In the age of Social Media companies cannot be ham-handed in handling employee exits

Much before ‘happy exits’ had become fashionable in the corporate world, HUL had learnt the trick to keep its ex’s happy and involved.

Article first published in @hrkatha.com Click here

The catch line of Hindustan Lever (I am advisedly making a distinction with the new Hindustan Unilever or HUL– old Leverites would understand why) at campus recruitments used to be “We don’t have jobs to offer, only careers”. 

The joke within the company was “HLL is a company you worked not for the salary but to die for or retire”. Salaries in those days were a pittance when compared to foreign banks and even other MNCs – the alternative destination for young MBAs. But, HLL’s superannuation benefits were the best in industry. And, in the odd unfortunate instance, when some manager passed away in harness, the company went the extra-mile to look after the bereaved family.

Just like modern marriages – professional bonds had to necessarily become flexible and open ended with changing times. So, from the 90s onwards – it was no longer “till retirement or ‘death do us part’”.

First exodus from Levers happened when Pepsi Co entered India. One lady headhunter who had earned the sobriquet of ‘man-eater’ – made not just a fortune but also her career out of those prized catches. Still such was the level of corporate chauvinism at HLL – those who quit were seen as prodigal sons of the family, who were lured by lucre.

Cynical bosses quipped disparagingly – “it is not Lehar Pepsi but Lever Pepsi”.  Similarly, Whirlpool India was snidely called Leverpool.

This was also the time there was a change of guard at the top at Levers. Correlation was automatically drawn between the new leadership and the unrest below. A business fortnightly was quick to pick up the story with a cover on ‘Lever Leavers’. Some of the people interviewed were understandably not kind to the company. They cribbed about the slow velocity of professional growth – still stuck on the old formula of people moving in ‘batches’. However, significantly what this media coverage brought home was the need for ‘happy parting’ – just as it is fashionable to say in relationships nowadays ‘Divorce – and remain friends forever’.

Cynical bosses quipped disparagingly – “it is not Lehar Pepsi but Lever Pepsi”. Similarly, Whirlpool India was snidely called Leverpool.

Till that time, in most staid old corporates official ‘farewells’ were reserved only for retiring employees or those who moved on transfers. Resignation was viewed almost as an act of treachery. It was deemed politically incorrect to have ‘send-off’ parties for those leaving the company. Sometimes, a few close co-workers would go out for a ‘parting drink’. Not any longer. Companies now sponsor farewells for employees who quit – celebrating their next ‘big-break’ - even when they are joining competition.

Organisations have realised – every separation need not be bitter. In fact – most separations these days are like divorce by mutual consent. With organisations shrinking, becoming flatter and the pyramid narrowing more sharply at the top – attrition is no longer a bad word, even in the old brick and mortar companies. Firms now have to willingly let go people, while many more – reading the writing on the wall – move on before it is too late.

In the Indian context this is a transitional phase – as companies move from a paternalistic culture to an adult-to-adult relationship mode. For those who have grown up in a benign environment – this sudden shift in gear to an emotion neutral pace can be unsettling. Separation blues are, therefore, natural. Withdrawal symptoms set in easily. Mature organisations have learnt to deal with the process intelligently and, if one may add, caringly.

The potential of damage by a disgruntled ex-employee is immense. Some old-style management and HR practitioners with an industrial relations mindset underestimate the risks of being trapped in the old belief that no individual can take on the might of a giant organisation.

Not every unhappy former executive will take a company to court. But, in an age of social media ‘knowledge workers’ are as empowered as consumers. Besides, there are innumerable ways a hurt or jilted ex-employee can get even with his former employers – even while remaining below the radar, so to speak.

In ‘marketing’ they say, for every consumer complaint – there are a hundred dissatisfied customers who are too lazy to speak up. But, today one tweet or Facebook post can cause an avalanche of protests and many companies have learnt at a cost. In the case of people – one resignation of a star executive can create a wave of exodus. Word gets around in no time. Bitter partings leave behind a stink that also affects remaining employees – who wait their turn for similar step-fatherly treatment.

