New telecom licences ring in acute talent crunch

The shortage of spectrum, the radio frequency that enables wireless communications, is not the only issue worrying the telecom industry.

With the government issuing 120 more licences to over 10 players that are expected to roll out their networks soon, telecom companies fear a major talent crunch over the next 12 to 18 months.

Telecom HRD analysts said attrition rates across levels is expected to go up to 25 per cent from 18 to 20 per cent.

Companies expect salaries to jump 15 to 40 per cent, depending on the level, as the great hunt for new recruits takes off.

"On a conservative basis there would be a shortage of 60,000 to 70,000 personnel in the telecom sector, depending on the rollout plans of the operator. The dearth is mainly for engineers and managerial staff," Tata Communications Senior Vice-President (human resources) R Nanda said. The Tatas have received permission to launch GSM mobile services across the country.

The telecom industry employs 130,000 to 150,000 people and has generated indirect employment for 1 million more in the form of retail shops, sellers of pre-paid cards, tower construction companies and so on.

"The new players will feel the impact of the talent crunch more because both newcomers and industry professionals would prefer to work with established players," said Reliance Communications (RCom) president (personal business) S P Shukla.

RCom, the country's largest CDMA mobile player, is rolling out a pan-India GSM mobile services network.

The favoured poaching ground are state-owned telecom majors BSNL and MTNL, which have a large and experienced staff. Former BSNL Chairman and Managing Director D P S Seth, who is now a telecom adviser to several telecom companies, said: "Most telecom companies are looking at BSNL and MTNL as they have experience and the salary differential with the private sector is huge."

BPL, which has received permission for a pan-India network, admits that it has to pay higher salaries to attract talent and it is focusing on both competitors and other industries, principally executives in the fast moving consumer goods business.

"We have to pay at least 35 to 40 per cent more to attract staff from other telcom companies. I expect to pay 15 to 20 per cent more for people from other sectors," said BPL Director and CEO S Subramaniam. But some of the new players said outsourcing networks and infrastructure sharing will limit the numbers they need to hire.

"We will require much fewer numbers than the older players. The shortage will be in limited areas like in the top management, government relations and so on," said a senior executive of the Sistema-Shyam combine, which has received permission to expand.

Expectedly, incumbents are taking the first tentative steps to retain talent. For example, RCom has offered its 20,000 employees an employee stock option scheme.

Tata Communications is recruiting freshers and giving them advanced training to meet the talent pool crisis. It is also allowing staff to choose the department in which they would like to work.

Public sector competitors, meanwhile, are hoping the recent announcement of the Sixth Pay Commission, which recommended an effective 28 per cent salary increase, will help retain talent.

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CALLING UP A SHORTAGE

The requirement is nearly half the present 130,000 to 150, 000 people directly employed by telecom operators

Shortage of 40 to 50% at lower levels alone

Industry attrition to jump to 25% from 18 to 20% at present

Poaching gains ground, salaries to increase 25 to 30%