9/25/2008 1PKB

WORKPLACE PRACTICESWORKPLACE PRACTICESIN LEADING INDIANIN LEADING INDIAN

ENTERPRISESENTERPRISES

BASED ON SURVEY RESULTSBASED ON SURVEY RESULTS(July(July--August 2007)August 2007)

9/25/2008 2PKB

Table 1: Distribution of surveyedenterprises by sector

87Total22Chemicals3Information Technology14Drugs23Metals25Transportation

Number of enterprisessurveyedIndustry

9/25/2008 3PKB

Geographical distribution of theGeographical distribution of thesurveyed enterprises (%)surveyed enterprises (%)

41.4%

31.0%

27.6%

Northern Zone Southern Zone Western Zone

9/25/2008 4PKB

Use of permanent employmentUse of permanent employmentcontracts in the surveyed industries (%)contracts in the surveyed industries (%)

83.4

80.4

88.3

79.3

84.4

74

76

78

80

82

84

86

88

90

Average level ofall Industries

Transportation Metal Drugs Chemical

9/25/2008 5PKB

Employment distribution of skilledEmployment distribution of skilledworkers in surveyed industries (%)workers in surveyed industries (%)

57.6

60.7

52.5

53.9

56.0

48

50

52

54

56

58

60

62

Average of allindustries

Transportation Metal Drugs Chemical

9/25/2008 6PKB

Employment distribution of workersEmployment distribution of workerswith bachelor degree (%)with bachelor degree (%)

42.4

29.3

38.2

65.0

38.3

0

10

20

30

40

50

60

70

Average of allindustries

Transportation Metal Drugs Chemical

9/25/2008 7PKB

Average workforce turnover and newAverage workforce turnover and newrecruitment in last 12 months (%)recruitment in last 12 months (%)

9.3

6.7

9.4

11.3 11.6

13.2

11.7 11.6

15.0

13.3

0

2

4

6

8

10

12

14

16

Average of allindustries

Transportation Metal Drugs Chemical

Turnover in past 12 months Employees newly recruited in past 12 months

9/25/2008 8PKB

Workforce turnover and newWorkforce turnover and newrecruitment in last 12 monthsrecruitment in last 12 months

R2 = 0.52

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Turnover (past 12 months)

Rec

ruite

d (p

ast 1

2 m

onth

s)

9/25/2008 9PKB

Difficulties finding suitableDifficulties finding suitablecandidates by occupation (%)candidates by occupation (%)

29

19

3

12

15 15 15

5

3

0

5

10

15

20

25

30

35

Technical/Professional Management &Supervisory

Skilled productionworkers

Administration Unskilled and semi-skilled workers

Most Difficult 2nd Most Difficult

9/25/2008 10PKB

Most critical factors for recruitingMost critical factors for recruitingtop talenttop talent

35

27

10

57

1

18

9

28

18

6

3

0

5

10

15

20

25

30

35

40

Competitivesalaries

Strong reputation Career path,opportunities for

advancement

Good workingconditions

Family-friendlypolicies

Employment-related benefits

Most important 2nd most important

9/25/2008 11PKB

Share of surveyed enterprises withShare of surveyed enterprises withperformanceperformance--related pay system (%)related pay system (%)

54.571.473.972.069.0

Share ofenterpriseswithperformance-based paysystems

ChemicalDrugsMetalTransport

-ation

Averageof all

industries

9/25/2008 12PKB

Share of enterprises withShare of enterprises withperformanceperformance--related pay system (%)related pay system (%)

63.666.7

88.9

72.7

85.7

68.3

0

10

20

30

40

50

60

70

80

90

100

Less than 100Cr

100-500 Cr 500-1000 Cr More than1000 Cr

Domestic-owned

(private)enterprises

Domestic-owned (public)

enterprises

9/25/2008 13PKB

Percentage of workers paid underPercentage of workers paid underperformanceperformance--related system (%)related system (%)

58.7

70.4

55.952.1 51.0

0

10

20

30

40

50

60

70

80

Average of allindustries

Transportation Metal Drugs Chemical

9/25/2008 14PKB

Workforce covered by benefits in allWorkforce covered by benefits in allsurveyed industries (%)surveyed industries (%)

33.317.324.0Unemployment insurance/severance pay

44.422.537.5Child care centre

65.038.361.2Paid maternity leave

87.938.973.6Educational allowance for workers’ children

90.248.579.6Retirement pension

94.256.183.3Medical centre

91.375.588.4Cafeteria and/or canteen

92.978.089.9Transport or transportation allowance

91.391.891.4Health insurance

95.387.792.6Housing or housing allowance

94.288.894.0Injury/accident insurance

96.798.097.5Paid annual leave

Domestic-owned

(public)

Domestic-owned

(private)Average of all

industries

9/25/2008 15PKB

Average weekly hours worked forAverage weekly hours worked forvarious occupationsvarious occupations

50.650.548.0Chemical

48.148.146.4Drugs

49.749.648.5Metal

47.547.447.2Transportation

49.048.947.5Average of all

industries

Unskilledand semi-

skilledworkers

Skilledproduction

workers

Technicaland/or

Professional

9/25/2008 16PKB

Share of enterprises with a workplaceShare of enterprises with a workplacesafety and health policy (%)safety and health policy (%)

66.786.4Chemical

69.2100.0Drugs

85.095.5Metal

87.5100.0Transportation

77.895.3Average of all

industries

Share of enterprises thathave a counseling

system

Share of enterprisesthat have a

workplace safetyand health policy

9/25/2008 17PKB

Share of enterprises providingShare of enterprises providingworkforce trainingworkforce training

5915.15.329.169.936.5% of workers

receivingtraining

6559.164.386.99274.7

Enterprisesprovidingjob skillstraining (%)

No. ofobs.