Growing companies can scantly afford such bad PR is this day and age of ‘war for talent’. Employer Brand – once destroyed – take years to rebuild. Therefore, smart HR leaders realise – taking old analogy of camels in an Arab’s tent – if you must let a camel go, better leave the creature happy and ‘toilet trained’.

The old HLL had the practice of calling its former directors to share the annual performance of the company, to keep them posted of latest developments and seek their counsel. It was routine practice for directors travelling to other cities – to call retired managers and ex-colleagues for drinks and dinner.

One of the first imperatives in working out separation packages – is not to count the small change and be gracious (if not generous) to a fault. Bureaucratic delays – are a major cause of disenchantment. Some organisations – turn cold towards employees no sooner they put in the papers, putting them on a merry-go-round ride of archaic policies and procedures. Unless someone is being fired on disciplinary ground or integrity issues it is advisable to make him/her feel like a member of the family setting out into the larger world and wish them luck. It is always a good feeling – if the employee walks out with a cheque in hand and smile on the face.

Exit interviews count a lot and should not be an exercise of going through the motions. Lot of angst can be dissipated over an empathetic chat – not just one to tick the boxes.

One has seen bosses – who dodge EIs fearing a spill out of their dirty secrets. Good learning organisations treat this as an opportunity to gather genuine feedback – that employees may otherwise be shy of sharing when on the rolls. A dinner or a drink with boss’ boss or the CEO in case of senior executives – followed by a token personalised gift of appreciation – works wonders.

But, progressive corporates don’t stop at that. They make a conscious effort to stay connected with former colleagues creating an alumni association of sorts. Annual get-togethers and invitation to special occasions like new facilities inaugurations and major product launches – help maintain an active positive relationship. Social Media has made this much easier with WhatsApp Groups and Facebook pages creating a fraternity of former colleagues. Very often the HR community subtly inspire these initiatives.

Much before all this became fashionable – even in the pre Internet days – the old HLL had the practice of calling its former directors to share the annual performance of the company, to keep them posted of latest developments and seek their counsel. It was routine practice for directors travelling to other cities – to call retired managers and ex-colleagues for drinks and dinner. These gestures went a long way to keep the fraternal links alive.

Have seen organisations whose former employees turn into their biggest critics. If current incumbents go to seek business from any of them – they are most likely to be disappointed. A good test would be wangling an invite to their homes and see which brands they use now. One can be almost certain they are not of their old company – such is the level of subliminal animosity.

At the other extreme – there are more than a 100 ex-Lever’s managers holding CXO positions across industries. They are, perhaps, the best brand ambassadors of the company – who keep it still at the top of the charts at campuses despite many new flavours – banks, IT, dotcoms, PE firm, International consultancy firms and now start-ups – coming and going each season.


That’s what differentiates an institution from a company.

A mentors' mentor

I didn’t know Tarun Sheth, former Head of Management Development of Hindustan Lever – later mentor at the HR Consulting and Search firm, Shilputsi – that his wife founded and run for the most part by his 2 very talented daughters – Shipa and, later – only, Purvi, too well. I was traveling in the hills of Kumaon last week and missed the news of his death in the papers. I came to learn about it from the email of an old colleague and at once knew that I wanted to attend his memorial service on my return to Mumbai.

the missing "merchants"

So, I went to the Indian Merchants’ Chamber Hall at Churchgate on Thursday evening. It wasn’t a very large gathering. I thought that most people who had come were there not merely to mark attendance. – but, because, they genuinely felt that Tarun had touched their lives meaningfully at some point in their careers. And, this was not limited just to the old Levers fraternity. Apart from family, friends and old neighbours there were few elder IIM – A alumni (he taught there before joining HLL) and some senior corporate professionals whom he would have befriended during his Shilputsi years. The current top-brass of “HUL” were conspicuous by their absence except for Harish Manwani and Shreejit Mishra whom I could spot. But, coming to think of it – Tarun had retired in 1987 and most of today’s stars weren’t – so to speak – even “born” then.


