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