The Hindu Business Line : ONGC to rehire 26 former executives

Kolkata. Sept. 26 In a trend setter, the state run ONGC is set to take 26 former executives on board once again. The appointments — to be made at deputy manager and deputy general manager levels in key disciplines such as geo-sciences, engineering and finance — is expected to be over by December.

Having witnessed high rate of attrition during the last two to three years, ONGC has launched a scheme in 2006 to invite its former employees to fill up key vacancies.

A total of approximately 400 former employees responded to the call. “We have short-listed 26 suitable former executives of the company for reappointment. The appointments are expected to be over in the next three months,” a senior ONGC official said. The official, however, admitted that the company’s attempt to retain talent is largely defeated by its low salary structures. “People are still leaving the organisation,” he said.

Attrition bug

After a brief breather during the last fiscal, the attrition bug seems to have been biting ONGC hard once again. Compared to an exodus of approximately 200 executives in 2006-07, the company has already lost close to 300 professionals from key E&P areas and finance in the first six months of 2007-08. ONGC has already lost well over 1,000 experienced employees to its competitors in the last few years.

Other PSUs hit

Apart from ONGC, Oil India Ltd and Engineers India Ltd are most affected by this trend. The rate of attrition is reportedly the highest in EIL, a PSU consultancy firm for oil industry.

While all three have separately demanded freedom to fix the pay structure of its employees, the issue of discrepancies in compensation packages offered by public sector companies has further significance, according to studies conducted by Hewitt Associates and Price Waterhouse Coppers, appointed by oil PSUs and Petroleum Federation of India respectively.

Studies point out that oil PSU executives beyond the levels of a deputy manager are offered a pittance compared to their private competitors. The difference in compensation package grows with the seniority.

“We (Navaratna oil PSUs) have already presented our case favouring autonomy in deciding the wage structures. The department of public enterprises is so far positive to our views. We are looking forward to a positive recommendation from the pay committee in this regard,” an industry official said. The committee is expected to submit its report latest by May 2008.

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