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Why companies are using algorithms to spark dialogue on performance, not decide careers
Why companies are using algorithms to spark dialogue on performance, not decide careers

Time of India

time5 hours ago

  • Business
  • Time of India

Why companies are using algorithms to spark dialogue on performance, not decide careers

Advt Advt By , ETHRWorld Join the community of 2M+ industry professionals. Subscribe to Newsletter to get latest insights & analysis in your inbox. All about ETHRWorld industry right on your smartphone! Download the ETHRWorld App and get the Realtime updates and Save your favourite articles. A joint report by the International Labour Organisation (ILO) and the European Commission describes Algorithmic Management (AM) in today's workplaces as a double-edged to the report, while AM improves monitoring and provides measurable productivity metrics, it also fosters micromanagement , which can lead to a decline in overall job performance—particularly in emerging economies such as India and South report highlights how countries like China and Spain are prioritising fairness and transparency in revealing algorithmic patterns. Recently, the United States introduced the Algorithmic Accountability Act 2023 to regulate the use of personal data and automated intensive monitoring initially drives efficiency, reduces labour costs and offers clearer productivity benchmarks, the report warns that within six months, many organisations experience rising resignation rates and employee complaints of being treated in a 'robotic' challenges HR leaders to think not just about productivity, but also about the responsible design and governance of AM Gorur, Head - HR, Fujitsu India GDC, said no algorithmic outcome is directly applied at Fujitsu; every recommendation passes through a neutral panel that evaluates its impact holistically across employee experience, fairness and contextual relevance.'We believe in using data to make life better for our people, not to box them into one-dimensional outcomes. Strategic communication channels, ranging from dashboards to manager-led conversations, ensure employees understand both the intent and the implications of data-driven insights,' Gorur Pande, Group CHRO, Sterlite Electric , mentioned advanced analytical methods such as Regression Analysis to identify key competencies that shape leadership effectiveness alongside team performance. These insights support the company in designing sharper development journeys and succession further emphasised, 'Tools like Amber enrich our understanding with its AI-powered conversational interface that shares authentic employee sentiment and flags emerging issues, allowing our leaders to act proactively and empathetically.'Pande said that at Sterlite Electric, all AI-generated insights are reviewed within a 'human-in-the-loop' framework, supported by fairness audits and constant reviews.'Decisions on promotions, performance or scheduling always remain with our people leaders, backed by context and compassion. Finally, we have created both formal and informal mechanisms for employees to raise concerns or appeal decisions, which ensures that data becomes a tool for dialogue, not a final decision,' added Bhattacharyya, Chief Talent Officer, RPG Group , expressed a similar view. He said, 'RPG has consciously chosen not to use AI in performance evaluations or promotion decisions.''These are high-stakes, career-impacting calls that require context, judgement and a level of human discretion that AI simply doesn't offer today,' said Sterlite Electric, employees are clearly informed—not only about what data is collected and when, but also why.'We obtain explicit consent every time their data is used, and at any point, employees are empowered to manage their own profiles: they can view, update or delete their information, and no one can access anyone else's private data without permission,' said Fujitsu, employee data are collected to enhance wellbeing, improve personal experiences and promote fairness, said Gorur.'Importantly, we do not use data to micromanage but to identify opportunities that help employees grow and thrive. We complement this with digital ethics education so employees feel empowered, not monitored,' claims Gorur.

