Talent Management: Infosys

Description
The PPT explains about Talent Management Practices adopted at Infosys.

Talent Management @ Infosys

Employees are Infosys’ strength…

“ Our assets walk out of the door each evening. We have to make sure that they come back the next morning.”
N. R. Narayana Murthy Chairman and Chief Mentor

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Agenda
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• Introduction • Recruitment Policies
• Compensation • Training & Development • Rewards, Recognition & Retention • Other Activities
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Infosys – An Overview
• Founded on July 2, 1981 • Largest IT services provider headquartered in Bangalore
2009 Revenue / 5 year CAGR 2009 Net Income / 5 year CAGR No. of Employees Market Cap Global Presence $4.63 billion / 26% $1.28 billion / 28% 109,882 (73 nationalities) $30 billion plus Operating in 30 countries 59 Sales Offices & Global development centers

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Infosys Global Delivery Model

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Revenue Breakup

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Competitive Situation
High Quality & Delivery Abundant Skill Resources Established Industry Government Support Significant benefits
• Moving up the value chain

• 2.5 mn English Speaking graduate pool • Over 500,000 graduating engineers annually. • Services market (including BPO) $50 bn in 2008, exports to grow to $60 bn by 2010 • Offshore „home? to virtually all leading technology companies • “ Tax Holiday” schemes • Supportive Policy environment

• Substantial Cost Savings through off shoring • Intangible Benefits like reduced time to market

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Accolades ?Ranked among “India?s Best Companies to work for – 2009”, by the Great Places to Work Institute India & The Economic Times ?CNBC TV 18 Viewers Choice – New age\ Employer of Choice Award 2007 ?Best Company to work for in India (TNS-Mercer 2005) ?Featured among the top 100 companies in ComputerWorld?s „Best Places to Work in IT in US?, 2004
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1

• Introduction • Recruitment Policies
• Compensation • Training & Development • Rewards, Recognition & Retention • Other Activities
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Campus & Lateral Recruitment
• Rigorous selection process with a series of aptitude and attitude tests. • The selection process for fresh graduates is a combination of resume screening, a written test on analytical thinking, logical reasoning, English language and communication skills and a personal interview. • For laterals, the company follows a competency based recruitment philosophy. • Referrals: The global IT company boasts referral incentives ranging from $350 to more than $1,000, depending on the experience of the recruit. Infosys Technologies is one of many Indian companies that is spurning employee growth through its current workers.

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Campus Connect
• An industry-academia collaboration program to align engineering student competencies with industry needs. • Started in 2004. • Aimed at building a strong foundation to meet the future needs of the growing IT industry. • Global initiative with 500 colleges and 25000 students. • Industry perspective through seminars and workshops in colleges.

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Campus Connect: Program Components
1. Campus Connect Conclave 2. Campus Connect Road Show 3. Faculty Enablement Program 4. Student Project Bank 5. Industrial Visits 6. Foundation Program Rollout 7. Faculty Sabbaticals 8. Technology Seminars/Webinars 9. Sponsorships for Research paper presentations 10. Soft skills program

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Campus Connect: Benefits and Incentives
1. 2. 3. 4. College: Increased exposure Faculty: Honorarium and grant Student: Enhanced employability IT Industry: Better resource management

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Instep: Global Internship Program
• Internships offered across various fields and from various universities. • Full time offers made to the deserving candidates. • Program Structure:
– Application – Resume Evaluation – On boarding and support

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Instep: Monetary Package
• Monetary:
– Airfare, Visa Fee – Monthly allowance – Monthly Benefits Package: accommodation, medical insurance, food, transportation etc.

• Professional Personal Value Adds:
– – – – – Exposure to one of the fastest growing economies Meet founder-directors Real world work experience Individual attention Experience cultures

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1

• Introduction • Recruitment Policies
• Compensation • Training & Development • Rewards, Recognition & Retention • Other Activities
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Infosys Compensation Philosophy
• Holistic Compensation Strategy reinforcing the high performance work ethic • Alignment of compensation philosophy with business objectives and role based organization structure • Benchmarking compensation practices against best-in-class companies • Structured employee recognition approaches: – Talented youngsters are provided various opportunities to take up highly responsible roles – High potential youngsters are drafted as invitees into the Infosys Management Council under the 'Voice of the Youth' Policy – Each of the Practice Units has its own rewards and recognition schemes, which include cash awards and performance appreciation certificates. (e.g. the star performance awards)

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Compensation: Role Based Implementation
• Job Analysis – Detailed process to determine what “a unique job” entails – Assists in creating Job Descriptions / Job Documentation – Identify set of competencies required to do the job well • Job Evaluation – Helps determine which jobs are “more important” to the organization – Internal (Internal Equity) • Jobs value in relation to place in the organization • Jobs that are more “valuable” – External (Market Driven) • Utilizes market / market surveys to determine value • External competitiveness more important that perceived internal value to the organization • Market value of the competency set
Transparent mechanisms to ensure right people move up in the critical Jobs (CMP)

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Compensation: Variable Pay
• The variable pay program was introduced to enhance employee earning potential • Variable pay linked to top line and bottom line, provides automatic de-risking mechanism for the organization • A flexible mechanism to continuously reward and reinforce superior performance • Driving behavior to win as an organization, win as a team, win as an individual

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Performance Based Pay Structure
Component Linked to performance of
Organization

Linked to

Band

CPI

VCPI

IPI

Total Variability

CPI : Company Performance-linked Incentive VCPI : Variable Company Performance-linked Incentive IPI : Individual Performance-linked Incentive

