Friday, January 11, 2008

Running around for your to-be-paid money

Employee referral schemes are one of the most lucrative tools used by organizations to get cheaper and of supposedly trusted credentials new joiners. Cheaper because the amount paid to you as referral bonus is lesser than what they pay to a placement agent and of supposedly trusted credentials because if your referral’s background check report is negative, you also fall into the firing line.

So when I referred someone to my previous employer and just in the nick of time fulfilled the covenant of both of us being on payroll for the required period of time after the new recruit joining, I was eligible for a decent bundle of green papers. I met the concerned recruitment person before my name was deleted from the payroll and I was promised to get this with my money with my ‘full and final’ settlement. Since then, I have learned the word bureaucratic circle quite well.

For the people who think I am a millionaire having a money machine printing notes, the story has a different shade. It’s like our economy growing at phenomenal rates and inflation pushing the poor to the darker side. Over the last six and half years since I started earning to three years back, two starts of my earning-life, my in hand salary has increased 4 times. But ‘starting-to-wait-desperately-for-the-salary’ period has dropped down from 25th of the month to 15th. In last three years, my in gross has almost doubled but the same period has dropped from 15th to 5th. Not sure if I should pray for a hike or reduction to push the calendar back.

Coming back to the end of penultimate paragraph, the circle doesn’t seem to end. Recruitment team forwards my mail to HR, which in turn sends it to administrative department. The admin guy tells me to wait for next fortnight when the payout is scheduled. When the payout is not made, I again send a mail to the recruitment guy and for the rest of the process, please go to the start of this paragraph. Finally I dropped a mail to some senior guy and for what-happened-next, please go to the start of this paragraph.

Now come to think of it. If I was made the payment on the very original scheduled date and I had invested it in stocks, I would have gained anywhere close to 20% to 150%. SBI magnum would have given me an annualized return of 50% plus and even my bank would have swelled the amount by 3-4%. Instead, I have paid close to 1-2% of the total amount in making phone calls and time-converted-money.

I have always wondered, when I quit a job my salary is stopped during the notice period and paid as full and final settlement. I agree with the operational side of it. But the organization is still depriving me off my money and time value of it for a good 30-45 days. They don’t pay a penny as interest for it. Isn’t it one of the most neglected crimes done at organizational level?

Being intellectually challenged, my mind fails to think beyond the world I have seen. So let’s take an example referring to any of the IT giants. For an organization populated with 20,000 heads, it is safe to assume that real attrition rate is 20%. Which means around 4000 leave the organization every year or 300 every month. Assuming an average monthly salary of 25,000, the amount comes to be 75, 00,000 which is delayed by at least 60 days in the name of operational issues – 30 days of notice period and 30 days after which the payout is made. In the current market scenario, one can easily find out a venue to give 10-12% of returns. Assuming 10% of return, it comes to be 750,000 per annum means at least 2 employee for free that too with extremely conservative outlook. I am sure this is tax free as well. Is there any lawyer out there with some personal vendetta against the corporate world dying to do some social service?

The post is an innocent attempt to vent out my frustration. Please pardon my inability with mathematics, disability with finance and lack of ability with English which is a must.

In case you belong are a part of bureaucratic circle I am running around, please make sure the payout is made this time.


MrB398 said...

Thats just the way things are today. Select few people have made the need to run a background check on everybody for everything.

MrB398 said...

Thats just the way things are today. Select few people have made the need to run a background check on everybody for everything.

Sachin Gulhane said...

One thing is sure , If MD happen to visit this page , your pay out is will be held hanging for atleast one financial year ... C'mon ... I mean he is the man "bureaucrat" in this episode and you did not mention his name at all... Most of the time BAD boys do dirty work to get good publicity :)