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FMCG cots are now youth-oriented
Linking HR business strategies has been the greatest learning for companies across sectors. While it has been imperative for the services, others sectors such as FMCG, have learnt a great deal from it. Milind Sarwate, chief, HE and Strategy, Marico Industries, discussed with Shreya Biswas about the trend, and how the], 700-employee strong FMCG major has matured as an employer brand.
IT-ITeS have been at the forefront of innovation in HR during the last 10 years. What has the FMCG sector learnt from it?
The most visible retention tool deployed by IT/ITeS companies is wealth building through stock options (ESOPs). ESOPs have also been in the limelight because the rating of the IT industry itself has moved up on the stock market over the years. There have been many start-ups, which have made their employees wealthier because of ESOPs. For the FMCG sector, the prospects of wealth building through re-rating of stocks may be low, but many have initiated wealth-building measures to compete with the IT/ITeS brigade. The IT/ITeS industry has been one of the first beneficiaries of Indian youth arriving on the global stage. Spurred by this, FMCG companies too have become more youth oriented.
When did you actually start linking your HR strategies to business strategies?
The trigger came after an intensive workshop in 1999-00 with Professor Wayne Brock bank from the University of Michigan. During that session, we identified sources of competitive advantage for Marico-branding, distribution, cost management and innovation, besides technology, as the group entered skin care services through Kaya. We decided to focus organizational energies, especially HR efforts, on these areas of competitive advantage. In the years to follow, most of our HR initiatives centered around the four areas. We ensured competitiveness in terms of people (remuneration and quality) and HR team was involved with business projects in these areas. HR initiatives not connected with business strategies were scrutinized for relevance and dropped if not relevant.
How is empowerment defined at Marico?
Empowerment is a philosophy practiced in Marico across levels. Decisions are taken at the lowest level possible. To cite an instance, last year, our acquisition team comprising International Business and Finance staff could conceive and execute our second acquisition in Egypt (Hair-Code) in just about 3 months, without any direct personal involvement of our chairman and man-aging director. This is quite rare for an entrepreneur-owned and managed company in India.
We have heard a lot about the attrition of white-collar workers a lot, how have the blue-collar staff fared on that front?
The attrition rate for the backroom has moved up in recent years. Currently, it would be around 25% against 15-18% about 3 years ago. The attrition is somewhat higher at higher levels of management because the broader skill set at that level enables greater mobility.
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