Hrm Practices at Infosys
Human Resource Management Practices in
Infosys
INTRODUCTION
"Our assets walk out of the door each evening. We have to make sure that they come back the next morning."
(Narayana Murthy, CEO Infosys).
Infosys technology, a leading software company based in India, was voted as the best employer in the country in many HR surveys in the recent years. The company is well known for its employee friendly HR practices. Though Infosys has grown to become a US $ 2 billion company by the year 2006, it has still retained the culture of a small company. Infosys attracts the best talent from across the country and recruits candidates by conducting one of the toughest selection process. Infosys was one of the first companies to offer ESOPs to its employees. The company followed variable compensation structure where the employees' compensation depended on the performance of the individual, the team and the company. It also very tackles the challenges faced by the company to retain its talented workforce.
At a time when organizations are debating the strategic importance of their human resources, Infosys, a consulting and software services organization, includes its human resources on its Balance Sheet to affirm their asset value1. Mr. Mohandas Pai, the Chief Financial Officer of Infosys, provides a rationale for this practice:
"Investors examine financial and non-financial parameters that determine long-term success of a company. These new non-financial parameters challenge the usefulness of evaluating companies solely on traditional measures as they appear in a typical financial report. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organization. Our representation is based on the belief that intangible assets provide a tool to our investors for evaluating market-worthiness of Infosys."
As a knowledge-intensive company, Infosys recognizes the value of its human
Infosys
INTRODUCTION
"Our assets walk out of the door each evening. We have to make sure that they come back the next morning."
(Narayana Murthy, CEO Infosys).
Infosys technology, a leading software company based in India, was voted as the best employer in the country in many HR surveys in the recent years. The company is well known for its employee friendly HR practices. Though Infosys has grown to become a US $ 2 billion company by the year 2006, it has still retained the culture of a small company. Infosys attracts the best talent from across the country and recruits candidates by conducting one of the toughest selection process. Infosys was one of the first companies to offer ESOPs to its employees. The company followed variable compensation structure where the employees' compensation depended on the performance of the individual, the team and the company. It also very tackles the challenges faced by the company to retain its talented workforce.
At a time when organizations are debating the strategic importance of their human resources, Infosys, a consulting and software services organization, includes its human resources on its Balance Sheet to affirm their asset value1. Mr. Mohandas Pai, the Chief Financial Officer of Infosys, provides a rationale for this practice:
"Investors examine financial and non-financial parameters that determine long-term success of a company. These new non-financial parameters challenge the usefulness of evaluating companies solely on traditional measures as they appear in a typical financial report. Human resources represent the collective expertise, innovation, leadership, entrepreneurial and managerial skills endowed in the employees of an organization. Our representation is based on the belief that intangible assets provide a tool to our investors for evaluating market-worthiness of Infosys."
As a knowledge-intensive company, Infosys recognizes the value of its human