Lag between Introduction to implementation: Why gig economy needs a human touch
Lag between Introduction to implementation: Why gig economy needs a human touch

First Post

time15 hours ago

  • Business
  • First Post

Lag between Introduction to implementation: Why gig economy needs a human touch

An International Labour Organisation report defined the gig economy as 'labour markets that are characterized by independent contracting that happens through, via, and on digital platforms.' This sector boomed at the onset of the Covid-19 crisis and has continued to grow exponentially globally with a compounded annual growth rate of 16.18 per cent between 2025 and 2033. Most digital labour platforms classify gig workers as 'independent contractors' or 'freelancers'. This means they shift the risks associated with labour onto the workers themselves and reduce labour costs. Most importantly they represent the company they work for but they are not on their payrolls. Workers, in return, theoretically gain flexibility and autonomy over their working hours. This fundamental model has been adopted worldwide by platforms like DoorDash, Uber, Glovo, and Swiggy among others. However, as the gig economy has grown, so have its problems. STORY CONTINUES BELOW THIS AD Dark side of the gig boom In 2025 the Human Rights Watch published an article titled The Gig Trap: Algorithmic, Wage and Labor Exploitation in Platform Work in the US, which detailed the condition of the gig economy in the United States and the exploitative practices workers are forced to endure. Those deliveries within minutes from food to books to apparel display the might of the digital but hide the miseries of those that land on your doorstops to deliver. These digital platforms shadow their workers constantly more to monitor rather than secure and collect data on everything they do from 'office badge swipes, email exchanges, browsing histories, keystrokes, driving patterns, and rest times' to social media usage and health and fitness habits. Mobile usage is a phenomenon in India and the apps that make daily lives easier for the people whether you are based in a Tier-1 or Tier-2 city or even a Tier-3 area are being used daily at madding pace. There is no doubt that the gig trend has increasingly generated jobs over the years but unfortunately even India is not free from the algorithmic management of the workforce who live under constant pressure to perform and maximise on deliveries. Gig workers are perennially caught in the nightmarish thoughts that their IDs will be suspended or their accounts will be deactivated if they don't fulfill the unknown requirements of the algorithm. More from India Has Nimisha Priya been pardoned in Yemen? How Grand Mufti's big claim has been refuted Additionally, aggregators have begun to take higher commissions with companies like Uber and Ola taking 40 per cent and 30 per cent commissions, respectively, from their drivers. Long shifts, unsafe working conditions, and dangerous driving have grown to be a part of every Indian gig worker's life. The gig economy is a sector with massive potential in the Indian context, with the ability to provide up to 90 million non-farm jobs and an additional 1.25 per cent to the GDP in the long-term. However, as platforms become ambitious and workers become frustrated, the widespread labour rights issues could overshadow the economic boom. Global push for platform regulation A pioneer in gig economy legislation, Spain's left-wing government passed the Rider's Law in August 2021. This law reclassifies Spain's food-delivery 'riders' from freelancers to employees, thus giving them access to rights such as fixed pay and sick leave. However, platform companies in the Spanish market such as Deliveroo and Uber Eats have found it easier to face the fines incurred by non-compliance rather than reclassify their delivery riders as employees and raise operational costs. Three years after the law passed, facing legal challenges, Glovo announced its decision to switch to an employment-based model. This switch is predicted to lose the company €100 million in profits over 2025. Spain's story is a key example in the progress of gig economy regulation: the introduction of laws with lagging implementation. India is one of the largest contributors to the global gig economy and, according to Niti Aayog, is projected to grow to 25-35 million gig workers by 2029-30. Unfortunately, this gross expansion comes at the cost of the workers themselves. Rajasthan, under the Congress chief minister Ashok Gehlot, pioneered gig economy regulation in 2023 when it passed The Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act, 2023. However, two years and a change in governance later, the Act is still to be implemented. In May 2025, Karnataka passed The Karnataka Platform Based Gig Workers (Social Security and Welfare) Ordinance, 2025 in an attempt to regulate the gig economy after an increase in strikes in the Bengaluru region. Implementation of the measures detailed in the Act are said to begin six months after passing, and thus only time will tell. Both the International Monetary Fund and World Bank have recognised the labour rights issues of the gig economy as an important one. The IMF recognises that regulating gig economy platforms as employers is a central public policy issue. This would enable the gig workers to formally engage in collective bargaining and create a grievance redressal mechanism. It also emphasises the need for regulations that address income instability, lack of job security, and the absence of social protection for gig workers. The World Bank has noted that inclusive legal infrastructure is considered crucial for sustainable gig work and consequently recommends an incremental, data-driven approach. By using regulatory sandboxes to innovate and experiment with social insurance, collect gig worker data, and build a regulatory framework, the World Bank presents a model that can allow stakeholders to keep pace with digital labour markets. STORY CONTINUES BELOW THIS AD When interests collide The gig economy is new. New for consumers, for labourers, for business, and for the government. It is ultimately a game of satisficing where companies look for profit, workers look for salary and the government looks for policy. As the gig economy and digital labour markets dynamically evolve and change, countries around the world attempt to regulate them. The problem, however, will not be the introduction of laws but rather the implementation of them. For a country like India, where digital is the newfound soul to function, the government must ensure that the hearts that beat behind this revolution are not caught in an unending tale of despair. From labour-friendly policy formation to ensuring companies follow them to the tee or else face strict penalties, the government can make a huge difference in the way the country's gig economy functions. Unlike Spain, where profit-driven businesses stand in defiance of increasing regulatory pressures that have been mounting since 2021, India can script a hopeful and helpful gig economy future.

