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Value-based HR development

WORK CULTURE: Baan Info Systems India

Srinivasa Rao Dasari / Hyderabad

Baan Info Systems India, a wholly-owned subsidiary of SSA Global Technologies, has adopted a value-based system in its human resource development (HRD) strategy that treats all employees equally. The company believes in offering long-term career options to its employees. The company wants that its employees should stay with the company for a long time and share its growth prospects. At the same time it doesn’t compromise with the quality of manpower and hires the best fit for product development activities.

Baan develops end-to-end business solutions in ERP, CRM and SCM space using cutting-edge technologies. Manufacturing industries across the world use the solutions developed here. Baan India was established in 1986 when the company opened a dedicated customer support centre in Mumbai, and by 1995 Baan’s Indian presence had expanded to include offices in Mumbai, Delhi, and Hyderabad. Today the Hyderabad and Mumbai centres focus on development and support, while sales, consulting and service centres operate from Mumbai, and Delhi, responsible for license sales, customer support and consulting in the Indian sub-continent (India, Sri Lanka and Bangladesh). The Hyderabad centre is one of the biggest global development centres for SSA. The global support centre provides second line support to customers world-wide.

Hiring the right fit

The company hires both entry level and experienced professionals. Instead of advertising, the company prefers referral-based hiring. Even while inducting trainees, Baan prefers the referral-based recruitment system rather than going to

universities and institutes to

conduct campus interviews. The induction programme comprises company orientation and training on domain specialisation. Usually, the training programme is conducted for a period of eight weeks and seniors mentor new techies. During the training period, the company evaluates candidates, and after going through soft skills training the new recruits are put on projects in real-time work environment.

With freedom comes responsibility

“Our HR policy is largely performance-driven without much hierarchy levels in the working environment. Anyone can directly approach anyone, irrespective of the position. We don’t have any monitoring control on the movements of employees. Internet access is not restricted in the office and there is no policing of e-mails. We treat our employees in a way that makes them feel more responsible. The company provides them latest tools and the environment for working comfortably. We know complete details about each and every employee, including family problems. We take a lot of care to ensure a healthy work culture in our organisation,” says Abhay N Rao, general manager (HRD), Baan Info Systems India.

The company invests a huge amount on training employees and reviews the investment. Based on employee needs, the HR department customises the training programmes. It has an Individual Development Plan (IDP) to enhance individual performance and this appraisal is done twice a year.

“Baan is an application development centre and our employees are not just programmers. Business knowledge is therefore very important for them. In services segment, a few weeks are enough to make new employees productive, whereas in product development companies like Baan, it takes longer time to make them productive. Our employees work in a flexi-time environment, without any timing restrictions on working hours. Attrition rate is very low at 5 percent to 8 percent and sometimes it shoots up since the demand is greater than supply. Our employees are in great demand in the job market. A stint in Baan adds weight to a resume with companies seeking their services,” adds Rao.

“The reason is simple—the quality of training we provide and the international projects on which our employees work. On one hand, it is a pride and on the other it is a concern too. We identify the key performers and encourage them by writing letters of appreciation and other measures,” says AV Ramam, vice president of Baan Info Systems.

Benchmark salaries

The company has benchmark salaries, which are higher than the industry average. Unlike many organisations, Baan does not have an ESOP policy. “ESOPs don’t give much value-for-money. ESOPs today value a lakh rupees, but might become zero another day. We do a salary survey on cost-to-company (CTC). Base salary and all accruals and benefits are factored in before arriving at a cost. At Baan, the basic salary is pretty high and this takes care of other benefits like ESOPs, etc. The salary structure has been designed to ensure maximum take-home salary. We never do poaching and don’t insist on bond agreement by employees. We request our employees to honour the notice period and complete projects under development,” explains Abhay N Rao.

Employee welfare

The company believes that transportation is more important than any facility offered to employees. It has tied up with banks like the HDFC and ICICI to offer financing schemes for employees who want to buy two-wheelers. It also subsidises the loan cost. Since a majority of employees are very young, the company does not need to give any special attention to their children’s education needs. It encourages employee-driven clubs to organise social events and charity programmes.

The company encourages its employees to get international certifications like Project Management Professional (PMP) and (CSQA) Certified Software Quality. It reimburses the fee for those who qualify in the examinations.

Baan employees have witnessed two acquisitions since inception. Invensys acquired Baan in August 2000, next it was acquired by SSA Global in July 2003. “There was no negative impact on employees at the time of acquisitions. In particular when SSA took over, employees felt happy and the acquisition was well accepted,” points out Abhay N Ram.

 

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