The function itself was understated and dignified in keeping with the personality of the man who was being remembered. A small bunch of people spoke – 6 to be precise including his daughter -Atsi and Ashok Vasudevan who sent a very touching voice-recorded tribute from the US.

the amraas guru

The remembrances marked the measure of the man that visibly resonated with the audience. As in modern high rises, low-ceilings being the order of the new corporate architecture - It’s not just they don’t have room in organizations for professionals as tall – but, as RG (an old friend and associate) wrote in his piece in ET (click here to read) he was a rare HR practitioner with a “humane” side (an oxymoron as it may sound to be).

I didn’t spend much time in Lever House between 1983 (when I joined HLL) and 1987 (when Tarun left) – so didn’t get the opportunity to know him very closely. I have a rather sepia tinted recollection of him in his corner room on 2nd Floor West Wing (which was later appropriated by Amy Kharas and successive Heads of Administration) – that was like an in-house shrink’s cabin of sorts before it was turned into a police station interrogation room in times to come.

{I didn't have the privilege of being invited for any of his fabled "Amraas" parties and, so, had no idea of his legendary capacity for mangoes (believe he could down 25 katoris in a single sitting !!). I do remember a funny incident though, when a new recruit – taking his offer to help him “settle in” too literally – went to him for getting a gas connection that rattled even his most unflappable self.}

I was there at the condolence meeting because, for me Tarun embodied much of the values that, the old HLL – that youngsters joined with stars in their eyes - stood for. If today, Lever can boast of the maximum number of CXOs to have come out of its stable spreading across industries in India and, now, even overseas– a large chunk of the credit must go to the likes of the Sheth - for laying the foundations of the HR system which withstood the ravages of time till the 'age of deconstruction' began.

In a way – therefore - I felt, I was representing in a small way many old compatriots - whose careers he had helped to shape - who wanted to be there but couldn't make it - either because of distance or some other reason.

Masti ka Pathshala

We were late parents. So – the kids of many dear friends and contemporaries are either well into college enjoying their share of young adult-hood or preparing frenetically for their school leaving examinations. And, the slightly older ones are getting ready for their nuptials – while our darling daughter is just about beginning to discover the joys and tribulations of her early teens – tucked away in the pristine preserves of the Sahyadri hills .

It’s examination season and with nearly 15 lakh kids appearing for CBSE alone, the TV Channels and Newspapers have been whipping up a frenzy for anxious parents – to fill in their prime time slots before Election fever grips the country. We had none of this in our times - so it’s all quite alien to me anyway. But, at a very different level, I have been drawn in over the past few weeks into a conversation on a fellow bloggers site (Cuckoo's Cosmos….click here to read ) between parents who are contemplating putting their children into Rishi Valley – the original Krishnamurty (KFI) institution. The obvious question – which we are asked very often in the context of our sending Jaya to Sahyadri – is, whether children studying in such “non-conventional” schools lose their competitive edge, which most parents – justifiably – believe is so essential for surviving in today’s cut-throat world.

Frankly, I don’t have a strong view either way – each I’m sure has its own merits and downsides. Neither Nina nor I come from a boarding school background. Apart from the children of a few close friends, the only ones in our extended family circle who have studied in a “public school” away from home are my dear cousin (2nd – as she never fails to point out) Tush and her brother Papu. We known a few Rishi Valley “products” – but that was just about it. We were also not steeped in Jiddu Krishnamurty’s philosophy or his ideas on education. But, when we decided to send Jaya to a boarding, we were very clear in our mind that it had to be a school like Rishi Valley.

