Trouble seems to be brewing for the world’s largest coal mining company, Coal India Ltd (CIL) as it faces acute shortage of executive manpower. The company has an executive workforce comprising about 15,000 officers, which is a part of a total workforce of about 390,000 employees spread across eight subsidiaries nationwide. This shortage comes at a time when the company is looking to expand its production to match the increasing coal demand in the country, and can be a serious concern.
Coal India’s non recruitment period which was from 1995-2006/07 has had a grave impact on the recruitment figures. According to the company, an effective approach to stabilize these numbers will be to recruit large number of employees in one go. The last three years saw hiring of 3,000 employees. However, due to the retirement age factor of senior executives, the company also loses experienced staff. Currently, the average age of CIL executives is 47. This is, however, set to change as and when the company starts inducting more employees at a junior level.
People Matters’ Take: The on-going period is very crucial for Coal India’s growth. The company’s IPO, which is touted as one of India’s largest IPO has debuted at 18% premium over the issue price of Rs.245 per share. Shortage of experienced, talented and skilled manpower may run a wave of negative sentiment in the market thereby impacting its fund raising exercise.