The Moment When We Are Complete

 

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~

As years pass by, we try to grow,

We give a small piece of ourselves to those we know.

 

Yet a distinct lump is retained inside,

Unrevealed, Pure and Mystified.. it remains best kept in the silent hide.

 

We keep that unique piece saved for the day,

When a special someone with charms can take it away.

 

When we are robbed of that masked morsel in our new meet,

Is the moment when we are complete!

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The Economic Outlook @ Thane HR

Economic conditions directly impact HR as they provide a background to determine the recruitment, development & retention policy for the organization to meet it’s customer needs. Thane HR professionals got an excellent opportunity to receive an overview of the country’s changing demography & it’s impact on the third largest economy.  On 18th March, 2016, Thane HR Group invited Mr. Prashant Jain, Executive Director & Chief Investment Officer, HDFC Asset Management Co Ltd (Popularly known as HDFC Mutual Fund) to share his take on the current Indian economic outlook.

Indian GDP Outlook:

Real GDP growth rate for India was around 7.5% in 2015 and Nominal growth rate was around 12%-13%. A nominal GDP will often appear higher than the real GDP, as real values are adjusted for inflation, while nominal values are not.

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Referring to the image above, you will notice that Indian economy is growing at a static rate i.e. from 15% (1991-2000) to 14% (2001-10) to 15% (2011-15).

Why is Indian Economy Growing?

Rising Population

Every year, India’s population is increasing by 2% leading to a steady increase in the rate of consumption.

Nuclear Families

Large number of joint families are breaking down to form nuclear families. About 1% increase in consumption rate is experienced annually due to this reason.

Penetration Levels of Consumer Durables

Mobile phones which are just 15 years old in the country, have penetrated the 80% – 90% of Indian market. On the contrary, motorcycles & cars have been able to cover 40% &  8% respectively. This shows the growth potential that Indian markets still possess.

Consumer Choices

Due to more consumer product offerings, new items are frequently bought.


Outlook into Indian Equities:

IMG_20160318_204819

Volatility in the Short Run

Markets give volatile returns in the first few years. However, as the holding period increases, the volatility come down to providing returns which fall mostly between 11% – 19%. This is because Indian GDP growth is around 15% every year.

Correlation Between Sensex & Equity

If profits grow by 20%, the value of company also increases by the same percentage. The value of the company is in correlation to the profits of the company. At the same time, we understand that Indian GDP growth & the growth in Sensex go hand-in-hand. This is because Sensex has the tendency to correct itself to be higher or lower based on the GDP growth.

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Insights by Mr. Sharad Gangal, Executive Vice President HR , Admin, IR, Thermax

 

With one million new entrants joining the labour force every month for the next 20 years, Skill India has gained a corner stone importance. While, India’s biggest contribution comes from Service Sector, there is a need to leverage the Manufacturing industry that has the capability to provide employment to the increasing population. HR needs to be awakened and aligned to deal with the emerging Employee Relations in the country. He emphasized the below mentioned pointers:-

  • Awareness on ER is missing. it is rare to find a skilled ER/IR manager as compared to an OD or Comp&Ben expert. 

  • Apart from Dunlop’s Systems Theory, we do not have a strong theoretical model in the IR field. There is a need to encourage research and more thinking in this field.

  • Contract Laborers are our responsibility. Organizations need to take proactive steps to further regulate the conditions of Contract workforce. One has to be judicious for the disparity between the different working units in the organization.

  • Today, workers lookout for income security as compared to job security. This is a critical reason for the employees not to join unions. Once direct communication between workers & management flourishes, unmerited union demands are tapered off automatically.

Conclusion

While a lot of tittle-tattle occurs on where to invest and when to invest, Mr. Prashant Jain suggested to enter in the mutual fund market especially when the bull does not seem that strong. Eventually, the head-strong bull will equate itself to the growing GDP. Moreover, if you are confused between the different funds, bet on anyone that has given consistent returns more than the market rate, over a long period of time!

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About Thane HR Group

Thane HR Group was founded in the year 1996 with an objective of getting the HR Professionals staying or working in Thane District on a common HR platform. Over a period of 18 years, Thane HR Group had many HR experience sharing meeting. Thane HR has successfully arranged for more than 150 such programs, absolutely free of cost!

