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This appraisal season, Indian companies are in no mood of sparing their underperformers, especially after Wipro sacked about 600 people following a <a href="http://www.businessinsider.in/small-business/tech/wipro-sacks-600-employees-post-performance-appraisal/articleshow/58283452.cms">'rigorous performance appraisal'</a>. While Indian IT firms, financial services companies, startups and BPOs will be leading this race in being aggressive with the firing process, other sectors would also be following the same path so that they can only have the best of manpower. "Going forward, the trend will be a lot more around performance-orientation," S Venkatesh, president group HR at RPG Enterprises, told <a href="http://economictimes.indiatimes.com/news/industry/jobs/companies-take-tougher-stand-on-poor-performers/articleshow/58350223.cms">ET</a>. "People are negotiating hard: whether it's while being hired off campus or while changing jobs. Naturally, companies, too, are taking a hard line on slips in their performance," he said. RPG Enterprises owns companies like <a href="http://www.businessinsider.in/markets/Tyre-stocks-are-on-fire-today-Know-why/articleshow/48343583.cms">CEAT</a>, KEC International Zensar Technologies, and has a tendency of putting employees on performance improvement plans if need be. "The days when people joined a company only to retire from it are over," said Venkatesh. Other than performance, reduction in <a href="http://www.businessinsider.in/careers/exclusive-salary-budgets-are-slowing-down-and-there-is-going-to-be-a-dip-in-appraisals-as-per-this-report/articleshow/57287938.cms">budgets allotted for salaries</a> can also be cited as a reason behind these aggressive firing policies. In the recent past, IT majors like Infosys, TCS and Cognizant along with banks like Axis Bank and ICICI Bank have fired a large number of employees. Similarly, e-commerce companies like <a href="http://www.businessinsider.in/retail/e-commerce/Flipkart-may-handover-pink-slips-to-nearly-700-employees/articleshow/53446176.cms">Flipkart</a> and Snaodeal have also followed the path of firing nonperforming employees. Also read: <a href="http://www.businessinsider.in/Snapdeal-asks-200-employees-to-improve-or-resign/articleshow/51135067.cms">Snapdeal asks 200 employees to shape up or ship out; employees choosing latter over ‘impossible’ targets</a> However, experts are of the view that Indian companies are relatively more easygoing when it comes to firing employees, as compared to their global counterparts.

This performance appraisal period is about underperformers as well

India’s largest online marketplace <a href="http://www.businessinsider.in/searchresult.cms?query=flipkart&amp;sortorder=effectivedate">Flipkart</a> is acting tough on its underperforming employees and has asked them to put in their papers, else they will be terminated and given severance pay. 
 This decision by <keyword id="6354742" type="COMPANY" weightage="100" keywordseo="Flipkart">Flipkart</keyword>, which has nearly 30,000 <a href="http://www.businessinsider.in/searchresult.cms?query=employees&amp;sortorder=effectivedate">employees</a>, is likely to affect 700 to 1,000 staff. 
 
"The cleanup is a part of the process of making Flipkart a lean organisation," ET quoted one of the sources as saying. 
 
Apparently, this is not the first time Flipkart has come down heavily on its non-performing employees. 
 
Flipkart, in a statement, said “In situations where employees do not make progress despite being put on a performance improvement plan, they are encouraged to seek opportunities outside the company where their skills can be better utilised. This is a fairly common practice across various industries- especially in high performing internet organisations.” 
 
Not only Flipkart, even <a href="http://www.businessinsider.in/searchresult.cms?query=snapdeal&amp;sortorder=effectivedate">Snapdeal</a> is looking to do away with non-performing employees and recently as many as 200 people were asked to buckle up or move out. 
 
ET quoted a former Flipkart employee saying how roles and expectations kept changing. 
 
"I chose to resign and sent a formal mail to my manager, which was immediately accepted. While the company has been patient with its employees over the last four years, this time it was not," this person told ET. He had worked for three years in the company in several roles, with the last one in the marketplace division. 
 
"Managers should have good facts and data substantiating why a particular person is a non-performer, and base his decision on factual data. There is also a lot of referencing that happens in this space and an organisation should be helping them in that regard as well," Harish Kumar, Managing Partner at Wenger &amp; Watson, told ET. 
 
