Companies are on the constant lookout to increase the rate of growth with significantly lower cost to the company on the employees front. Especially, IT companies lay emphasis on consolidating revenue with lesser number of employees. But HR experts keep screaming that employees are the biggest asset of any company and they lead to success in this competitive world. Is the steep revenue increase possible when the employees size is not enlarged? Is it a workable solution to enhance the productivity by slowing down the pace of recruitment? There will be umpteen numbers of questions to be probed and appropriate answers are to be explored. This article highlights conceptual framework on Non-Linear HR Model, methods to increase productivity, HR functions revisited in Non-Linear HR Model and essential needs for IT employees in Non-Linear HR Model.

What is a linear model in HR? Revenue growth of a company is strongly correlated with the number of people employed. Hence, it is obvious that the human capital of a company is pivotal in taking the institution to greater heights. Precisely, employees will make or break the organization. On the contrary, IT companies are focusing now on implementing Non-Linear HR model, that is, increasing growth with lower number of recruitment. Especially, in the decade to come, many of the IT companies may decide on implementing Non-Linear HR model. Abhiram Eleswarapu and Avinash Singh, Analysts, BNP Paribas, say that for Infosys to achieve a 20% compound annual growth rate in revenue at current productivity level, it would have to employ a million people in the next 10-12 years. The Times of India reveals that the top-tier companies like Infosys, Wipro, TCS and HCL have about 10-12% of their earnings coming from non-linear initiatives. Most of the IT companies are looking to raise this to a quarter of revenues over the next five years.

Some of the basic differences between linear and non-linear HR models are mentioned in Exhibit 1.

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