You can connect to Thane HR Group through the following website –

 FB – https://www.facebook.com/groups/ThaneHR/

LinkedIn – https://www.linkedin.com/groups/Thane-HR-Group-136361/about

Transcendence

Moving along a journey unknown,
Only this time I am not alone!
Someone’s spans the road with me, 
Someone who says ‘Its ok! Be carefree’.

~

Path is unclear, the vision is blur, 
Small steps we take holding each other,
Life is changing deep within,
Lively and open, I allow life to seep in.

~

Caterpillar to butterfly, I fly with open wings,
Grateful to Him and His blessings!
In just a few days, how different is life,
I have a husband and I am someone’s wife!

Frozen

I wonder about the path that is chosen,
About the ways relations have taken,
About the hearts that are frozen.

~

Do I want them be melted again?
Will new efforts go in vain?
What can heal the pain?

~

Downs of life?
Or is it a learning through strife?
Frozen friendships are sharper than knife.

~

 Purity in my soul, then what went wrong?
Is it time to be tractable, or be headstrong?
Inability.. to explain or to belong?
True friends don’t leave, they walk along!!

The Learning Curve

~

Every morning has a learning in store for me these days,

Life is enriching me in its VUCA ways.

Learning to value myself, and the small gifts I have,

Expressing gratitude to those who are standing there!

~

Realizing those who failed me, and those who shined,

Learning to let it go, to be kind.

Learning to speak up, and express the suppressed.

Nurturing dreams and strive for the zest!

~

On being engaged, welcoming a new wonderful life,

From a pampered daughter, learning soon to be a loving wife.

Trying to know him more in this courtship stage,

And slowly falling in love with him in an arranged marriage.

~

Life is sliding beautifully to a fresh pool of maturity,

Abounded with unconditional love, lifelong commitment and divine purity.

This maturity teaches me that I cannot take the wrongs and make them right,

But as I wake up each morning, I can choose to see the light!

~

Bijay Sahoo on New Frontiers of Skill Development @ Thane HR

As we move ahead in our careers, we focus more on the conceptual skills, leaving aside what forms the base of skill development – the technical and functional skills. Mr. Bijay Sahoo, President – H R at Reliance Jio Infocomm emphasizes on the developing technical skills in India, especially when the country has a second largest workforce in the world and merely 2% are skilled.

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Mr. Bijay Sahoo, President – H R at Reliance Jio Infocomm

Mr. Bijay Sahoo presented insights from his extensive research in the area of Skill Development at the Thane HR podium on 20th March, 2015 . Thane HR Group is a group dedicated to bring together the HR talent pool to a common platform.

Understanding the Skill Demographics

A. Workforce Statistics

The global workforce in India comprises of 3.3 Billion. India is the second largest workforce of 1.2 Billion after China. We have an edge over China with respect to our young population i.e 65% of our workforce is young. 12 Million seek jobs in India and the country is adding 1 million workforce every year.  1.2 crores Indians are currently unemployed and we stopped creating employment after 2011 onwards.

B. The ‘Made in China’ Vision

In 2010, IT started creating employment. Today, we receive 125 billion dollars from IT sector. However, Approx. 100 crores of such money is spent on an expensive Apple phones and other such luxury items which are imported from abroad.

80% of goods in the world are manufactured in China.  So, a large portion of our income ultimately is shared with our neighbor country. Similarly, 80% of Intellectual Property income of the world goes to USA.

Interestingly, China has started lower level of designing. This means they are getting into IP slowly and steadily. Even though USA is currently a 16 trillion dollar economy and China is a 9 trillion dollar, USA has increased with merely a 2.2% GDP and China with is growing at a steady rate of 7.4%.

We see that India has to learn from it’s neighbor country to ‘think in advance.’

C. The Indian Skill Problem

India has merely a 2% skilled workforce. The world is ageing, Mr. Sahoo mentions, India needs to prepare it’s manpower. This needs to be at a technical level i.e. an ITA level.

Global Skilled Workforce

According to Mr. Sahoo, there is a huge % of employers having difficulty in filling job vacancies. In it’s growth phase, India has shortage of skills, whereas UK’s vocational education seems to be mature enough to meet it’s current skill demands.

