HCL Technologies was an established name in the field of IT services for close to 30 years, before stiff competition, laxity and economic downturn resulted in an exodus of employees, customers and revenue. To get back to the top of their game, Vineet Nayar, the then CEO and vice chairman of the company, decided to implement a unique 'Employee First, Customer Second' policy to empower and engage employees. The objective was simple—to ensure employee became more productive, and that HCL Technologies was propelled back to its former leadership position.  Seven years on, the EFCS policy has turned the company around, drastically reduced attrition and boosted the CPGA of the company by 25 per cent in the last three years alone. 

1. THE BACKSTORY

Introduced to the world after its IPO launch in 1999, HCL is today an established and well-respected global IT service provider known for its innovation, value creation and “transformational outsourcing”. As of now, this Noida-based company offers its clients a wide variety of services that range from remote infrastructure management, engineering and R&D services, BPO services and lastly, software focused IT solutions. 

2. THE PROBLEM 

Around 2005, after years of being on top of their game, HCL Technologies started showing signs of laxity in spirit and practice, which resulted in a sharp fall in profits and the number of customers. This, coupled with the emergence of stronger competitors such as Wipro, TCS, Infosys and the then ongoing global economic downturn, finally brought the mighty IT giant to its knees. 

The situation turned so bad so fast that the company started witnessing a mass exodus of senior management, and attrition rate peaked. In fact, vice chairman and CEO of the company, Vineet Nayar, too considered leaving it all behind and starting an NGO. However, it was only on the insistence of Shiv Nadar, the HCL chairman, that Nayar chose to stay on and set things right.

3. THE PLAN

Nayar decided to introduce numerous short and long term clean-up programmes within the company. To begin with, a panel was set up to look into selecting candidates via online networking platforms like LinkedIn. The new EFCS strategy was detailed and launched. HCL believed that this focus on people inside the organisation began with empowering employees with knowledge, resources and infrastructure in a work environment that nurtures innovation. This, in turn, would lead to maximising returns for customers, as empowered and motivated employees tend to offer better value in their engagements, directly influencing customer satisfaction. 

4. THE ROLL-OUT

In 2005, the EFCS strategy was implemented at HCL. To begin with, a Smart Service desk was set up to resolve employee grievances, be it broken flushes in the bathroom or delay of salary slips. Through this desk, employees could hold any manager accountable by opening a “trouble ticket” against him or her.  

Apart from this, a review programme was initiated which allowed employees to review their managers’ work and post it on the company’s intranet. The company also introduced an annual “Employee Passion Indicative Count” through which employees could identify and measure their passion quotient, giving the company an idea of how happy or dissatisfied their employees were.

Lastly, the company introduced a one-of-its- kind high-level Retention Council that worked to retain the company’s star performers. The roll-out of EFCS introduced an unconventional, bottoms-up management style at HCL, and changed things at the company’s very core. 

5. THE AFTERMATH

In terms of attracting new talent, the company’s selective use of networking sites ensured that it got quality talent across the board. Last year, HCL used LinkedIn to hire 60 per cent of its senior-level executives, 40 per cent mid-level staff and 20 per cent junior staff.

Thanks to Nayar’s clear vision and step-by-step implementation of the otherwise tricky EFCS philosophy, the company doubled its market capitalisation and tripled the number of its $100 million customers in the past three years. It also has the highest revenue per employee in the IT sector now. 

6. THE TAKEAWAY

Overall, the company’s EFCS policy has helped in terms of retention of its senior and core staff, as empowered employees are now happier and more content, bringing down attrition rates over the years. The company is now viewed as a trusted, transparent and democratic organisation by its employees. As Shami Khorana, president, HCL America aptly sums up, “Since the Employees First, Customer Second strategy was introduced, our 90,000 transformers have seen themselves as the fundamental source of the company’s value, constantly generating new ideas and becoming the drivers for new business growth.”