The Hindu : Business : Employee confidence critical for survival

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Thursday, Jan 08, 2009
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Employee confidence critical for survival

V. Sridhar

BANGALORE: Commenting on the Satyam Computer Services crisis, Manish Sabharwal, Chairman of TeamLease Services, a staffing company, said the Satyam’s interim CEO needs to “take swift and deep action” so that the combination of loss of investor and customer confidence does not result in loss of employee confidence. He said the success of IT service companies does not merely depend on the “equity on their balance sheets,” but on the quality of their workforce.

Speaking to The Hindu, Mr. Sabharwal said, “The fixed assets of an IT services company forms only a small percentage of its value.” Such companies would be “worthless without the confidence of its employees.”

“If employees’ confidence is lost that would be the end of the road for the company,” he added. The “intellectual value” of employees constitute tangible value for the company, Mr. Sabharwal pointed out.

On the outlook for Satyam, he said the company’s “talented and honourable workforce” would be taken taken over by its rivals if employee confidence was not given a boost quickly. He said the interests of the company’s employees would be best protected by a ‘quick takeover’ by a rival or by the new management team’s ability to retain the customer base.

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