A Message to Corporate India: The Necessary Pivot
As companies across India tighten employee perks and rein in overheads to combat rising costs and a shifting productivity landscape
Times of India - "Companies tighten employee perks amid cost, productivity push" - Aug 2026
, we find ourselves at a critical juncture. It is time for a candid, "no-nonsense" conversation about the relationship between corporate health and employee contribution—a conversation that mirrors the stark realities of "ECD vs. ECD" that I addressed in my past
Letters to L&T Employee - "ECD Vs. ECD" - 13 July 1986.
If Prime Minister Narendra Modi were to address Corporate India today on this very issue, his message would be clear: We are playing a grim battle for survival in an increasingly competitive global economy. To secure the long-term prosperity of both the enterprise and the individual, we must shift our focus from mere "perks" to "performance."
The Two Sides of ECD
In my 1986 letter, I introduced the concept of ECD vs. ECD. Back then, it represented Employee Convertible Debenture (the company’s commitment to its employees' future) versus the Economy (Co-operation) Drive (the employees' commitment to the company's survival).
Today, that struggle takes on a new form: Employee Compensation/Benefits versus Efficiency (Co-operation) Drive.
The logic remains unchanged:
- The Commitment: When a company invests in its people—through stock options, equity, or robust benefits—it is an act of faith. It is designed to make the employee feel that if the company prospers, their own future prospers.
- The Demand: For that prosperity to be realized, the company must fight—like hell—to cut costs, eliminate waste, and increase productivity. If, in this fight to stay relevant, some short-term perks must be sacrificed, then they must be sacrificed.
A Call for a "No-Nonsense" Fight
As Prime Minister Modi might emphasize, Corporate India must reverse the trends of rising costs and shrinking margins. The mandate for every employee, from the shop floor to the boardroom, is to become a manager of productivity. We must fight:
- Lethargy and Complacency, which are the true enemies of global competitiveness.
- Wasteful work practices that dilute our market share.
- Narrow, selfish individual interests that ignore the broader health of the organization.
The current economic environment does not allow for a "business-as-usual" approach. When the danger is at our doorstep, we cannot afford to fight amongst ourselves or cling to redundant perks. Every employee must learn to ask: "What is in the best interest of the company?"
The New Social Contract
Corporate India must understand that the "co-operation" in our current Economy Drive is not optional—it is the middle name of survival. The government is committed to providing a robust ecosystem for growth, but the responsibility for corporate performance rests squarely with the management and the workforce.
Just as I told the L&T team decades ago, we are now saying to Corporate India: The company will give you your ECD (long-term growth and security) if you give the company your ECD (Economy and Co-operation).
It is time to dig in our feet, focus on outcome-linked productivity, and demonstrate the grim determination required to make Indian industry the world's most efficient powerhouse.
Sources
| # | Title | Date | About |
|---|---|---|---|
| 1 | Letters to L&T Employee: ECD Vs. ECD | 1986-07-13 | Details the necessary balance between employee investment and the drive for operational efficiency. |
| 2 | Companies tighten employee perks amid cost, productivity push | 2026-08-19 | Reports on the current trend of Indian companies reducing perks to improve productivity and cut costs. |
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