On an average, since 2009, the proportion of people who are changing jobs cautiously has increased up to 50%, compared to the pre-slowdown period, GlobalHunt director Sunil Goel said
Mumbai: Job-hopping tendencies in the country have declined post the global economic slowdown, in light of huge lay-offs where employees who switched jobs frequently paid the price, reports PTI quoting an executive search firm.
“Now most people do not want to change jobs for the sake of changing, unlike in the past. This is because people who were changing their jobs every 6-9 months were the first to be laid off during the slowdown,” GlobalHunt director Sunil Goel told PTI.
On an average, since 2009, the proportion of people who are changing jobs cautiously has increased up to 50%, compared to the pre-slowdown period, he said.
“This trend is visible across sectors especially in mid and junior levels,” he said.
During the slowdown, Mr Goel said, even as the lay-off rate in India was not that high compared to other nations, sectors like banking, financial services and insurance (BFSI), retail, hospitality and IT (to some extent) were the most affected.
On an average, the lay-off rate across sectors during the slowdown was 10%-15%, he said.
“Job-hoppers paid the price of instability. Learning from that, people want to stick to their organisations as long as they can,” Mr Goel said.
Before the slowdown, the job market was buoyant and there were plenty of jobs available in every sector, he said, adding, “There was a war for talent and sectors like IT, telecom, BPO and BFSI saw a high percentage of people changing jobs.”
In terms of advantages, job-hopping also did not prove to be as lucrative as people are generally unable to generate incentives for first two quarters and also lose out on long term-benefits in their previous organisations, Mr Goel opined.
“On actual terms, they are not losing percentage of salary hike by sticking to an organisation for long. And if we calculate the quantifiable net gain, they do not lose anything by being loyal to their organisations,” he said.
Sticking to an organisation, he said, proved as a win-win situation for both an employer and an employee as a new association is usually a painful phase for both sides.
“New people are not able to contribute to the best of their capabilities and from an organisation’s perspective, a company ends up in paying for the hiring cost as well as on induction, technology and development and to integrate a new person into its system,” he said.
Employers’ reaction is, therefore, positive as they hold and retain people and in return, usually, employees do not lose out on the benefits, he added.
Apart from gold funds, foreign funds—especially those that invest in Brazil—seem to have become the flavour of the season
DSP BlackRock Mutual Fund has filed an offer document with the Securities and Exchange Board of India (SEBI) to launch three global funds—DSP BlackRock Latin American Fund, DSP BlackRock World Agriculture Fund and DSP BlackRock New Energy Fund. All three are open-ended fund of funds (FoF) schemes investing in international BlackRock funds.
Global funds offer diversification benefits, by investing in stocks (bio-tech, technology, energy, agriculture and mining etc.) which an Indian investor may not be able to buy by just investing in domestic schemes. However, funds that put your money in other countries don’t necessarily offer another round of diversification. In fact, markets in countries around the world have been moving in sync. In April 2009-March 2010 the Sensex was up 77% while the MSCI Emerging Markets Index was up 74%. Non-correlated market movement is not easy to find. This is because an enormous pool of global capital is sloshing around the world looking for a slightly higher return. As with other kinds of products, foreign funds are not about returns alone. There are risks too. You are exposed to all kinds of risks unique to different countries, plagued with their own set of issues.
In 2007, as many as eight funds were launched that planned to invest overseas. These eight funds, on an average, have given returns as low as 0.1%. These include ICICI Prudential Indo Asia Equity Fund-Ret with 2.6% return; Birla Sun Life International Equity Fund-Plan A (-0.7% return); Birla Sun Life International Equity Fund-Plan B (-1.6% return); Kotak Global Emerging Market Fund (0.4% return), Fidelity International Opportunities Fund (8.7% return); Tata Indo-Global Infrastructure Fund (-7.5% return) and BNP Paribas China-India fund with -3.4% return.
DSP BlackRock Latin American Fund plans to invest in units of BlackRock Global Funds Latin American Fund (BGF-LAF). It has given a return of 14.61% over the last 5 years and 15.27% since inception (3 January 1995). This fund is in turn benchmarked to an index known as DAX Global Agribusiness which has given a return of 13.37% in the last 5 years and 13.31% since inception while the Sensex and Nifty have returned 11% (CAGR, Compounded Annual Growth Rate) over the past 5 years. And the Sensex and Nifty have returned 10% (CAGR) since January 1995.
DSP BlackRock World Agriculture Fund plans to invest in units of BlackRock Global Funds World Agriculture Fund (BGF WAF). It has given a return of 20.29% since inception. This fund is benchmarked to an index known as DAX Global Agribusiness, which has given a return of 21.14% since inception.
DSP BlackRock New Energy Fund plans to invest in units of BlackRock Global Funds New Energy Fund (BGF-NEF). It has given a return of -4.32% in last 5 years and -5.76% since inception. This fund is benchmarked to an index known as MSCI World Net Index which has given a return of -0.03% over the last 5 years and 3.75% since inception. As you can see, the performance of BlackRock New Energy Fund is not very exciting, to say the least.
Another issue is that it is hard to find the details of where exactly your money is being invested. Even Moneylife could not find sufficient data to analyse these international funds. We could only get the details of BlackRock Latin America fund. The top five holdings of BlackRock Latin America Inv A are Vale S.A. ADR, Petroleo Brasileiro SA Petrobras ADR, Itau Unibanco Holding SA ADR, Bank Bradesco ADR (all from Brazil) and America Movil S.A.B. de C.V. ADR L of Mexico.
Himanshu Chakrawarti replaces Srikant Gokhale
Mumbai-based The MobileStore, a mobile solution retail chain of multi-brand and multi-service telecom outlets and part of the Essar Group, today announced that Himanshu Chakrawarti has taken over as the new chief executive officer of the retail chain.
An alumnus of IIT Kanpur and IIM Bangalore, Himanshu joins the Essar Group from Tata-owned retail chain Landmark, where he served as the chief operating officer. He replaces Srikant Gokhale, who has moved on to pursue his other professional interests.
“We are very happy to welcome Himashu to the Essar family. Himanshu brings with him a rich exposure of multi-category retail, having handled a purely private label business (Westside), a supermarket/hypermarket foray (Star Bazaar) as well as a niche retail segment (Landmark books).
Himanshu will provide vital strategic lead to take The MobileStore to the next level of accelerated growth, which now includes consumer durables and information technology retail also,” said Alok Gupta, CEO, Essar Retail.