Friday, August 31, 2007

Blue Shirt With A White Collar

Yuppies have been one of the central characters of the well-chronicled "India Shining" story. No account of the country's economic surge would be complete without glowing references to record salary increments, unheard of perks and a massive consumer spend fuelled by the emergence of the rich twenty something professional. The brightest, smartest, wealthiest and the youngest of footloose Indian executives – mostly living in big cities and swanky offices – hog all the limelight and make it to glossy magazine covers. We've been swamped by heady accounts of freshly minted Bschool grad and IITians striking it rich or of compulsive IT and BPO job hoppers who manage to nearly double their salary with every move.

But in reality, white-collar workers or those in supervisory, non-manual jobs are very different from the popular mediahyped imagery. Contrary to the stereotypes, most of the white-collar employees are over 35, and have put in almost 12 years in the profession. And anybody who spends at least five years in a job won't qualify as a job hopper. Half of the whitecollar workers are plain graduates drawing an average monthly salary of Rs 13,000. Around 70 per cent belong to single-income households and an equally big number of them come from non-metro cities.

Just when you may have decided to switch off on this strange breed, here's what might sound familiar – 8 out of 10 want to change job in the next six months - salary being the biggest grouse.

For the world, white-collar workers in India have a glamorised face often referenced to signal the surging fortunes of a nation on the rise. Dominant themes around fat salaries, multiplying job offers and global work environment for the jet-setting lot provide easy and dazzling imageries of a changing India.

In reality, the world of executives is changing – though not as fast and as dramatic. What's the real face of white-collar workers? Where and how do they livework ? What do they aspire for? Has the job-hopping bug hit all? Is salary 'The Factor'? The Corporate Dossier-Juxt-Consult, an online research arm of Indicus Analytics, conducted one of the largest studies to understand and unravel white-collar workers in India. With 16,500 respondents, covering 4,700 companies in 31 cities, the study has been designed to represent 160 million urban Indians.

They aren't as glossy as often perceived. The survey reveals a face that's middle-aged, conventional, stable, mostly graduates with a majority (8 out of 10) employed in the private sector. With 68 per cent living in non-metro cities and close to 46 per cent drawing a monthly salary of less than Rs 13,000, "their white collars appear greasy – not starched," says Sanjay Tiwari, director, JuxtConsult. Only one in eight are very well off having more than Rs 50,000 monthly income.

But that's a face that's changing dramaticall . In the next seven years, India is expected to add around eight million new workers every year – one in every four new worker in the world will come from India. This will happen at a time when the government's role is increasingly shrinking both as a job creator and attitude influencer in India's job market as private sector outpaces them. "Stable, 9-to-5 job with defined predictable career-paths - everything that defined a government job is getting redefined," says economist Laveesh Bhandari who also heads Indicus Analytics.

These shifting tendencies are already beginning to show.

While in one hand average white-collar workers (surveyed) have spent close to five years in their last job, a high 80 per cent say they will be open to or may consider a job change in the next six months and one in four aspire for ESOPs. The stability-loyalty on the surface is being stirred by a dramatic questioning of norms on the inside. If nothing, this shows a growing willingness to experiment across age, hierarchy and sectors. White-collar workers will change in many other ways. The entry-level age – of 23 years that the survey reveals – too is coming down with the younger generation. It is expected to settle around 20 years, experts say.

So far clerical jobs of accountants, general management, administration dominated the entire pool comprising 33 per cent of the total. Emerging but critical functions of the future like IT, HR, designing comprised barely 7 per cent, 3 per cent and 5 per cent respectively. As the services-led economy grows, some of these new upcoming functions will gain importance even as some of the old clerical jobs get eliminated due to automation and standardisation of processes. "Changing nature of economy will demand a new definition of white-collar workers," says Manish Sabharwal, chairman, TeamLease.

Communication skills, basic computer literacy – softer skills will become critical for gaining entry into this class. Madras University has made it mandatory for postgraduates to clear a course on soft skills. CII in partnership with BPO firms is helping train 250 teachers in Chennai for the course. After the pilots, the course will be made mandatory for the undergraduates as well.

There's another potential area of change in the SME segment. Forty per cent of the white-collar workers are from SMEs where productivity and efficiency levels are poor. The survey reveals that on an average, one senior manager manages only six white-collar workers, the ratio getting better with size. "I see that already changing," says B Santhanam, chairman, national committee (HR), CII.

Absence of processes and lack of standardisation means higher level of human intervention required – this is what explains the poor manager-worker ratio. Smaller companies, growing rapidly, are actively looking at automation and outsourcing of non-core functions to improve efficiency levels. "This is the only way they can handle growth, attrition and employee aspirations, they realise," says Santhanam.

Overall, only 30 per cent of the whitecollar worker households come from multiple income households (read working spouse). This dips further in the government and PSUs to 20 per cent of the families as against 33 per cent in the private . Further, most under Rs 20,000 income households are single income and the likelihood of it being multiple income rises as one moves up the economic ladder. Both the drivers for a working spouse – better incomes and more private sector jobs – will only strengthen in future.

But what doesn't seem to be changing is the geographical skew in jobs available for white-collar workers. So far it's the government and PSUs who have been the biggest creator of these jobs in the north and east whereas private sector has dominated the south and west India (66 per cent of the jobs). As the government vacates its role in larger number of economic sectors and private sector jobs outpaces them, this skew will intensify in future . "You will see lot of political reaction on issues like reservation etc going forward ," says Abheek Barua, chief economist , HDFC Bank.

Simply because a large chunk of new workers will come from the northern and eastern part of the country where fertility rates are still higher whereas more jobs will be created in the west and south. But remember, a large part of India's workforce will remain in the self-employed segment, warns Ajit Ranade, group chief economist, Aditya Birla Group. Poorer BIMARU states like UP and Bihar, with weak educational infrastructure and even weaker job prospects, are adding more workers.

The transition from blue to white will be a long and ardous journey.

Courtesy: Economic Times

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1 comment:

Abhinav said...

right said bro.....i was quite compelled by your thoughts