Job Losses: India became the US without becoming the US

A retired man said the above to me about job losses. This applies to the job sector. He was alluding to the fact that “he is hearing so many people being fired (hire-and-fire, thus – ‘became the US‘) from their jobs in India, but there is no social security net (like unemployment allowances in the US, thus – ‘without becoming the US’). People are left to survive using their savings even after paying hefty taxes in the earlier months.”

Is he right? What would you say to him?

One Life. Live Boundless.

Comment 1 (By KB): I would agree with the thought expressed by your friend. We seem to pick the worst practices from others to implement. As a country, we do not have a Social Security network or unemployment benefits. If you get laid off, the next employer looks at you with utmost suspicion, assuming it was your fault, whereas in other places it is accepted as a part of business. Gaps in employment for whatever reasons are frowned upon.

Comment 2 (By UD): Indian bosses hire people like me at Leadership levels like GM/VP/CEO etc and don’t give the leaders the freedom to hire good candidates from market. The HR filters resumes which are internal WE, and not market savvy, and these WE have fudged credentials and CV. The HR doesn’t give access to recruitment portals or vendors. Hence, leaders are forced to select people from within the Internal WE, who are incompetent. Plus, the budget is also not given accordingly as per designation. Most GM etc are shit in India. They are like Tech or Team Lead of my batch. Aren’t GM or Leadership material. CEO don’t have vision and are called CEO. Designations and roles in India are an eyewash. There was more empowerment for me as Executive in Tata Finance in 1997 or PwC Consultant in 1999, compared to the GM/VP/CEO of this New India. Shame on duplicate people of New India.

Comment 3 (By UD): He is right. I have been saying exactly this for many years now. There are multiple points. For people who have paid hefty taxes, there should be unemployment insurance employees can buy during their heydays so that they get a lumpsum. Otlr there can be outplacement services from the HRD ministry in collusion with placement consultants. Or the minimal the government can do is to exempt people from tax, if they have paid hefty taxes for a certain number of years. In India, hiring and firing has become very common and is exploitative. I was Program Manager In TechM in 2005, and was in UK, and we had a problem with a vendor charging for professional services for a lousy product which we had implemented at BT through TechM. The Mahindra leadership pipeline guy told me to hire the vendor’s developer of professional services, and fire him citing non-performance after 6 months once project is over. I did otherwise because I didn’t want yo ruin someone’s life and career. I myself have seen some nasty situations at workplace where my Vodafone hired me at Leadership levels, and then refused to believe my CV, credentials and experience. I had to move on. Very unfair environment in India.

Comment 4 (By UD): Agree. India is adopting western practices without providing safety net. And, Indian Middle class got over excited at turn of century and borrowed money on cards to fuel consumerism. The average debt per capita, increased 10 fold in India between 2003 and 2013, while income didn’t even increase 3 fold. People bought huge cars, and large houses with EMI. This also fuels speculative trade ilon derivatives built on receivables and leads to banking crisis. Similar to Lehman in US. But, Indians took a while to understand this.

Comment 5 (By AP): True, a brutal reality of any developing country / economy….

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