Saturday, August 14, 2010

Global business ! Exploiting varied labor laws...

Employees and employers often agree on just one clause of the job offer letter.

"Employment at will".

It gives freedom to the employee to explore better ways to further his / her career. It gives freedom to the "Employer" to clean up dead settled wood from the warehouse !

However, a lot of mid and small enterprises struggle to keep employees and always wish that people would stick around for many years, to accumulate enough details of the organizational DNA that helps a company run, the way it does !

While having lunch today with a well settled Bay Area venture capitalist today - I heard this new idea, that locks in good employees with their ventures. Use/Abuse of Global Labor laws...

The software companies that used to send jobs to India, facing this challenge of employee retention. So, Venture Capitalists are pushing them to hire India software engineers in Malaysia / Kualalampur.
Malaysia has this labor law - where a foreign worker can change a job only when current employer allows. And still a lot of Indian software engineers find Malaysia (an OIL country) lucrative to work.

For Venture Funds sitting in US, its cheaper than building something in USA and they can hold on to good employees that they import from India to this land !!!

Win-win-win ??

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