Working long hours? Here's how it changes the brain
Working long hours? Here's how it changes the brain

Time of India

timea day ago

  • Health
  • Time of India

Working long hours? Here's how it changes the brain

A recent study reveals that prolonged working hours can induce alterations in brain structure, potentially impacting cognitive and emotional well-being. Researchers analyzing brain scans of healthcare workers found significant changes in regions governing executive functions and emotional regulation among those working over 52 hours weekly. Are you working longer hours? Well, we don't know how it would reflect on your paycheck, but it's certainly going to alter your brain. Yes, that's right. A new study has found that long working hours could alter the brain structure and even affect your cognitive and emotional health. A new study found that long working hours may alter the structure of the brain. The findings of the study are published in the Occupational and Environmental Medicine journal. Long working hours and the brain The preliminary findings from the new study suggest that working long hours changes the structure of the brain , particularly the areas associated with emotional regulation and executive function, such as working memory and problem-solving. The study has confirmed that overwork may lead to neuroadaptive changes, which affect cognitive and emotional health. Previous studies have found that long working hours are associated with increased risk of cardiovascular disease, metabolic disorders, and mental health issues. Overwork kills more than 800,000 people every year, according to the International Labour Organisation (ILO). The study Though the behavioural and psychological consequences of working overtime were known, its neurological mechanisms and anatomical changes weren't explored. The researcher explored this, and to understand it they analysed structural brain volume and compared the impact of overwork on specific brain regions in healthcare workers, who regularly worked 52 or more hours a week. They analysed data from the Gachon Regional Occupational Cohort Study (GROCS) and MRI scans carried out for a research project on the effects of working conditions on brain structure. The participants in the GROCS were asked to take an additional MRI scan, and the final analysis included 110 people after excluding those with missing data or poor MRI image quality. Among the participants, most of them were clinicians: 32 worked excessive weekly hours (28%); 78 worked standard hours. The findings The researchers noticed that people who were working long hours every week were significantly younger, had less job experience, but were more highly educated than those clocking up regular hours. The researchers used voxel-based morphometry (VBM), a brain imaging technique, to understand the changes. They found that people who worked 52 or more hours a week had significant changes in the regions of the brain associated with executive function and emotional regulation, compared to those who worked regular hours. People working long hours had a 19% larger volume in the middle frontal gyrus compared to those with standard working hours. This part of the brain has a crucial role in various cognitive functions, particularly in the frontal lobe. It's linked with attention, working memory, and language-related processing. VBM showed peak increases in 17 regions, including the middle frontal gyrus, the superior frontal gyrus, which is involved in attention, planning, and decision-making, and the insula. The insula has a key role in integrating sensory, motor, and autonomic feedback from the body. This includes emotional processing, self-awareness, and understanding social context. 'While the results should be interpreted cautiously due to the exploratory nature of this pilot study, they represent a meaningful first step in understanding the relationship between overwork and brain health,' the researchers said. 'Notably, the increased brain volumes observed in overworked individuals may reflect neuroadaptive responses to chronic occupational stress, although the exact mechanisms remain speculative,' they added. 'The observed changes in brain volume may provide a biological basis for the cognitive and emotional challenges often reported in overworked individuals. Future longitudinal and multi-modal neuroimaging studies are warranted to confirm these findings and elucidate the underlying mechanisms. The results underscore the importance of addressing overwork as an occupational health concern and highlight the need for workplace policies that mitigate excessive working hours,' they said.

