Thursday, July 31, 2008

Job hopping impedes career, warns a study

It is now clear that professionals in the workforce need to pay more attention to the adverse effects of the "job hopping" phenomenon. In the survey below >73% respondents felt that staying longer in a job helps learning. Clearly a case of "rolling stone gathers no moss". A common sense advice to all "Look before you leap ....again and again". A timely article from Express India.

Editor
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Wednesday, July 30, 2008 (Source: Express India)

New Delhi, July 30: Higher pay and better employment prospects may be utmost for a person switching companies, but job-hopping can severely hamper career growth as well as wealth creation in long-term, says a new survey.
The experts believe that sticking to the same company for more time, rather than aimlessly hopping jobs, can provide better learning and career momentum to young professionals.

Findings of a latest study by research and analytic firm Evalueserve reveal that the multiple career steps within the same company accelerate a professional's growth more than many horizontal moves across companies.

Hopping jobs every 24 months can severely damage the long-term career momentum and even wealth creation, it said.

Salary is higher at the time of switching to a new firm, but thereafter the person hardly gets any value addition, management institute IMI's director C S Venkat Ratnam said.

"A young professional should be choosy with his first job and see all angles before joining a firm so that he can stay put for at least two years at the same place, which would give him a sound base," he added.

"Job hopping is largely done in two circumstances, primarily for career progression and secondly for compensation. In the first instance, the candidate comes across as a responsible, forthright and result-oriented," a senior official at global HR services firm Manpower said.

"However, in the latter case, it comes across as professionally immature, myopic and highly selfish. This is considered as the biggest negative factor," he added.

According to Evalueserve study, fast job changes are mostly made for wrong reasons such as prioritising money over learning, succumbing to peer pressure or naively believing everything they are promised at the new position.

In the survey, 73 per cent of the respondents stated that spending more time with the same organisation provides better exposure to various functions within the company and therefore provides better overall learning and career momentum.

"A majority of these professionals get the 'two-year itch' and change jobs every 24 months, sometimes moving from high- growth companies to slow-growth captive back-office operations of large and medium-sized multi-national organisations," the study stated.

About 85 per cent of the business heads surveyed by Evalueserve consider loyalty in previous positions as one of the most important evaluation criteria for hiring and career advancement and 87 per cent of respondents feel that young professionals should not work in more than three companies during the first 10 years of their careers.

Experts believe the Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO) and Knowledge Process Outsourcing (KPO) industries have been the major drivers to the trend of job hopping within a short span of time.

Elaborating the reasons that propel individuals to look for greener pastures in short intervals, IMI's Ratnam said that job hopping by young professionals might be due to tall promises made by the human resource departments of the firms, which do not fructify after the individuals joining or the profile does not commensurate with the individuals skills.

"To avoid the detrimental effects of job hopping, an organisation should encourage the senior executives or mentors to spend quality time with the young professionals, which would give them a perspective about their career growth," Ratnam said.

March of the pharma sector

It seems that lately there is a lot of movement in the Pharma sector with growing interest from Japanese companies. Takeda and Torrent seems like a good alliance. Here's the article from TOI today.

Editor
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31 Jul 2008, 0049 hrs IST,

AHMEDABAD: Japan's largest and oldest pharma giant Takeda Pharmaceutical Company is keenly eyeing Ahmedabad-based Torrent Pharmaceuticals as a possible acquisition.

The inspiration may have come from Daiichi Sankyo's $4.6 billion acquisition of Ranbaxy Laboratories.

Sources close to the development said the $13.75 billion Takeda had evinced keen interest in acquiring the Mehta-promoted Torrent group's Rs 1,336-crore-turnover pharmaceutical business.

"Talks between Takeda and Torrent have reached the price negotiation stage. In fact, Takeda chairman Kunio Takeda had long meetings with the Mehtas in a Mumbai hotel last week," a source close to the deal said.

Torrent is looking for a valuation of close to Rs 400 per share. Incidentally, Torrent's negotiations with Sun Pharma, before Takeda came into the picture, are understood to have fallen through as Sun Pharma could offer up to Rs 300 per share, which was much below Torrent's expectations. Both Sun and Torrent had denied being in acquisition talks.

Takeda, which has a presence in 90 countries and manufacturing facilities in Japan, Italy, Ireland, China and Indonesia, was eyeing Torrent as it would give it ready access to the lucrative Indian market and provide a low-cost manufacturing base to cater to global markets.

Interestingly, what also perhaps makes Torrent a synergistic fit is that like Takeda, Torrent is also an R&D-focused pharma company having a strong presence in therapeutic segments like cardio-vascular, diabetes, gastro-intestinal and anti-hypertensive.

Torrent first shot into the global limelight when it made a bold bid to acquire Merck's global generic pharma business last year. Having failed in that bid, there is now realisation among the promoters that they need to raise capital for a massive expansion in the power sector.

Market buzz has it that the Mehta brothers — Sudhir and Samir — have already chalked out ambitious expansion plans of hitting a 10,000MW power generation capacity in three years from the existing 1600MW. Torrent Power is in electricity distribution in Ahmedabad and Surat, and has already established fuel linkages with the Mukesh Ambani-controlled Reliance Industries Ltd.

A Torrent spokesperson, however, denied the development saying: "There is no move on the part of the promoters of Torrent Pharma or its management to sell stake, in part or in whole, to any players, national or global."

Saturday, July 19, 2008

Nomura in India drive

Mizuho, Mitsubishi UFJ, Daiwa SMBC and now Nomura. All point to growing interest in the brokerage revenues from India. Certainly spells an opportunity for finance professionals in India.In the past it used to be an opportunity only for bilingual Chartered Accountants and now investment banking professionals too. It seems India is set to follow the Japanese growth trajectory in the view of the spokesperson here. If that happens then Mumbai's name will be taken in the same breath as New York and London. Certainly an interesting thought. Here is the article that appeared in Financial Times. Editor
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By Michiyo Nakamoto in Tokyo
Friday Jul 18 2008 13:05

Nomura said it aimed to increase staff in India from 17 to about 100 in two to three years.

The drive by Nomura to expand in India highlights the growing importance for Japanese brokers of revenues outside their ageing home market.

Daiwa Securities has signed a memorandum of understanding with Brazil's Banco Itau Financeira to co-operate in asset management, brokerage, investment banking and research.

In April, Daiwa SMBC, an investment banking joint venture, began operations as the first Japanese broker with a full line-up of services in India.

Daiwa Securities Financial Group owns 60 per cent of Daiwa SMBC, with the remainder owned by Sumitomo Mitsui Financial Group.

Mitsubishi UFJ Securities set up a subsidiary in Mumbai in April. In the same month the Japanese group increased its stake in King Eng - a south-east Asian investment bank based in Singapore with operations in markets including Hong Kong, Thailand, Indonesia - to 14.63 per cent.

Mizuho Securities has also signed a memorandum of understanding with Tata Capital to jointly launch a private equity fund and offer wealth management services.

Apart from its foray into India, Nomura has set up a branch in Moscow and is aiming to set up a local subsidiary in Saudi Arabia by the end of the fiscal year in March.

This is Nomura's third attempt to establish itself in India.

Last year, Nomura failed in its attempt to take a stake in Enam, an Indian financial services group.

Before that, Nomura had a Delhi office and later a Mumbai office, both of which were closed after a few years.

The difference this time, Nomura said, is that the Indian market is expanding rapidly and deals have grown to a size comparable to those in Japan.

"It is like Japan was several years ago," in terms of the growth potential of the capital markets, according to Nomura.