WORKPLACE PRACTICES IN LEADING INDIAN ENTERPRISES BASED ON SURVEY RESULTS (July-August 2007) 9/25/2008
1
PKB
Table 1: Distribution of surveyed enterprises by sector Number of enterprises Industry surveyed Transportation 25 Metals 23 Drugs 14 Information Technology 3 Chemicals 22 Total 87 9/25/2008
2
PKB
Geographical distribution of the surveyed enterprises (%) 27.6% 41.4%
31.0% Northern Zone
9/25/2008
Southern Zone
3
Western Zone
PKB
Use of permanent employment contracts in the surveyed industries (%) 90 88.3 88 86 84.4 84
83.4
82 80.4 80
79.3
78 76 74 Average level of all Industries
9/25/2008
Transportation
Metal
4
Drugs
Chemical
PKB
Employment distribution of skilled workers in surveyed industries (%) 62 60.7 60
58
57.6 56.0
56 53.9
54 52.5 52
50
48 Average of all industries
9/25/2008
Transportation
Metal
5
Drugs
Chemical
PKB
Employment distribution of workers with bachelor degree (%) 70 65.0 60
50 42.4
30
38.3
38.2
40 29.3
20
10
0 Average of all industries 9/25/2008
Transportation
Metal 6
Drugs
Chemical PKB
Average workforce turnover and new recruitment in last 12 months (%) 16
15.0
14
13.3
13.2 11.7
12 10
11.6
11.3
11.6
9.4
9.3
8 6.7 6 4 2 0 Average of all industries
Transportation
Turnover in past 12 months 9/25/2008
Metal
Drugs
Chemical
Employees newly recruited in past 12 months 7
PKB
Workforce turnover and new recruitment in last 12 months 45% 40% R2 = 0.52
Recruited (past 12 months)
35% 30% 25% 20% 15% 10% 5% 0% 0%
5%
10%
15%
20%
25%
30%
35%
40%
Turnover (past 12 months)
9/25/2008
8
PKB
Difficulties finding suitable candidates by occupation (%) 35 Most Difficult
2nd Most Difficult
29
30
25
19
20
15
15
15
15
10
5 5 3
3 2 1
0 Technical/Professional
9/25/2008
Management & Supervisory
Skilled production workers
9
Administration
Unskilled and semiskilled workers
PKB
Most critical factors for recruiting top talent 40 Most important
35
2nd most important
35
30
28
27 25
20
18
18
15
9
10
10 7 5
6
5
3 1
0 Competitive salaries
9/25/2008
Strong reputation
Career path, opportunities for advancement
10
Good working conditions
Family-friendly policies
Employmentrelated benefits
PKB
Share of surveyed enterprises with performance-related pay system (%) Average of all indust Transport ries -ation Share of enterprises with performancebased pay systems
9/25/2008
69.0
72.0
11
Metal
Drugs
Chemical
73.9
71.4
54.5
PKB
Share of enterprises with performance-related pay system (%) 100 88.9
90 80
85.7 72.7
70
63.6
68.3
66.7
60 50 40 30 20 10 0 Less than 100 Cr
9/25/2008
100-500 Cr
500-1000 Cr
12
More than 1000 Cr
Domesticowned (private) enterprises
Domesticowned (public) enterprises
PKB
Percentage of workers paid under performance-related system (%) 80 70.4 70 60
58.7 55.9 52.1
51.0
Drugs
Chemical
50 40 30 20 10 0 Average of all industries
9/25/2008
Transportation
Metal
13
PKB
Workforce covered by benefits in all surveyed industries (%) Average of all industries
Domesticowned (private)
Domesticowned (public)
Paid annual leave
97.5
98.0
96.7
Injury/accident insurance
94.0
88.8
94.2
Housing or housing allowance
92.6
87.7
95.3
Health insurance
91.4
91.8
91.3
Transport or transportation allowance
89.9
78.0
92.9
Cafeteria and/or canteen
88.4
75.5
91.3
Medical centre
83.3
56.1
94.2
Retirement pension
79.6
48.5
90.2
Educational allowance for workers’ children
73.6
38.9
87.9
Paid maternity leave
61.2
38.3
65.0
Child care centre
37.5
22.5
44.4
Unemployment insurance/severance pay
24.0
17.3
33.3
9/25/2008
14
PKB
Average weekly hours worked for various occupations Technical and/or Professional
Skilled production workers
Unskilled and semiskilled workers
Average of all industries
47.5
48.9
49.0
Transportation
47.2
47.4
47.5
Metal
48.5
49.6
49.7
Drugs
46.4
48.1
48.1
Chemical
48.0
50.5
50.6
9/25/2008
15
PKB
Share of enterprises with a workplace safety and health policy (%) Share of enterprises that have a Share of enterprises that workplace safety have a counseling and health policy system Average of all industries
95.3
77.8
Transportation
100.0
87.5
Metal
95.5
85.0
Drugs
100.0
69.2
Chemical
86.4
66.7
9/25/2008
16
PKB
Share of enterprises providing workforce training Average Trans- Metal of all porta indust tion
Drugs Chemic No. of al obs.