From Jan Dhan accounts to mutual fund SIPs, here is how you can empower your domestic staff financially
From Jan Dhan accounts to mutual fund SIPs, here is how you can empower your domestic staff financially

Time of India

time2 days ago

  • Business
  • Time of India

From Jan Dhan accounts to mutual fund SIPs, here is how you can empower your domestic staff financially

For 48-year-old Kakoli Chowdhury, charity literally began at home. Watching her mother help their domestic staffers and sponsor their kids' education imbibed in her an innate need to do the same. Little wonder then that Chowdhury is currently paying Rs.16,000 a month as coaching fee for her helper, Uma Maitri's son, who is in Class 12. This is only one of the many initiatives she has undertaken over the years to empower her household staffers, contributing and encouraging them to start savings and investments . Many others like Chowdhury have been stewarding a silent, overt crusade to support this economically vulnerable segment—maids, cooks, drivers, nannies—who help in the smooth running of households, but remain bereft of financial safety nets. The National Sample Survey Office (2011-12) has pegged the number of domestic workers in India at 3.9 million, with 2.6 million women, while the International Labour Organisation estimates this number to be much higher at around 20-80 million. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Artificial Intelligence Data Science Leadership CXO Degree Others Public Policy Digital Marketing MBA Product Management Cybersecurity Technology PGDM Data Science Finance Healthcare Operations Management Design Thinking Management others healthcare Data Analytics MCA Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details This unorganised and marginalised sector has had few financial rights or economic security, with little or no long-term savings and funds to educate their children or retire in old age, no health insurance for medical needs or life insurance, and meagre knowledge about investing avenues. Women helpers are in a worse situation, many of them working as single mothers and sole bread winners. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » While several government schemes, including those for life and health insurance, pension , affordable housing, etc., have been launched in the past few years to improve the financial security for this segment, not many domestic workers are aware of or know how to benefit from these (see table). 'There are thousands of welfare schemes that they don't know about. This is why, be it schemes or investing, it's important to first educate the households and employers, who can then help their domestic helpers,' says Roopa Venkatkrishnan, Director, Sapient Wealth, a Mumbai-based financial advisory and distribution firm. Venkatkrishnan has been walking the talk since 2004 by holding financial literacy sessions for both the households and domestic staffers. Going a step further is Bengaluru-based Haqdarshak ( a for-profit social enterprise, which helps low-income segments access government welfare schemes. It claims a digital database of over 7,500 state and central welfare programs—health and life insurance, disability pension, education subsidies, housing subsidies, among others—and offers a 'Yojana Card' that can tell the worker about the schemes he is eligible for. It could help your helpers if you can inform them about it. Apprising them of the government welfare schemes is not the only way you can help your domestic staffers. They need assistance on every front: identifying saving and investing options for their kids' education and medical needs, tech-enablement, budgeting advice, career guidance, and saving up for their old age. 'You don't necessarily need to become their financial adviser, but guidance in navigating the formal financial systems, hand-holding and helping them with forms or digital onboarding, explaining terms, or demonstrating digital tools can also lead to a tremendous improvement in their financial stability and well-being,' says Atul Shinghal, Founder and CEO, Scripbox. Mumbai-based Namrata Vishal Lodaya knows about hand-holding, having helped all her three maids and two cooks with financial advice on career, investment, entrepreneurship, savings and much more. 