications
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Segmented Interventions
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Demographics and its impact Organizations

• Innovative solutions will be the order of the day
  , best practice will need to be linked to EVPs.
• The Online community will be an important source
  for trend spotting and feedback.
• Segmented strategies will become sharper , more
  flexible, but we will still be trying to crack
  the da vinci code of workforce effectiveness

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The ACORNS Principle

• Accommodate employee differences
• Create workplace choices
• Operate from a sophisticated management style
• Respect competence and initiative
• Nourish retention
• Strategic C B programs , flexible and
  segmented
• Growing oak-strong
  organizations

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Untangle the tangle

• One of the gods came down to ask the Buddha
• There is an inner tangle and an outer tangle.
  This generation is entangled in a tangle.
• Who will untangle this tangle of tangles ?
• Those established in morality meditation,
  replied the Master, Untangle the tangle
• 
  5th c BCE
• Dhammapada