Chemical

DrugsMetalTrans-portation

Averageof all

industries

9/25/2008 18PKB

Average share of employees that areAverage share of employees that arelabour union members (%)labour union members (%)

39.1

61.5

36.4

19.7

29.5

0

10

20

30

40

50

60

70

Average of allindustries

Transportation Metal Drugs Chemical

9/25/2008 19PKB

Share of enterprises covered byShare of enterprises covered bycollective bargaining agreements (%)collective bargaining agreements (%)

61.5

85.7

43.5

69.2

61.1

0

10

20

30

40

50

60

70

80

90

Average of allindustries

Transportation Metal Drugs Chemical

9/25/2008 20PKB

Main issues settled throughMain issues settled throughcollective agreements (%)collective agreements (%)

27.318.236.418.227.327.390.918.2Chemical

11.111.111.122.233.311.188.922.2Drugs

20.020.010.020.020.020.090.030.0Metal

38.922.222.227.827.850.094.444.4Transportation

27.118.820.822.927.131.391.731.3Average of all

industries

Work-placepractic

es

Trainingand

education

Occup-ation

alsafet

yandhealt

h

Dismiss-al/disc

ipli-nary

measures

Settle-ment

oflabourdisput

esWorking

time

Wages andbenefi

ts

Terms ofemplo

y-ment

contracts

9/25/2008 21PKB

Key issues leading to labour disputesKey issues leading to labour disputesin last 12 months (%)in last 12 months (%)

20.060.00.00.00.020.020.020.0Chemical

0.042.90.00.014.314.342.90.0Drugs

0.0100.00.00.033.30.033.30.0Metal

20.020.00.020.020.020.060.040.0Transportatio

n

10.050.00.05.015.015.040.015.0Average of all

industries

Injurycompens-ation

Wagesandbenefits

Protection offemaleemployeesLeave

Hoursofwork

Worksafety

Dismiss-als

Terms ofemploymentcontract

9/25/2008 22PKB

Methods of employee involvement inMethods of employee involvement indecisiondecision--making (%)making (%)

31.827.39.186.427.3Chemical

41.716.750.058.341.7Drugs

22.718.218.268.227.3Metal

50.016.725.058.333.3Transportation

35.419.522.069.531.7Average of all

industries

Dialoguewith

unionreprese

nta-tives

Focusgroup

discussions

Employeevoice

programmes

Manage-ment

and/orstaff

meetingsStaff opinion

surveys

9/25/2008 23PKB

Human resourceHuman resource--related challengesrelated challenges

Developing aworkplaceculturewherepeopleworktogetherbetter

Workermotivation

Increasingworkers'skillsthroughtraining

Increasingworkers'skillsthroughtraining

Absenteeism andlabourturnover;

Increasingworkers’skills throughtraining

HRM practicethat wassecond infrequency

Finding andhiringqualifiedworkers

Finding andhiringqualifiedworkers

Finding andhiringqualifiedworkers

Absenteeismandlabourturnover

Finding and hiringqualifiedworkers

HRM practicethat wasfirst infrequency

ChemicalDrugsMetalTransport-

ation

Average of allindustries

9/25/2008 24PKB

Top priorities for improvingTop priorities for improvingproductivity in the next 2productivity in the next 2--3 years3 years

Improvingworkermotivation

Increasing accessto capital

Integratingnewtechnology

Reducing labourturnover;Improvingworkermotivation

Integrating newtechnology

One of the toptwoprioritiesthat wassecond infrequency

Businessorganization;Integratingnewtechnology

Businessorganization;Improvingquality ofmanagement

Improvingqualityofmanagement

Businessorganization

Businessorganization

One of the toptwoprioritiesthat wasfirst infrequency

ChemicalDrugsMetalTransportationAverage of allindustries

9/25/2008 25PKB

Approaches to access informationApproaches to access informationrelated to innovative HR practices (%)related to innovative HR practices (%)

4.540.936.463.618.268.2Chemical

0.035.750.035.735.778.6Drugs

0.013.021.773.930.456.5Metal

8.016.040.056.052.068.0Transportation

3.425.334.557.534.566.7Average of all

industries

Other

Informalconta

cts

Informationfromother

companies

Industryassocia

tion

Employers’organizati

ons

Journalsand/or

publications

9/25/2008 26PKB

Major concerns related to work forceMajor concerns related to work forcein next 2in next 2--3 years (%)3 years (%)

33.731.4

12.8

1.2

11.6

4.73.5

7.0

0

5

10

15

20

25

30

35

40

Difficultyfinding quality

workers

Rising labourcosts

Labourturnover

Poor workingconditions

Workerskeeping up

with changingtechnology

Workermotivation

Labour-management

relations

Increasinglabour costs

9/25/2008 27PKB

LimitationsLimitations

•• Firms from the Firms from the ““New EconomyNew Economy”” not surveyednot surveyed•• Some of these have brought in major changes in Some of these have brought in major changes in

workplace practicesworkplace practices•• These companies from IT, ITES and Financial These companies from IT, ITES and Financial

services need to be studied in more depthservices need to be studied in more depth

9/25/2008 PKB 28

THANK YOUTHANK YOU