Demand Supply Skill Gap

Disruptive & Emerging Technologies

Research has identified 12 technologies that will create 30 trillion dollars in the coming time. Any talent amongst us in these 12 technologies, will fetch us the next fat salary.

Emerging technologies

These disruptive & emerging technologies are :-

  1. Mobile Internet

  2. Automation of Knowledge Work. This Also Includes Ecommerce.

  3. Internet of Things.

  4. Cloud Technology

  5. Robotics

  6. Automation Vehicles

  7. Next Generation Geononics

  8. Energy Storage

  9. 3d Printing

  10. Advanced Materials (Gene Sequencing)

  11. Advance Oil and Gas Exploration

  12. Renewable Energy

Suggested Solution on Indian Skill Gap
Skill Gap Solution in India

Skill Gap Solution in India by Mr. Bijay Sahoo

New Frontiers for HR Department
  1. In the changing world, ‘Employability’ has become more important than ‘Employment’. This means skilled people, in the coming times, will work for multiple companies. One person will take salaries from 4 companies.

  2. People will also work after the retirement age.

  3. The emerging technologies will shift the demand for skills.

  4. Disruptive technologies like “automation of work” will make the HR jobs irrelevant.

  5. HR needs to think in terms of what the enterprise needs and how can I fill the gap in the fastest way.

Conclusion

While skill development is crucial, India needs to develop skills for the ‘Next Big Thing’.

About Thane HR Group

Thane HR Group was founded in the year 1996 with an objective of getting the HR Professionals staying or working in Thane District on a common HR platform. Over a period of 18 years, Thane HR Group had many HR experience sharing meeting. Thane HR has successfully arranged for more than 150 such programs, absolutely free of cost!

You can connect to Thane HR Group through the following website –

 FB – https://www.facebook.com/groups/ThaneHR/

LinkedIn – https://www.linkedin.com/groups/Thane-HR-Group-136361/about

About LNML Maharashtra Institute of Labour Studies

LNML Maharashtra Institute of Labour Studies is an independent department under Maharashtra Labour Ministry. It is one of its kinds in the field of labour studies. It has a glorious past of 67 years and has emerged as a stronger body which has contributed to the economy and industry in many ways.

You can connect to LNML Maharashtra Institute of Labour Studies through the following website –

Website – http://www.mils.co.in/

LinkedIn- http://www.linkedin.com/profile/view?id=285636594&locale=en_US&trk=tyah2&trkInfo=tas%3Amils%20%2Cidx%3A1-1-1

FB – https://www.facebook.com/milsplacementcell

Maharashtra Government Website – http://mahakamgar.gov.in/MahLabour/mils-index.htm

Labour Law Reforms with Prakashji Mehta, Minister of Labour, GOM

It is undoubted that a comprehensive view on labour market reforms is required, one that addresses the needs of both employers and workers. Therefore, on 7th Feb, 2015, Samarth Bharat Vyaspith (SBV) along with Thane Manufacturers Association (TMA), National Institute of Personnel Management (NIPM) and Thane HR Group (THRG) brought together a symposium on “Labour Law Reforms” with an aim to bring to a single platform, the views of the tripartite bodies of Industrial Relation – Government, Union and Management. 

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The uniqueness of this symposium rested in the fact that it provided a holistic understanding on the topics of labour laws reforms, not only through the perspective of Management and Union, but also presented the viewpoint of Government.

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The Chief Guest for this event was Honourable Shri Prakashji Mehta, Minister of Labour, Government of Maharashtra. (See:- http://www.mediapartner.in/nirdhar-parishad/)

The eminent speakers on the Labour Law Reforms were:-

Mr. Sharad Gangal – Executive Vice President HR, Admin, IR, Thermax

Mr. Deepak Gadekar – HR & IR, Voltas

Mr. Arvind Shrouti – Employee Relations Expert

Mr. D. P. Pagar – Ex-Joint Labour Commissioner, Mumbai

The event was facilited by Mr. Alok Sheopurkar, Executive Vice President & Head – HR at HDFC. Mr. Prashant Sawant, Chief – HR at Jupiter Hospital played an important role in organising the entire event.

