Hiring is predicted at 64 per cent for the next quarter, as the pharma sector is seeing a lot of growth in the market with new tie-ups
Viveka Roychowdhury – Mumbai
Every April, employers and employees across sectors gear up for the annual appraisals. With the 18th edition of the Antal Global Snapshot released in November last year predicting that the pharma sector will be in buoyant mode, average increments are expected to average around 13.5 per cent, according to Mayank Chandra, Managing Partner, Antal International, Lucknow.
Hiring is predicted at 64 per cent for the next quarter, as the pharma sector is seeing a lot of growth in the market with new tie-ups. Roles in clinical research and quality are growing, according Chandra.
One of the fallouts of the appraisal cycle is employee dissatisfaction with the results of the evaluation. Attrition levels thus spike post appraisal as “employees who look for greener pastures are either not happy with increments and seek elevation. Job satisfaction is lacking. At times, employees move due to location preference,” explains Chandra.
He suggests that like other sectors, pharma companies can bridge the gap between employee expectations and reality by maintaining a smooth flow of communication. The November 2015 Antal Global Snapshot predicts attrition will be at 12 -14 per cent in the pharma sector.
Some sectors have seen counteroffers emerge as a way to retain talent but this is double edged sword as such offers could demotivate the rest of the workforce. But Chandra disagrees with this reasoning saying, “Counteroffers do not demotivate other employees. On the other hand, the practice encourages other employees to also indulge in the practice of bargaining with current employers by dangling the threat of moving out. In fact the entire harm is borne by the company which puts itself in a negative position and shows weakness of the management and their dependence on the people. In fact few large MNCs are increasingly going the ‘no counter offer’ way just for these reasons.”
Increments in the sector continue to be in the traditional ‘cash in hand’ format rather than other modes of increments like ESOPS, which are favoured by in sectors like IT. According to Chandra, “Very few companies in the pharma sector follow the practice of giving ESOPs. As a general rule people prefer increments – cash in hand, and the same is being followed this year.”
However, some changes in the formal appraisal process have crept in. Chandra has observed that most companies have adopted personal interactions over traditional appraisal procedures over the years. This is to ensure each employee has a clearer view and understanding of his/ her performance and career progression.