(Image: Thinkstock)

Flipkart may handover pink slips to nearly 700 employees

Start ups pay a good salary, have flexi working hours and meals are on the house with an<a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms"> open bar </a>on weekends. This is a typical <a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms">myth</a> in India about start ups and people were painting colourful pictures of the work culture. In the last few years, employees, mostly young ones, working with MNCs were lured by the perks and made a jump to one of the new start ups in India. With walls full of graffiti, and quirky designations, start up culture in India was quickly gaining throttle until all of a sudden the bubble burst happened and layoffs began. 
 
While layoffs in start ups are quite a common thing that has happened in the US, Indian start ups are entering a similar phase when layoffs are getting massive. Last month <a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms">Ola </a>shut down Taxi for Sure and lay off some 250 employees. The major one was <a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms">Askme</a>, which got shut because the investor backed off seeing no profits in the business. <keyword id="1720566" type="UNKNOWN" weightage="20" keywordseo="AskMe">Askme</keyword> closed down recently and almost 4000 employees were left without employment. What’s worse? The ecommerce company hasn’t cleared their salary for the last two months. 
 An interim order of the <keyword id="6354457" type="ORGANIZATION" weightage="20" keywordseo="National-Company-Law-Tribunal">National Company Law Tribunal</keyword> has asked <keyword id="3604720" type="UNKNOWN" weightage="20" keywordseo="astro-entertainment-networks-ltd">Astro Entertainment Networks Ltd</keyword>, a major investor in Askme not to quit. However, Astro has responded that having invested USD 300 million, they haven’t seen any profit in recent time. 
 
So we investigate what’s causing the damage. 
 
Lure of extra 
Start ups are known to be good in workplace culture. A 30%-50% or even more hike in the <a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms">current CTC </a>and fancy designations shouldn’t be the one reason to quit. With funds drying up and ventures becoming cost effective, it’s the workforce that is chosen first to be culled. Founders of most of the start ups have begun from <a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms">grassroots</a> and know their job very well. 
 
Data by Xeler8 reveals that out of the 2,281 ventures that started since July 2014, at a failure rate of 43.7%, almost a thousand have shut down. 
 
 
Too many employees 
At the time of investments, everything goes well and start ups tend to recruit a lot more than their actual need. This is often because they have bigger plans. However in case the venture shows a decline in profits, they tend to get rid of the extra hires. 
 
A survey by a firm that tracks candidate movements across different hiring stages, Belong, shows that the number of joinees in ecommerce firms dipped by 61% between November 2015 and April 2016 over the May to October 2015 period. 
 
 
Underperformers are the first to get the boot Even <keyword id="6364080" type="PERSON" weightage="20" keywordseo="Binny-Bansal">Binny Bansal</keyword> of <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> has reportedly admitted that he was also removed from the post of CEO because of underperformance. In Flipkart’s list there were many others who had underperformed. But 700 people were forced to resign, while <keyword id="6442005" type="PERSON" weightage="20" keywordseo="Bansal">Bansal</keyword> stayed. Now the problem with the employees begin. Once laid off from a start up, they are offered salaries that don’t match their last ones. At 30-40% lesser figures they agree to join because they know the job market is competitive at the moment. 
 
Shifting focus 
In the initial days of start up boom in India, VCs would invest in any project that showed a potential to grow. However, investors are now showing restraint in such decisions. 
 
Start ups, as a result, are changing their focus. They are looking more towards making profit than just the <a href="http://www.businessinsider.in/Study-reveals-shocking-change-in-the-hiring-trends-of-Indian-start-ups/articleshow/50073782.cms">growth factor</a>. 
 <keyword id="646706" type="PERSON" weightage="20" keywordseo="Ravi-Gururaj">Ravi Gururaj</keyword> of <keyword id="6372077" type="CITY" weightage="20" keywordseo="Nasscom">NASSCOM</keyword> believes start ups generally fire employees under three circumstances. They either don’t have the money and need funding, or they have hired more than the need or they have different plans. 
 
Let whatever be the case, hard times like these are essential for employees to evaluate their professional skills. If one can fight the odds and survive, he would be the best fit in any industry under any circumstances. 
 
Start up industry will remain like this and people joining the industry need to be prepared for the same.

Start ups aren’t for the faint hearted. What
leads to massive layoffs in start ups

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This performance appraisal period is about underperformers as well

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Flipkart may handover pink slips to nearly 700 employees

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Start ups aren’t for the faint hearted. What leads to massive layoffs in start ups

BI India Bureau

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