Background on Labour Reforms 

India needs jobs; 1 million kids will join the labour force every month for the next 20 years. This is why the Government is stressing on the ‘Make in India’ initiative. However, the biggest hurdle to this initiative is the ‘ease of doing business’ in the country.

 

Problems for Labour Law Reforms in India
  1. The 67 Licenses Problem

In his speech, Hon. Minister Prakashji Mehta mentioned that to open a factory in Maharashtra, one has to apply for 67 licenses. Complying with these licenses lead to a stumbling block to the start-ups in the country. Mr. Mehta informed audience that his government is proposing a reform where the licenses, to be complied with, will come down to as low as 25 in number. Moreover, efforts are also being made to provide for all the 25 licenses in a single go.

  1. Reactive Approach to Labour Reform

Mr. Sharad Gangal threw light on how Indian labour law reformations are unstructured in India. They have a legacy of following a reactive approach. There were times when exit policy was much talked about. Eventually, when the organizations started facing the problems of talent drain, the exit policies no longer remained a problem. The hot topic for the country today is the problem of Contract Labour. Mr. Gangal mentioned, “There exists a problem, and we simply react to it. There is a need for comprehensive reforms.” Therefore, it becomes important to set a direction for the reforms. We should not make the reforms a reaction to the labour law issues. Instead, the reforms should be proactive towards what the country wants to achieve. The key lies in acting for the long term sustainable solution.

  1. Wage Arbitrage or Job Arbitrage?

It is a wide known fact – ‘Compensation ∝ Risk’. However, in the case of contract workers, the realities are completely the different. Contract labour are not only paid the lowest but also without any social security. Another widely observed fact, Mr. Gangal, says is that, “We all know that permanent workers act as supervisors to the contract labourers and most of the work is performed by the contract labour workers.” Contract workers are not only underpaid for the hard work but they also have risk of losing the job. Interestingly, it is not Job security that employees look for. It is the wage security. Mr. Gangal suggested that Contract workers should be paid higher than their permanent counterparts. If the contract workers are paid more wages, the employers hire less Contract labours. This will play an important role in diffusing the current problem of increasing Contract Labourers in India.

  1. Social Cost for Short Term Saving

In a research made by Mr. Arvind Shrouti, sampling 500 companies in Pune, he found out that about 70% of people are either trainees or casual labourers or they work on contracts. The minimum wages for this class earns about Rs. 4000/- per month, leading to Rs. 130/- per day. Mr. Shrouti expressed that we are creating a weak society for ourselves because Rs. 130/- cannot provide for basic education.

  1. Link between Contract Labour and Rapes in Pune

Another shocking fact in Mr. Shrouti’s report depicted that because of the poor conditions of the informal sector in Pune, they do not get married. This has resulted in the increase of rapes in the region. Therefore, we see that Labour Law reforms not only have an economic implication, but also a social and psychological impact.

  1. Archaic Laws

With the changing time, there is a need to make the laws relevant to the changing needs of the labour market. Mathadi Act, started by Annasaheb Patil, was a beautiful act which ensured income protection to those who carry loads on their heads. However, today, as new technologies emerge, it becomes difficult to identify works to be listed as manual. In order to get workers from the Mathadi board, industries would have to replace existing staff employed on factory jobs.

Another provision which becomes difficult to implement falls under Factories Act which mandates the appointment of a doctor having a diploma in Occupational Health and Safety (OHS). There are about 200 OHS doctors in the State. Therefore, such conditions becomes difficult to comply with.

  1. Small Factories Act Debate

According to Mr. D. P. Pagar, India must aim for an inclusive growth, which not only takes care of doing ‘ease of business’ for large scale industries but also for the Medium and Small Scale Industries (MSME’s). For this reason, the government of India has proposed a draft which clubs 14 existing Acts applicable to the sector, making labour law compliance easier for owners of small factories in India.

A contrary argument was proposed by Mr. Deepak Gadekar. He stated that small factories act would lead to creation of a new class within the existing class. Unorganised sector is deprived of many benefits. Implementation of the Small Factories Act, would lead a classes, one which provides the bare minimum and the other which is even deprived of the same.

  1. Management’s Attitude

Implementation of the basic labour law provisions still remains a challenge in the country. Management goes for cheap labour and ignores the skills essential for running the business. The short – term gains of reducing the labour cost proves costlier in the long run.

