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The way they do it at Satyam

SATYAM Computer Services treats its employees as associates of the company. This speaks a lot about its work culture. About 13,000 associates of Satyam are involved in providing IT services to more than 300 customers across 45 countries. In such a big organisation, human resources (HR) practice plays a critical role, not only in the decision-making process but also in employee welfare and development activities. The company never wanted to be the best paymaster, but it wants to keep its associates, customers and investors delighted.

Satyam broadly categorises its focus area of responsibility and accountability into three segments; associates, customers and investors. The vision of the company aims at delighting these segments. Earlier it used to be satisfaction, but with the increasing competition in providing cost-effective IT solutions, and the poaching of people, it has become a major challenge for IT companies to retain employees. This trend prompted software companies to design various attractive policies and incentives to retain their staff. Satyam therefore adopted the strategy of winning the hearts of its associates rather just confining them to the satisfaction level. Satyam's strategy is to keep all its associates, customers and investors happy. Though the task is not easy, the IT major has been pioneering with its HR practices that keep them happy.

"Increasing salaries is not the right method to retain associates. No company can keep its employees in its grip infinitely, and there is no end-point in this game. We strongly believe that money alone cannot bring loyalty, hence our strategy is that while we maintain competitive pay structures, our HR practices focus on emotional involvement, on getting attached to the company. Satyam also provides stock options to all employees even at the entry level. Moreover, performance-based stock options and incentives are being given every year. These measures have been successful in making our associates loyal to the organisation. We encourage our associates to have passion…delight with entrepreneurial skills. Our core value is entrepreneurship and every Satyamite is a leader," A S Murty, the director and senior vice president of HR at Satyam told IT People.

The company critically evaluates its functioning style in executing projects in time. It aims to make the customers and associates happy at the same time. Within the organisation, each department also considers others as customers, and every project leader is a business manager for his team. It has formulated an Associate Delight Index (ADI) to measure key parameters such as performance, job satisfaction, commitment towards the organisation, etc., and it is linked to incentives. The higher the ADI, the more will be the incentives. There is no cap on variable salary, and for business leaders, there is no cap on incentives.

Recruitment process

Identifying the right candidate and retaining him is crucial for any company to withstand global competition. Satyam follows two recruitment methods-at entry and lateral levels.

For entry-level recruitment, it has tied up with about 70 reputed institutions in the country. Usually this is done at the end of the examinations of engineering courses. During the year, off-campus interviews are conducted. Entry-level recruitment consists of an aptitude test, group discussion and technical interview. Satyam believes that hard factors (revenue) and soft factors (attitude) are both critical in assessing candidates. After the recruitment process is over, candidates are placed in different business units for about 10-12 weeks. Each unit has a HR wing and works in a partnership model.

For lateral recruitments, interviews are conducted at two levels. Usually, candidates having 2+ years of experience are considered for lateral recruitment. During 2003-04, Satyam has recruited about 4,000 associates, with 40 percent coming from entry-level recruitment.

Of the total headcount, 30 percent of Satyamites are overseas at any point of time. For those Satyamites who are about to travel abroad, an orientation programme is organised to brief them about the country they are going to visit. As part of this orientation, Satyamites will be briefed about the culture, language and etiquette.

Help desk

In order to make its associates free of house-related work such as payment of utility bills, reserving tickets for trains, etc-without any service charge-Satyam evolved the Help Desk concept which takes care of all house-related work at product cost only. The objective of the Help Desk is to create an environment for associates to concentrate totally on their projects. For those associates who have been transferred from a different city or country, assistance is also provided to help them find school admission for their children. For this, Satyam has also tied up with about six schools in the city. Help Desk Satyam has eight centres in Hyderabad alone, apart from six in Chennai, five in Bangalore, three in Pune and one at Bhubaneshwar. All these centres are electronically connected.

The Samanvay concept aims at involving the families of associates in the learning process on various issues such as health, personal finance, IT education, etc. Only the parents and spouses of associates are allowed to participate in this scheme, which is conducted once every two months. Satyam Learning Centre takes care of this and coordinates the activities. It also conducts cultural and social entertainment programmes for children of the associates.

Every year in early January, a Satyam Utsav is organised at all the centres where the families of associates are involved.

Corporate social responsibility

When it comes to social responsibility, Satyam is at the forefront creating awareness about health, education and environment activities. Satyamites and their spouses have been actively taking part in such initiatives of the company. Every Satyamite contributes Rs 20 per month to the Satyam Alambana Trust, and the company contributes an equal amount. This trust mainly focusses on urban areas.

The Bairraju Trust is a personal foundation of the promoters, and focusses on rural areas. It trains children below 15 years in IT with an aim at bridging the digital divide.

Other activities

Breaking from the routine is very important for everyone, particularly those who are part of the creative think-tank of Satyam. In order to re-energise its associates, it provides recreational and entertainment facilities at nominal charges at the Satyam Technology Centre spread over 128 acres. Here cultural events are organised on every occasion for every age group. The company also lends a hand to its associates for their financial needs.

Leveraging its brand value, Satyam has been able to arrange finance facilities for its associates at reduced interest rates. It has tied up with a few financial institutions, shopping malls and retail companies for offering discounts on shopping. To keep up the tempo and enthusiasm among associates, Satyam strongly believes in learning and offers an opportunity for them to learn different technologies in various countries.

Earlier it was a matter of prestige for parents to say that their son/daughter was working in the US. Now the more countries they travel to, the more pride for them. As part of these initiatives, many associates working in maintenance have been shifted to development and vice versa; associates also move from one package to other. The best example is Murty himself. A BTech from the regional engineering college, Warangal, and MTech (computer science) from the Indian Institute of Sciences, Bangalore, he is now looking after the HR department after working on hardcore technologies for about eight years.

Every Satyamite is a leader. To make Satyamites friendly to each other and create a no-boss environment, Satyam follows a trendy practice of calling each other-irrespective of designation-by the first name. The company also follows an open door policy. Every associate can directly access the chairman and e-mail him too. This has broken the barriers of the hierarchy system and brought all Satyamites together. For high-calibre young professionals, age is not a constraint for allocating major tasks to them. "We have young professionals in their early thirties who are managing big projects," Murty says. Telecommuting has been growing, and saves a lot of time and stress for Satyamites. The company believes in virtual leadership, real-time leadership and delegation of accountability. As part of this, every head of a business unit acts as a chief executive officer, with great freedom to run his unit successfully.

Finally, at the end of the day, everyone needs relaxation from the day's hard work. The company organises yoga, meditation and other personality development classes like the Art of Living for Satyamites.

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