During 2000-2002, with the opening of economy we saw huge crossovers within the industry and across all industry. With opportunity coming up in BPS, IT, ITES, BANKING, INSUARANCE, the manpower demand saw a paradigm shift. Companies looked for talent with skills with knowledge. MNCs heading in most of the industries found difficulties to retain talents even with hike in salary/perks etc. MNCs also tried to influence the talents by providing hygienic work atmosphere showing care to the employees.

 But what happened?

My research indicate that companies with high rate of attrition couldn't just keep their foot print in the market and started losing Market Share to Indian BIGGIES. More can be seen from the sales force attrition since they are the main skilled talent for generating revenues. You loose one person in sales team you loose 100 customers till you get suitable replacement and that also it has its own life-cycle of productivity- gaining stages of awareness/ knowledge/information/association/relationship/credibility and so forth.

Apart from that before economic downturn we saw another global phenomenon of M & A.

Restructuring of the organization and rationalizing the staff became subject of reality.

 What is net outcome?

You lost people on whom companies invested. It impacted your financial statement positively and off course more robust bottom line. Currently the topic which you find more often discussed than forgotten is how India could as a developing country  insulate her from recession.

Is it a fact or a myth? It will be a history in another 8-10 month with global recovery. Did you hear of rehiring during this phase by few big companies?

Why?

Is it lack of talent or to retain the market share?

 Or to ensure you hit top line of 2007-08 with those people coming back with EQ and generating your lost or threatened revenue to retain and sustain the market share.

 Solicit your inputs with this thought.