'I taught business skills to Varsha tai to help open her beauty parlour and offered Pushpa tai's daughter career guidance in fashion designing,' says the 40-year-old. Here are some areas you can also help the people who make a critical contribution in ensuring that your lives run smoothly. Savings & investments As a first step, if your helpers don't have a bank account yet, help them open one under the Pradhan Mantri Jan Dhan Yojana. There is no minimum balance to be maintained and account holders get a RuPay debit card. They also get a Rs.2 lakh accident insurance with RuPay card, an overdraft facility up to Rs.10,000, and eligibility for various government schemes with the account. Rashida, 40 Chawla pays an annual premium of Rs.12,617 for a Rs.4 lakh family floater health plan for Rashida and her two children. Shikha Chawla (right) 42, Noida Next, prompt them into investing their money instead of keeping it in bank. You could start them on simple instruments that are easy to understand, such as a recurring deposit, fixed deposit, Post Office term deposit or even the Public Provident Fund (PPF) (see table). For women, a good option is the Mahila Samman Savings Certificate, and for their girl children, the Sukanya Samriddhi Yojana, both of which offer high interest rates. While Lodaya helped her maid, Priya, 39, open a bank account and fixed deposit, Chowdhury went a step ahead. She started a recurring deposit and Sukanya Samriddhi account by contributing Rs.10,000 for each account for her maid, Ram Dulari, and her daughter, in 2012. She also took other helpers to the post office to invest in Kisan Vikas Patra (KVP) and National Savings Certificates (NSC). 'I always felt they should save more by investing in instruments that offer a higher interest rate, instead of keeping the money in bank,' says the Delhibased IT professional. Investment options for your domestic helpers Venkatkrishnan even advocates mutual fund SIPs for long-term savings and high returns. 'I tell them that they can invest in mutual funds with as low a sum as Rs.100 or Rs.500 and get high returns over the long term,' she says. 'Another important thing is to tell them to keep away from chit funds and move to formal investing options like FDs. Insurance companies have also made deep inroads and sell plans pitching high returns, but they need to move to better forms of investing,' says Mrin Agarwal, Founder, Finsafe India. Agrees Venkatkrishnan: 'People lose money through Ponzi schemes, insurance plans and chit funds and should know about it.' Buying insurance Another financial pitfall for this segment is medical and hospitalisation expenses . 'Most families with limited means try to secure food, shelter and education, but forget about emergency health fund. During an illness, they are forced to look around, desperate for help from employers, friends, anyone,' says Noida-based Communication Consultant Shikha Chawla. She bought a family floater health insurance plan worth Rs.4 lakh for Rashida and her two children in 2018. She continues to pay the annual premium of Rs.12,617 even though Rashida no longer works for them. A good option is the government scheme, Ayushman Bharat or the Pradhan Mantri Jan Arogya Yojana, which offers a Rs.5 lakh cover per family for secondary and tertiary care hospitalisation. 'I also tell them and their employers to register with hospitals with their ration cards so that they can get free treatment,' says Venkatkrishnan. For life insurance, you can help them buy the Pradhan Mantri Jeevan Jyoti Bima Yojana as it can secure their children in case of the helpers' untimely death. For 18-50 age group with a bank account, it offers a life cover of Rs.2 lakh and the annual premium is `436, which is auto-debited from the bank account. The scheme is offered by the Life Insurance Corporation and other life insurers that provide it on similar terms. Financial & tech literacy One of the most important contributions you can make in your helpers' lives is by teaching them the basics of finance and making them tech-literate. 'Guide them in using UPI apps like Google Pay or PhonePe. This drastically simplifies transactions, bill payments and transfers, reducing reliance on cash,' says Shinghal. Also teach them about basic concepts like household budgeting, long-term investments, covering risk through insurance, taking loans, or even starting their own small businesses. Help them with documen-tation and online access to welfare schemes. Lodaya has mastered the art of leading by example when it comes to upskilling her helpers. 'I talk to them about how I manage my finances or use technology and then they follow suit. For instance, when I needed to raise funds for my husband's medical expenses, I used Ketto, and when Priya ben's husband fell ill later, she managed to raise Rs.55,000-60,000 by doing the same,' says Lodaya. Pension & loans While saving for retirement may seem difficult for helpers trying to survive from month to month , the government Atal Pension Yojana is a good vehicle that is open to all savings bank/post office savings bank account holders in the 18-40 age group. It offers a guaranteed minimum monthly pension of Rs.1,000-5,000 to the subscriber after 60 years, and after him to his spouse. When it comes to taking loans, try and desist your helpers from taking informal, unsecured loans with high interest rates. Steer them towards formal bank loans. 'I tell the employers to give their helpers salaries via cheques, so that they can show income and file their tax returns. This is because with three years of returns they can avail of home loans easily,' says Venkatkrishnan. If loans are not feasible for them, help them out with personal contributions, say, for their children's education, weddings, etc.