In what appears like serendipity now in hindsight – we had visited Sahyadri soon after the school was set up in the mid 90s at the behest of a senior colleague of HLL. We had come away very impressed with what we saw. Jaya had just about come into our life and we had no clue at that point that we would ever consider sending her to a boarding. We wanted Jaya to be in a “non-pressure” environment. So Sahyadri was a natural choice. (Read Back to School by clicking here)

For us it wasn't a giant leap of faith (unlike an uncle of mine who pulled his two sons out of school on the instruction of their spiritual 'guru' and taught them at home. Both kids, incidentally, have done extremely well in their chosen fields of academics). We put Jaya there for our own set of considerations which we recognize may not apply to others. Though I’d be less than honest if I were to say that, we don’t have our moments of doubt.

Such moments of self-questioning arise – especially while visiting friends around the time of their children’s exams (not necessarily those in their last years of school but also those in the junior classes) when the atmosphere of tension is almost palpable in the house. Similar thoughts also cross my mind at the Parents Teachers Meeting – when I compare by distant recollection what I studied at her age and worry if they are being taught at a level – that’s a notch lower than what the Board syllabus would warrant for the class.

But then, I also think of the myriad other things they are learning - that we never had the opportunity for in a city school. The results of the previous batches – which though not skewed towards the high nine-tees are not at the bottom of the scale either - also bolster confidence. So they must have cracked the code somewhere and built a method into their system - otherwise, it’s not for nothing that the KFI schools have been around for over 75 years now with alumni straddling different walks of life.

The kids, of course, love it once they get over the initial joining pangs. Till the 7th Standard – it’s virtually a ‘masti ka path-shala’. It is only in the 8th when the hormones and exams kick in – does one notice a few spells of blue that come with the first intimations of reality. But then, like the hormones I am told this too is a passing phase.

But I think it is not just English and Maths or Physics, Chemistry, Bio that matter. Nor is it the Games, Arts and Music. It goes much beyond studies and the extra-curricular add-ons. In fact, the high-end Boarding schools have much more to offer in comparison.

I remember – the time we had gone for the interview the parents sat around the matted floor of the assembly hall for an open question and answer session with the Principal. One of the parents remarked – “But Sir, you will agree that the ultimate test will be ICSE”. The young Principal chuckled a little and said with a smile – “ICSE is an important test – but I am not sure if it’s the ultimate test. They will have to face many other tests in life and hopefully we prepare them for those in some small way”. He couldn’t have summed up our expectation better.

Related Blog Post: "Back to School" (click here to read)

When is CSR Sexy?

Being a born drifter, after sailing through some choppy waters in the last few years – I floated into the world of Corporate Social Responsibility (CSR) sometime back. I saw in it an opportunity to dip my toe into the social sector – something I had been contemplating for long as a post retirement career option. Unlike some contemporaries who took a plunge into the NGO world only to jump out with a start, it has been – thus far - a rather fascinating journey for me.

Over the years – a veritable industry has spawned around CSR. Now with all brouhaha over Climate Change, Carbon Emission and Sustainability – it is mega business really. Not a single workday passes without my receiving a call or invitation for sponsoring or participating in a conference or seminar on CSR (paid, of course). Consulting firms have also jumped into the bandwagon starting their practices – to advise companies on how to develop their own CSR Strategy and roll out CSR programmes. NGOs big and small come up with proposals for “partnerships”.

Green-wash, Blue-Wash or White-wash?

Without a doubt CSR has come a long way from the days of Merchant Charity and Gandhian Philanthropy to responsible corporate citizenry. It is – understandably – still largely driven top down by the CEO or the owner-promoter, often goaded by a conscientious Board of Directors. Much of it, many would argue, is just lip service for the purpose of publishing in Annual Reports or for making presentation to industry bodies and the government. At times, it is also with some collateral motives - what has come to be known as “Blue-wash”– (where companies aim at distracting attention from the social and environmental consequences of their production and products) or “Green-wash” (polluting industries trying to buy their ‘license to operate’).

Of course, the UN Global Compact and MDG (Millennium Development Goals) have been pushing corporations towards re-organsing their businesses along sustainable lines. But, even otherwise, the movement is beginning to gather steam across the world. A lot of this is because of pressure coming laterally from external stakeholders (Communities, NGOs, Government and share-holders in some instances) and also, very often, from below – i.e. the employees.