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Suggested Solutions
  1. Have a Vision

Before drafting the “Make in India” policy, we need to first understand how “Made in India” dimension would look like. We need to have a clear vision for the kind of Industrial Society we want be a part of.

  1. Labour Code

There are 44 labour laws under the purview of Central Government and more than 100 under the State Government. This leads to tremendous complexity in implementing them. It is, therefore, suggested to prepare a ‘Labour Code’, which will help to simplify the Labour Laws.

  1. Uniform Definition

Having uniform definition for the Labour Laws related to wages and social security will help reduce the complications of implementation of the different laws.

  1. Organising the Unorganised

Our current labour laws, focus only on the 7-8% of the organised sector. Attempts should be made to provide equal benefits to the 98% of the unorganised sector. It is suggested that we should pay 20% more than the Minimum wages to the Contract workers. This will also help reduce the emerging problems of increasing contract labourers in India.

  1. Social Benefits for All

The basic social benefits like PF, Gratuity, ESI and so on should be provided to all – irrespective of whether one belongs to the formal or informal sector. There should be no compromise on the social benefits to the informal sector.

  1. Management Attitude

Management needs to focus on Labour Rate and not on the Labour Cost. It is the HR’s role to check if their workers are getting a fair living condition, and if they have dignity of labour.

Conclusion 

For a successful ‘Make in India’, there is a need for labour reforms. However, implication of each reform will have a long lasting effects. India needs to have a vision for an industrial society it wants to be, and accordingly ­­make holistic reforms, rather than hastily reacting on the current labour issues faced by the nation.

About Thane HR Group

Thane HR Group was founded in the year 1996 with an objective of getting the HR Professionals staying or working in Thane District on a common HR platform. Over a period of 18 years, Thane HR Group had many HR experience sharing meeting. Thane HR has successfully arranged for more than 150 such programs, absolutely free of cost!

You can connect to Thane HR Group through the following website –

 FB – https://www.facebook.com/groups/ThaneHR/

LinkedIn – https://www.linkedin.com/groups/Thane-HR-Group-136361/about

About National Institute of Personnel Management

National Institute of Personnel Management is the premier all-India Institute of professionals engaged in personnel management, industrial relations, labour welfare and human resources development. NIPM is a professional, non-profit-making society registered under Societies Registration Act, 1960. It has a nation-wide membership of over 8,000 Individual Members and over 250 Institutional members spread over 49 chapters.

You can connect to National Institute of Personnel Management through the following website –

 http://nipm.in/about-nipm

About Samarth Bharat Vyaspeeth

 Samarth Bharat Vyaspeeth is a forum established by and within Shram Seva Nyas, on 3rd September 2005. Assisted by numerous selfless organisations and individual volunteers, it aims to transform India from a developing Country to a Developed Country by 2020 and the First Country among All Countries by 2047.

You can connect to Samarth Bharat Vyaspeeth through the following website – http://samarthbharatvyaspith.com/index.html

About Thane Manufacturer’s Association

In early sixties representatives of a few pioneering industries in Thane started the practice of meeting periodically at an appointed place.  These meetings gradually developed into a Manufacturer’s’ Association Thane.  The need to have a registered body was felt and Thane Manufacturer’s Association (TMA) was incorporated under the Bombay Non-Trading Corporation Act 1959 on 5th April,1963.

You can connect to Thane Manufacturer’s Association through the following website –

 http://www.tma-thane.org/

 About LNML Maharashtra Institute of Labour Studies

LNML Maharashtra Institute of Labour Studies is an independent department under Maharashtra Labour Ministry. It is one of its kinds in the field of labour studies. It has a glorious past of 67 years and has emerged as a stronger body which has contributed to the economy and industry in many ways.

You can connect to LNML Maharashtra Institute of Labour Studies through the following website –

Website – http://www.mils.co.in/

LinkedIn- http://www.linkedin.com/profile/view?id=285636594&locale=en_US&trk=tyah2&trkInfo=tas%3Amils%20%2Cidx%3A1-1-1

FB – https://www.facebook.com/milsplacementcell

Maharashtra Government Website – http://mahakamgar.gov.in/MahLabour/mils-index.htm