Forced Ranking – II

841,500 is the number of software professionals according to an estimate in the IT industry in India.

Assuming most of the IT companies follow the forced ranking that I talked about in my previous post, the question that I have is….where does that leave the 42,075 employees who fall under the bottom 5%?

42,075! That is as high a number as the current strength of the likes of the top IT companies.

Here is what happens….all organizations have different time-frames within the year when they carry out this exercise.

For simplicity sake, assume 3 large organizations with an employee strength of 30,000 employees each doing their Appraisals/Forced rankings once every year at different point in time say January, June and September respectively. Each of the Organization creates approximately 1500 dissatisfied employees during these months….natural consequence of the process, employees from org A quit and go and join B, where the process repeats itself and the 1500 from B go and join Org C … meanwhile Organization A and B have approx 1500 seats that they need to fill in and more given the fact that they would have more business……and it is no surprise that the Org B would be willing to hire the bottom 5% from Org A at a higher designation and higher pay and Organization C hiring the bottom 5% from Org B and so on.

And interestingly no one would concede that they are hiring anyone less than the best!

Interestingly, Joel, earlier this year, wrote an awesome post titled "Everyone thinks they are hiring the top 5%".

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One thought on “Forced Ranking – II

  1. Good to see someone posting about this. I work in one of the largest s/w firms in India and I feel this ranking system is rubbisly followed.

    The state of Management in software companies leaves a lot to be desired.

    It all SUCKS big time

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