Formal jobs, self-employment rising: statistics ministry
Formal jobs, self-employment rising: statistics ministry

Mint

time6 days ago

  • Business
  • Mint

Formal jobs, self-employment rising: statistics ministry

New Delhi: Formal jobs and self-employment are on the rise in India while the youth unemployment is below the global average, the statistics ministry said on Wednesday. The ministry stated that formal employment is rising steadily, with nearly 13 million net subscribers for provident fund getting added in FY25 under the Employees Provident Fund Organisation (EPFO), more than double the number in FY19. Since September 2017, more than 77.3 million net subscribers have joined, including nearly 2 million in April 2025 alone —indicating a strengthened formal workforce and greater social protection coverage, the ministry stated. A structural shift is also underway: Periodic Labour Force Survey data indicates that self-employment increased from 52.2% to 58.4%, while casual labour declined from 24.9% to 19.8%, the ministry said, adding that this reflects a move toward entrepreneurial, autonomous livelihoods, supported by government initiatives. The ministry also said Labour Force Participation Rate (LFPR) for individuals aged 15 years and above has increased from 49.8% in 2017–18 to 60.1% in 2023–24. During the same period, the worker-population ratio (WPR) rose from 46.8% to 58.2%, while the unemployment rate declined sharply from 6% to 3.2%. 'These indicators suggest greater absorption of the workforce into productive employment. Notably, the youth unemployment rate fell from 17.8% to 10.2%, which is lower than the global youth unemployment rate of 13.3% as per International Labour Organisation's World Employment and Social Outlook 2024,' the ministry stated. The ministry cited Reserve Bank of India's database to say total employment in the country increased from 475 million in 2017–18 to 643 million in 2023–24—an addition of 168 million jobs over six years. The ministry also said, quoting PLFS estimates, that the average daily wage for casual labourers (excluding in public works) increased from ₹ 294 in July–September 2017 to ₹ 433 in April–June 2024. The average monthly earnings of regular salaried employees rose from ₹ 16,538 to ₹ 21,103 during the same period. 'These upward trends demonstrate not only increased income levels but also enhanced job stability and quality,' the ministry said. The recent rise in agricultural employment is linked to strengthened rural activity and policy support, including ₹ 122.5 crore in funding for agri-startups—driving innovation and sustainability in the sector—it said. India's demographic dividend is being actively cultivated through targeted initiatives, which aim to bridge the gap between education and employment, the ministry said. The economy is also witnessing job growth in emerging sectors such as startups, global capability centres (GCCs), digital services and the gig economy, creating new and diverse employment opportunities for the youth, it added. India's employment narrative is one of forward momentum, not decline, it added.

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