Can a strong culture be too strong?
Parivar was growing in its revenues, profitability and building its reputation, and increasing above second-tier IT services companies. However, Parivar is at risk of facing the problem of losing employees.
Firstly, the number of employees who quit is much higher than the figure for hiring, the percentage of its turnover stood at 35%, and there are more than 100 employees giving notice in recent weeks.
Secondly, expectations of Parivar’s culture may attract potential employees but cannot keep them, especially when competitors offer a 30% pay increase.
Thirdly, Indira and her team, with some employees, suggested the idea of the People Support program, which allows the company to keep and attract the right employees; however, Indira, Vikram and Kumar claim that there are fewer benefits from this program and the family working environment is ineffective.
The problem statement is how the company can win new recruits and keep good employees to ensure sustainable development in the long term.
It has been suggested that the compensation at Parivar stands at lower levels. However, in fact, Parivar was still a Tier-II IT company operating based on higher revenues, profits, and reputation, but it was still much smaller than the likes of Infosys and HCL. Hence, a healthy and proper organisational culture promoting openness and creativity plays a vital role in keeping the best employees.
The People Support program is currently at the idea stage, and the exact implementation details need to be provided. There is no mention of how Parivar will rope in so-called ”listeners” and how to evaluate their performances. Amal, during his exit interview, also suggested the possibility of personal intrusion and Indira has to try to put forward a perfect balance.
The solutions are suggested to resolve conflicting values.
People Support Function
Firstly, accepting Nisha’s idea and implementing the people support function is possible to solve the contradictory value. ” Listener” is a part of the People Support function that allows the employees can approach in case of any problem or dilemma. The listeners would help them to negotiate with the boss and provide practical measures to the issues.
The listener would act as a moderator to connect between the employees and the management. People support function includes a package of expected positive and negative effect on the company’s current situation; there were chances that the issues of employees were mitigated and fixed, leading to high employees’ satisfaction.
Increase in the Pay
Secondly, a viable solution is to increase the pay in line with competitors. It can be seen that the primary reason that leads to losing employees is a higher salary of 30% is offered by competitors. Increased pay is a method that could reduce the turnover rate, which was 35%, and, as a result, decrease the cost of recruitment and training. The combination of family culture and high pay is the best way to keep employees and enhance their satisfaction level.
However, as a small company, Parivar cannot afford to increase the salary of all the employees as compared to competitors did. Thirdly, another solution is outsourcing HR practices. Many employees are not willing to accept family culture in work because they don’t like too much intervention in their private life.
Employees do not want to feel like part of a family at work. People can solve their problems through this agency with more freedom. The agency also inhibits favoritisms. The external agency can spend more attention on employee issues more appropriately, as they have no personal relationship with Parivar employees.
Fourthly, increasing payments may create motivation for the employees to, as a result, improve their performance of the employees. Besides, it would increase the faithfulness of the employee towards the organisation because they feel that the company looks after them.
Moreover, it could also create rivals among the employees because they are more likely to think they will receive more benefits if they devote more effort to their work. Finally, a professional culture is an essential factor in making a competitive advantage that allows the company to support its high growth, especially in western working environments such as the UK or US.