The Satyam Effect

Increasingly employees – especially the younger ones – are becoming conscious of the kind of organizations they join and work for. Though’ the discounted head-count of Satyam is still a whopping 40k, socially responsible organizations like Infosys and TCS still command a premium in the employment market. Another phenomenon , which seems to be catching up is employee volunteerism – with more and more people within the organization wanting to contribute their skills and time to the community. Earlier this used to be just a few good souls wanting to do their bit for society, putting in some work for charities in their spare time. Today it is happening in a much more organized form - with groups of employees coming together to help communities around their immediate sphere of activity using their own and the organization’s core competencies. Overseas many organizations have a clear policy for employer-supported volunteerism – where companies encourage its employees to do volunteering work by giving time-off or by making matching monetary contributions for their efforts etc. In India too this trend is picking up. A band of young, passionate social sector professionals are making the difference.


Just Hot Air ?

It’s fashionable these days to try and make a business case for selling the concept of CSR. The standard line is ‘why CSR is good for your business ?’ and the common arguments used are CSR helps in creating employee motivation, brand premium, consumer loyalty etc. While these can certainly be incidental benefits – the logic is far too tenuous to hold water for today’s CEOs who being hostages of the ‘street’ can’t look beyond the quarterly numbers. Therefore, you can’t quite fault Stefan Stern who in a recent column in the Financial Times (Read "The Hot Air of CSR" by clicking here ) writes “now that recession’s here we can forget all that nonsense about CSR and get back to making some money”.

But, CSR need not be through Cheques alone. In fact – some of the best CSR programmes have a very small monetary component, if at all. Good corporate governance, taking care of minority shareholders, promoting work-place diversity are by themselves good CSR.

Much before the term CSR gained currency – way back in the early 80s, Hindustan Lever (not HUL!!) had a Rural Training Program under which every Management Trainee of the company had to compulsorily spend 2 months in a village, in the very backward District of Etah in UP, where the company had a Dairy Unit. During this period the trainees (“Manager Saab” as they were lovingly referred to by the gracious villagers) were expected to provide managerial inputs for the development of the villages. The motive was not entirely altruistic. The visionary Chairman of the company had seen that the survival of the Dairy Unit and economic upliftment of the District were closely inter-linked. A collateral benefit was the solid “grounding” it gave the Management Graduates in the basics of rural marketing.

Often tiny innovations make for great CSR. A chain of Cafes in Kathmandu employ only speech and hearing impaired waiters. Many years back – I remember a small snack bar at the end of Prabhat Road in Pune used to engage needy students. A placard on the table requested customers not to hurt the dignity of the boys by offering them tips. But, instead – if they wished – to put in their contribution into a box, the collection from which would be used for subsidizing the cost of their books and tuition fees. I wonder how many Corporates would think of engaging physically challenged individuals in their pantries and canteens – jobs they can easily do.

Heart, Head or Condoms ?

But, CSR is not just a matter of the heart it’s a function of the mind as well The real answer to Stefan Stern’s provocative thesis, therefore, lies in how CSR can be woven into the fabric of the organization – where it is not an ‘add-on’ or ‘stand-alone’ activity but an integral part of the operations to yield visible and tangible benefits. Strategically conceived, good CSR practices can actually help companies deliver better bottom-line results – which can look especially attractive, when the chips are down. HLL (sorry, HUL)’s Project Shakti and ITC’s E-Choupal are 2 such examples , – which even after discounting the ‘hype’ have significant top-line potential for the 2 companies. The ICICI Foundation’s foray into Micro-financing and Social Entrepreneurship is another good model to emulate.

In the 70s and 80s, consumer product companies like HLL and ITC used to sell Condoms (marketed under the Government's Family Planning Programme) through their Distribution Channels – which, to my mind, was also a form of CSR. So, when CSR is not just ‘good for business’ but it becomes a part of doing business, does it begin to look sexy !!