The Hindu Business Line : High attrition: Oil PSUs ask Hewitt for `benchmark study'

Talent flight
While upstream majors ONGC and OIL face the first brunt of attrition, according to sources, talent flight was now a major cause of concern for not only the downstream companies such as IOC, HPCL and BPCL, but also the oil and gas sector consultant, Engineers India Ltd.

Kolkata March 13 Facing unprecedented flight of talent during the last two years, oil and gas sector PSUs (including both upstream and downstream companies) seem to be clearing the grounds for demanding higher pay structure for its officers and executives compared to the rest of the public enterprises.

At present, the Department of Public Enterprises (DPE) fixes a uniform pay structure for the entire PSU sector.

The oil PSUs have assigned the US-based HR consultant Hewitt Associates to conduct a "benchmarking study". While the report is to be submitted this month, according to industry sources, Hewitt may point out disparity in compensation packages between private and public sector, beginning with the deputy manager (E3) level, as a major reason behind the exodus.

"The disparity starts with a deputy manager having 10 years of experience and the package increases slowly as it reaches the senior management levels beyond DGM or GM," said an ONGC official.

Having lost over 1,000 professionals during the last two years, the company has recently offered a number of incentives to its executives.

While upstream majors ONGC and OIL face the first brunt of attrition, according to sources, talent flight was now a major cause of concern for not only the downstream companies such as IOC, HPCL and BPCL, but also the oil and gas sector consultant, Engineers India Ltd (EIL).

While EIL official sources were not available for comment, sources said that the consultancy firm had witnessed the highest attrition rate in the industry.

According to Mr V.C. Agarwal, Director, HR, IndianOil, the downstream major is now losing approximately 150 officers, up by three times, to its competitors annually. IOC has a pool of 10,000 officers.

Though Mr Agarwal does not consider the current attrition rate as alarming, company sources say that the exodus is prominent in key areas such as finance, international trade, refinery and pipeline technology. Those left include people right from manager level (E4) to executive director (E9).

Even public-private joint ventures such as ONGC-Mittal have emerged as a major draw to PSU officers looking for better pastures.

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