HR and Communication Fiasco at TCS

I had made plans to go and watch Whiplash this evening, but the solidarity march in Paris ended my plans abruptly. While I was peacefully sitting at home my friend shared with me an article on NDTV about 30,000 employees being fired at TCS and an exit interview recording posted by a let-go employee online. In the next few minutes I traced the file on SoundCloud (http://m.soundcloud.com/fiteorg/tcsliesexposed01). Should the filed be named as HR & Communication Fiasco at TCS?

At the beginning of the New Year I received an image from my mother on Whatsapp; it was a story that had appeared in a weekly Tamil magazine (Ananda Vikatan) about 30,000 employees planned to be axed. When I looked at the image I was suspecting it could be IBM since there were recent articles in the newspapers about lay-of plans , but to see TCS in the Tamil weekly magazine was surprising.

Let's remind you that TCS is the largest employer in the Indian IT industry, they regularly met their market guidance, hold day zero slots in most campuses and are sought after by clients for their cost point and quality. As my friend says "they are the Walmart of the Indian IT industry". Why would an organization like TCS suddenly they let go of 30,000 employees was my first reaction. I'm sure this would also be the reaction of investors, clients and their own employees. I'm not privy to any of their employee communications to make an observation or pass a judgement. Currently on MMS mode (MounMohan Singh mode) and only 3 more days to their results, TCS must working on a canned statement to prevent further embarrassment in the market.

Was the lay-off an anticipation to slow down in the Europe or to keep the organization cost competitive and post healthy margins to investors? Setting aside my initial reactions and speculations, I started to play the audio clipping.

Pause, hear the audio file before you read further.

Unpreparedness: First few minutes into the audio, I could sense the process focus of the organization more than unpreparedness. The HR guy uttered words in a slow pace and for someone who was not present in the room it appeared as though he was reading from a script. He spoke more about the procedural formalities and processes as opposed to speaking the truth and placing the facts. But within in the next 3 minutes the reason he cited for the decision sounded unconvincing and exposed the unpreparedness of HR for such a massive exercise (culling 15% of their workforce). How can one use a common script to fire 30,000 employees? This is a big failure at the end of HR to go with canned statements and without case-by-case date. Why not have an automated machine have a conversation if the HR are asked to read from a script?

Wrongful termination: Soon the female employee confronted the HR guy with her past performance ratings, on site deputation and her maternity. With no facts in his hands the HR was wrapped on his pads in front of the wicket (no DRS needed). A senior HR colleague in the room immediately comes to his rescue and digs herself deeper by saying that the data on the employee is confidential and that she will not be able to disclose any details. Isn't this a wrongful termination of an employee? Shouldn't an employee have access to his/her own file? Are these reasons even valid in a court of law? While HR expect us to speak the truth and share the facts about our skills and qualifications they rarely share the facts when the employee is let-go.

Loss of employee and productivity: It is chilling to hear this audio as a coworker in the IT industry unprotected by labor laws and unions. Imagine what it would be to be working in TCS and not being on their current firing list. Does this audio improve employee morale and productivity? Imagine chickens in a pen that are being culled for bird flu; some uninflected birds may also culled as a precautionary measure, but imagine the fear and anxiety of the surviving birds. Many of them planning to join TCS may be thinking twice and those inside must be waiting for an opportunity to jump boats. Let's no forget that Infosys is still trying to build it lost brand image among investors and trust of its employee (iPhone6 was given to 30,000 top performers to build employee morale, arrest attrition and buy their trust).

In fact, I was commenting to my dear friend a few days ago that corporate India is now getting inspired by the political class and is giving away freebies to buy loyalty. HCL also gave its top performers Mercedes Benz and overseas vacation. 

The real Whiplash: TCS may be an organization that has process strengths, but to treat an employee like a chicken in a pen is not acceptable. As a communication specialist, I find this is a colossal failure of TCS's communication strategy. Corporate Communication whose role is to inform investors, employers, clients and prospects has failed in its duty.

A responsible organization should have 

- explained the rationale behind the exercise to its employees

- shared the news with its investors, general public and future investors or at least postponed the firing exercise if they were afraid stock price falling ahead of their results

- followed a logical process to terminate employees and be seen as a ethical employer and a organization with social responsibility

In marketing and communication we say that the word of mouth is the most powerful marketing and more so in the digital era. Look at the number of blogs and digital pages set up by such wrongfully terminated employees on the internet, read their trolls on the social media platform. How will TCS explain failure of their talent recruitment and skill redressal strategy? Why should a prospective client or investor look at TCS given the treatment meted out to their long-term employees? Why should an existing client renew their contract with TCS? Why is TCS not another sweat shop? There is more for TCS to explain given their communication fiasco at the beginning of the year. 

Every wrongful termination, every minute of silence continues to erode their trust (prospects, clients, investors and future employees) killing their brand value of TCS. It is going to be an uphill task for TCS to rebuild their trust internally and externally. 

My heart goes out to all those terminated and soon to-be terminated employees of TCS and their families. Sadly, we've all learnt that loyalty is one way traffic and employer loyalty is an abstract concept. I hope you will remember your lessons and be able to find a next job soon and hope your EMIs will not take you down. Best wishes!

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.

Then they came for the Trade Unionists, and I did not speak out— 
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out— 
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

MARTIN NIEMÖLLER