Revenue

F E D

50%

Unit

Operating Margin

C

B (excl BT)
A2

Individual

Operating Margin

A1

5%
Variability % of Gross

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Compensation: Future Proofing the organization
Driving Factors: • Compensation trends at the market place • Differential Compensation Strategies • Reinforcement of High Performance Work Ethic • “Better” Employer for Better Performers • Performance Linked Multi-Level Variable Pay

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• Introduction • Recruitment Policies
• Compensation • Training & Development • Rewards, Recognition & Retention • Other Activities
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Training for Freshers
• Training conducted in Mysore which is India?s largest Corporate Training Centre • Batch divided based on Computer Science (25 weeks) and non-Computer Science (29 weeks) Background • The schedule is as follows:
– – – – – ILI (Infosys Leadership Institute) Soft Skills Training : 1 week Generic Training (Basics) : 4 weeks Intermediate Training : 5 weeks Stream Specific : 18 weeks POST (Training on Live Projects) : 2 weeks

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Development
• Classroom Training Programmes for Technical Skills as well as Soft skill development • Web Bases Integrated Training Management System (ILITE) : Online Tutorials available • Mandatory Certifications every year
– Domain Based : eg: Insurance, Banking etc – Technical : eg: JAVA, Mainframes etc

• Successfully clearing both certifications mandatory for being eligible for highest CRR (Rating System)

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Training of Top Management
• Infosys : Not a promoter owned company • Career Progression based solely on merit and performance • Kris Gopalkrishnan on Succession Planning : “ There is a pool of 400 leaders that Infosys has identified across the globe and does not comprise Indians alone. It is in keeping with company?s multi-national, multi-cultural image where excellence is most important condition”

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Training of Top Management (Contd…)
• 3 Tier Mentoring Process
– Tier 1 of Infosys Management Council, consisting of Board of Directors mentors Tier-2 leaders who in turn guide Tier-3 group – 45 executives part of Tier 1 and each of the leaders undergo training through PDP (Personality Development Programme) – Chosen few (400) employees of the total workforce identified as “High Potential Infoscions” undergo “3 Year Leadership Journey” – The Journey covers 9 pillars for Leadership Development

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9 Pillars of Leadership Development
• 360 Degree Feedback
– PDP plans prepared for each based on feedback

• Development Assignments
– Job Rotations and Cross functional assignment

• Infosys Culture Workshops
– Fortify Infosys Culture among participants

• Development Relationships
– Mentoring and one on one interaction to facilitate knowledge sharing and camaraderie among members

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9 Pillars of Leadership Development (Contd…)
• Leadership Skills Training
– “Leaders Teach Series” conducted by Tier 1 members (eg: Narayan Murthy, Nandan Nilekani etc) to groom members

• Feedback Intensive Programme
– Formal and informal feedback from employees

• Systemic Process Learning
– Helps gain an overall view of the company

• Action Learning
– Exercise in solving real problems in real time conditions

• Community Empathy
– Nurturing social conscience among its leaders

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• Introduction • Recruitment Policies
• Compensation • Training & Development • Rewards, Recognition & Retention • Other Activities
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Performance Appraisal
• PerforMagic Tool - Evaluation on basis of technical and behavioral aspects - Half Yearly appraisal - Consolidated Relative Ranking (CRR) - CRR 1- 4 (1 being the best and 4 the worst) - PIP Program for CRR 4 candidates - Promotion consideration on the basis of CRR

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Rewards Approach
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• Cash Rewards

• Non Cash Rewards
• Work Content • Career Development

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Employee Retention Methods

E-Sat

Compensation
Focus on High Performers, high potential Early Warning Indicator System

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• Introduction • Recruitment Policies
• Compensation • Training & Development • Rewards, Recognition & Retention • Other Activities
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Social Activities
• Infosys Foundation – Incorporated in 1996, it focuses on four key areas:
a) b) c) d) Healthcare Rural development and social rehabilitation Learning and education Art and culture

Employees are encouraged to work for these NGOs apart from their usual work. Infosys also provided a sabbatical to interested employees for the “Teach India” Campaign.

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Other Activities
• Talent Management with a long term perspective
– Primary Education – Public private partnership with Akshay Patra Foundation for providing free daily meals to 825,000 underprivileged children in 14 locations across India – Secondary Education – Donating books, computer facilities to underprivileged children, construction of hostel facility etc. Providing food, education and shelter to prisoners? children – Project Genesis - A part of the Infosys Affirmative Action Program (IAAP) initiated by Infosys BPO. It aims to enhance the skills of graduate students in B and C towns and improve their employability in the IT-enabled Services (ITeS) industry through rigorous training, support and guidance

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Other Activities
• Quarterly Team outings and parties for team building exercises • Birthday celebrations for employees

• Recreational activities like gym, swimming pool, sports facilities, food courts etc. at training centers and office complexes • Adventure groups for outdoor activities like trekking, camping etc.

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Employer Branding
• One of the programs that the company launched to develop leaders and foster innovation in the company was the 'Voice of Youth' (VoY) program • The company sought to set an environment marked by openness, meritocracy, innovation, self-motivation, ownership, and excellence in execution • Infosys founders are the face of the organization which reinforce these values

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Celebrations!!!!
$1 billion Annual Revenue Bash - To celebrate the landmark achievement, Infosys had a huge bash on its campus

It was an evening of fun and dance and a time to reiterate the feeling of being just the second Indian IT services company to do so The company decided to give a one-time bonus of $1,000 to each employee along with a specially designed Titan watch, which shows world time and a T-shirt with a billion-dollarmark logo

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Thank You

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