N 2003 Infosys found that there was significant discontent in its workforce.
The internal employee satisfaction scores showed a 31% decrease in employee satisfaction, a 28%decrease in advocacy, a 28% decrease in loyalty, and a 28% decrease in confidence in senior leadership within the firm.
All these caught Infosys to fall from the best employer rankings.
Hema Ravichandar, Infosys head of the human resources, was called upon to restore the company to top 10 status as an employer. First she analyzed the reasons for this drop.
Except for objective and unchangeable reasons, she found the most serious problem is the increasing disconnect between Infoscions and their middle and upper managers.
Employees felt that managers were out of touch.
Immediately Hema Ravichandar and her team began working on several initiatives, including improving communication, fostering empowerment and trust, strengthening internal communication, and compensation reform. The effort began
by creating a policy council, chaired by HR, to deliberate all future proposed policies from the employees’ perspective. Its responsibilities included taking feedback from employees
and vetting the policy definition and communication that went out to employees.
Since many managers within Infosys had very little management experience, Hema created training programs including training in cross-cultural management, dealing
with sexual harassment, creating safe work environments, and listening and responding to employee concerns. HR staff members were also assigned to business groups effectively
decentralizing the role of HR and making it part of line operations. These staff members reported directly to line managers, but reported indirectly to the HR group as well, providing HR support directly to those managing large numbers of people.
Employees had also reported feeling a lack of empowerment within Infosys. So a team was formed that to research issues and make recommendations on how to improve the compensation system. They discovered that Infosys ’promotion system was too hierarchical and decided that
flexibility needed to be added so that employees could choose the most appropriate career paths. Finally, managers were given more authority to make decisions regarding their subordinates and their assignment to overseas projects, which had been seen as a major perk among employees.
By 2004 these initiatives had resulted in significant changes within Infosys, with the company returning to Business.