Infosys on downhill slide?
By Sheuli

I have been associated with Indian tech major Infosys as an investor, friend and well wisher for more than a decade now.  Their journey, particularly from 1998 until last year has been an impressive story, some thing that most Indians will feel proud about. In the last 18 to 24 months or so, things seemed to have changed quite rapidly.  The sunshine days seem to be getting over.

Every thing that goes up comes down (unless of course it is in hyperbolic orbit) seems to apply quite aptly to Infosys (Infy) now. 

If in the past you spoke to any employee in Infy, my experience has been that they would speak with pride about being part of an iconic company with employee friendly policies and offering a lot of freedom and opportunities.  Today, I spoke to some of the existing / recently quit employees and the mood has changed.  While I have read blogs and comments on various news sites by employees, particularly about the new HR initiative IRACE, the ex employees speak about the new Infosys turning into another cut throat organization. They are needing shoulders to cry on and some body to whom they can vent out their anger.   Litmus, which is the annual employee survey, has been completed recently. Organization wide, the score is approximately 2.6 on the scale of 5.  Perhaps one of the lowest that company may have ever seen.  It is always said that esat is a lead indicator of future performance of the organization, because if employees are not happy, then how customers can be happy? And if customers are not happy, how can an organization grow and do well?  It seems there have been many internal meetings, some even addressed by CXOs, where some senior managers have expressed their abject helplessness in reducing the high attrition particularly of high performing individuals (CRR 1 and 1* in Infy lingo).  

I think all this began with an ex CFO being made Director for HR few years ago. One who clinically looks at each employee as a number and profit making machine can not be given responsibility for the softer/human side of the organization. This lack of balance is the genesis of much employee angst.  It seems hardly anybody dares to speak out and express their heartfelt opinions and views.  With only male CXOs and a men only Executive Council, that too fully desi, who will understand employee anguish particularly outside India and provide solutions to their concerns?

With business returning to normal, it seems there is great haste within now to put in corrective actions including rolling back disliked HR policies. But will that help to create goodwill within and win back unhappy employees? 

(Sheuli is a Bangalore based analyst.  For obvious reasons, she prefers anonymity)