Tough time calls for smart decisions. When the global recession struck India, Tata Consultancy Services (TCS)took a look at its hr policies and practices to attract talent with optimum cost utilisation

In 2009, the global economy grappled with the most severe economic shock. The defaults on subprime mortgages (home loan defaults) led to recession in the U.S. which significantly affected Indian IT companies, TCS being one of them. U.S. clients took a cautious approach and postponed all outsourced projects, which led to financial crunch.

The biggest challenge for TCS in this economic downturn was to survive and remain competitive. The attrition rate recorded in TCS during this time was at 12.6 per cent in comparison to IT services attrition rate at 10.8 per cent. With rising manpower requirements due to heavy lay-offs, TCS was increasingly hiring non-technical science graduates, which posed a challenge for HR trainers to bring them on a common platform with other employees.

As the recession unfolded, it created the need for HR to take a fresh look at traditional models. Traditional model of HR focuses on administrative functions: benefits, compensation benchmarking, dispute resolution, employee grievance, and performance review and rules compliance. It was the time for management to understand the actual needs of the employees and the employers, and strike a balance, redesign the new roles of HR as per the need of company objectives and market environment.

So, what was the mantra adopted by the HR to ensure the company strategy and people strategy are in sync to create employee value proposition? Read more...

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