Life

Before I started this company 5 years back, I was just like most of you – a frustrated employee – because of the careless, rude and selfish management. I always used to feel I used to get ‘peanuts’ compared to what company makes out of me.

After a long trail, through the rough and tough time of the business problems, now I know why all company management become rude, selfish and doesn’t care about their employees.

I started this company with a dream to share all the profits to all employees and me being one of them. I hired several people that range from college-grads (fresher) to senior programmers. Most of them were either rejected by a big company at the time of campus placement, or people had no job sometimes. I still remember giving job for my friends and friend of my friends who were suffering since they had no job or had a poor job. I interviewed them, kept them on my payroll and trained them. I admit that the stipend was small, but it was something than nothing. I had to take an additional risk and occasionally I had to cut my pay several months to pay them. I had to buy computers, furniture and other expenses to maintain them on my team. I trained them to write programs, slowly put them in to client projects, supervised by senior people and pay them more gradually. All this I did thinking that I can use them and get their commitment for long term and I can relax after they can start looking after the projects running.

I of course have several other members in the team who works for the client, in their case also, they are here since they love the job / project or they used to get paid far less than what they are getting now. They were very new to several things we develop here, and they have learned to develop real-life applications after joining here. Everything goes fine until, they complete first year at my company. After that they start feeling – I am technically very sound now, I am getting ‘peanuts’ here, I should be really getting may be double or triple of what I get now. They do not realize that the effort I put in to make them to this level thinking that I can put the project on his shoulder when he can stand up. They just dump what ever we did, and start looking for better jobs. That makes me repeat the same story again – hire a guy, train him on project, and get him a good placement

It normally starts when one of the team mates get a better placement with a big company, almost paying him more than double that normally we pay. I am not questioning their freedom to choose their jobs. But it should not be by forgetting what all you have got benefited by the company you were working for. The moment people leave a company, he/she starts asking his previous project-mates, “Why are you suffering here? Can’t you find a good job?” 

Let me ask you, my friend, I had heard several times that you thanking me for offering this job and telling me how happy you are for working here. How come it became a “SUFFERING” all the sudden? Don’t you feel same suffering again – after getting another job somewhere else? So where are you heading to? Where do you think you are not going to suffer? I had an argument once with one of my ex-employee who works now for an Indian multi national company (MNC) as a project lead, who has already changed his job twice in last 3 years. He asked me what did he get from my company – I told him, in simple words, you are now working for that MNC is just because you worked on my project. Never forget that.. Don’t forget your roots. You could stand in front of them with this experience just because you worked here.  He was working for a small local software company which was developing small shop / inventory software and after joining my company; he has got experience with international clients, new technology and what not. What he gained is his trump-cards for the interview… the legs to stand in front of a big company like that for the interview. You should never forget that.

This happens to me since I think, I am very kind-hearted and I continuously offer my helping hand with out any hesitation when some one needs help. I have learned in a hard-way that I should change, like anyone else. I used to pay my employees on time by taking loans when the funds are short, or transfer from client account delays, and I gave them all freedom they needed; they could work anytime they wish, they could take off anytime –provided it gets compensated. I am more like a friend than a boss to them. Even after that, the dedication and pay-back you get is almost none. After they get their experience they become most self-centered and they switch job with out any other considerations, like the status of the project or other consequences to the company. In that case, why do I have to suffer to make them happy anyway? Being nice or being rude is not going to make any difference on their attitude. So why don’t you be rude? At least you will not feel bad when they chuck you for better offers. Why don’t you be selfish, and make your family happier before you make your employees happy. Why you have to worry about their personal commitments or engagements? You just need to make sure that you are getting your deliverables on or before time, even if they suffer and work overtime. You should concentrate on only PROFIT. Not on well-being of your employees. I realized that I should slowly become like any other management – being concentrated only on profits, otherwise, I will fail.

I can’t always complain employees only. The advantage they see is a better pay, better infrastructure, and better status in the society and in some cases chances to work abroad, which a small software company like mine can not offer. As more multinationals open development centers in India, or Indian biggies (all together termed as MNCs), it is now harder for small or medium size companies to retain people. MNCs can always afford to pay better, not because of their financial muscle, but because of the nature of their relationship between the parent company and its center here. They pay anywhere from $1000-1500 per head for a person having 2+ years experience, which is far less than what they spend for a programmer in USA. Let us say it costs a company $7000 for a programmer per person month in USA, they are saving almost $5K per person month. On the other hand, small software companies, charging from $8-20 per hour make an average of $5000 per month, can’t pay out entire money to people as we need to make profit and meet daily expenses of the company etc. Salaries are likely to continue rising. MNCs buy out all the possible man-power with at least 2 years experience and that puts several small players like me in trouble. When my clients ask me to find out good people ready to work on the project and need 3 years experience, it is really difficult to get people here… due to following reasons:

1. I do not have a MNC brand
2. I do not have a world-standard infrastructure
3. I do not pay as MNCs do.

I am not getting qualified people, which make me to compromise with what is available; train them and get into the cycle. It is not because shortage of manpower, but because of their desire of higher salary and standards. Clients come to India since they have the cost advantages. MNCs are making the cost and affordability of a programmer huge and slowly all small software companies will start dying. After few years only MNCs and ODC (Offshore development centers) of companies directly dealing with their staff will remain, and they too will find that the cost of maintaining a team in US and India are almost same and they will shift their focus to other countries. May be when they all shift from India to other countries, they may lay-off all Indians and hire as much in the new country. Once upon, US citizens cried about loosing jobs and fighting against outsourcing, may be this is our chance, to cry about loosing jobs and US companies outsourcing to other countries.

My friends, directly or indirectly you are also part of this situation. Unless we control, this is not going to happen, you may be laughing right now for a while, but you are unaware of the danger waiting for all of us after few years.