ries
Enterprises providing job skills training (%)
74.7
92
86.9
64.3
59.1
65
% of workers receiving training
36.5
69.9
29.1
5.3
15.1
59
9/25/2008
17
PKB
Average share of employees that are labour union members (%) 70 61.5 60
50
40
39.1 36.4 29.5
30 19.7
20
10
0 Average of all industries 9/25/2008
Transportation
Metal 18
Drugs
Chemical
PKB
Share of enterprises covered by collective bargaining agreements (%) 90
85.7
80 69.2
70 61.5
61.1
60 50 43.5 40 30 20 10 0 Average of all industries 9/25/2008
Transportation
Metal 19
Drugs
Chemical PKB
Main issues settled through collective agreements (%) Terms of emplo yment Wages and benefi Working contra time ts cts
Occupation al DismissSettlesafet al/disc ment Training y ipliof and Work-place and nary labour practic educati healt measur disput es on h es es
Average of all industries
31.3
91.7
31.3
27.1
22.9
20.8
18.8
27.1
Transportation
44.4
94.4
50.0
27.8
27.8
22.2
22.2
38.9
Metal
30.0
90.0
20.0
20.0
20.0
10.0
20.0
20.0
Drugs
22.2
88.9
11.1
33.3
22.2
11.1
11.1
11.1
Chemical
18.2
90.9
27.3
27.3
18.2
36.4
18.2
27.3
9/25/2008
20
PKB
Key issues leading to labour disputes in last 12 months (%) Protectio n of Terms of Work Hours femal Wages Injury employ sa of e and comp ment fet wor emplo bene enscontrac Dismiss -als y k Leave yees fits ation t
Average of all industries
15.0
40.0
15.0
15.0
5.0
0.0
50.0
10.0
Transportatio n
40.0
60.0
20.0
20.0
20.0
0.0
20.0
20.0
Metal
0.0
33.3
0.0
33.3
0.0
0.0
100.0
0.0
Drugs
0.0
42.9
14.3
14.3
0.0
0.0
42.9
0.0
Chemical
20.0
20.0
20.0
0.0
0.0
0.0
60.0
20.0
9/25/2008
21
PKB
Methods of employee involvement in decision-making (%)
Human resource-related challenges Average of all industries
Transportation
Metal
Drugs
Chemical
HRM practice that was first in frequency
Finding and hiring qualified workers
Absenteeism and labour turnover
Finding and hiring qualified workers
Finding and hiring qualified workers
Finding and hiring qualified workers
HRM practice that was second in frequency
Absenteeism and labour turnover; Increasing workers’ skills through training
Increasing workers' skills through training
Increasing workers' skills through training
Worker motivation
Developing a workplace culture where people work together better
9/25/2008
23
PKB
Top priorities for improving productivity in the next 2-3 years Average of all industries
Transportation
Metal
Drugs
Chemical
One of the top two priorities that was first in frequency
Business organizatio n
Business organization
Improving quality of manage ment
Business organizatio n; Improving quality of managemen t
Business organizatio n; Integrating new technology
One of the top two priorities that was second in frequency
Integrating new technology
Reducing labour turnover; Improving worker motivation
Integrating new technolo gy
Increasing access to capital
Improving worker motivation
9/25/2008
24
PKB
Approaches to access information related to innovative HR practices (%) Information Journals from and/or Employers’ Industry other Informal conta publicatio organizati associa compani cts Other ns ons tion es
Average of all industries
66.7
34.5
57.5
34.5
25.3
3.4
Transportation
68.0
52.0
56.0
40.0
16.0
8.0
Metal
56.5
30.4
73.9
21.7
13.0
0.0
Drugs
78.6
35.7
35.7
50.0
35.7
0.0
Chemical
68.2
18.2
63.6
36.4
40.9
4.5
9/25/2008
25
PKB
Major concerns related to work force in next 2-3 years (%) 40 33.7
35
31.4 30 25 20 15
12.8
11.6
10 7.0 4.7
5
3.5
1.2 0 Difficulty Rising labour finding quality costs workers
9/25/2008
Labour turnover
Poor working conditions
26
Workers keeping up with changing technology
Worker motivation
Labourmanagement relations
Increasing labour costs
PKB
Limitations • Firms from the “New Economy” not surveyed • Some of these have brought in major changes in workplace practices • These companies from IT, ITES and Financial services need to be studied in more depth
