Sometimes I wish my life had a erase/rewind button

Wednesday, July 25, 2007

Army:Talent:Pension

I once read - I think it was in the Art of War by Sun Tzu- that it takes a 100 villagers to support 1 army man in war. Our armed forces are in similar quandary. The money just can't keep up with expenses. Most of the money goes in supporting salaries and pensions leaving rather little for modernization. There is already a lot of debate on how much money is wasted in hiring people for non essential jobs and unoptimized logistics operations.
In other news corporate India is facing a talent crunch because well most of our university graduates are unemployable the univs being nothing more than mugging shops and rather terrible ones at that too. So there is this line of thought that says that since most soldiers and junior officers retire rather early why not train em to take up jobs in corporate sector. They already have plenty useful skills in some areas, train em in some more functional stuff and there you have ready material to fuel our economic engines.
The idea does have its merits. While its true that many of these guys our in their 30s and 40s (thing soldiers and JCOs) and corporate are seem to prefer young blood; it should work because these folks after a life of moving about may actually be interested in a stable life and may therefore stick with the same firm on a longer term.
What i want to talk about is how it can benefit the army. As we already know that getting people to join army is becoming tough. This is more true for senior officers but the argument I hold for soldiers hold for senior positions also. One many of the army recruits come from poor families. Unless you are brilliant, chances of making it to top institutes (or sports team or whatever) is rather remote. If they don't join army and go for corporate sector as workers chances of their being employable is remote. On the other hand army gives them a great lifestyle for a while and then when u settle down, a nice decent job with training done on maybe govt or corporate+govt money. But then maybe if they managed to join someplace as a worker which trains them and pays them peanuts for years because well they started useless 15-20 years is a long time to catch up.
What the army needs to do is 2 fold. It can actually train the soldier in skill, over years, that may have required maybe a few years in various schools. Then army has canteens and pension and the glamour of its lifestyle. What can really sweeten the deal for the army is that if it says that ok we'll train u well. In return if you start earning maybe say 20k per month in corporate I do not pay u pension. If if income falls below certain limit I start paying pension. If the payout is such that soldier gets partial pension depending on how much is the total earnings and pension reduces as a proportion to the outside earnings which is not linear. Since there is a guarantee that the pension is not stopped permanently, only till the soldier can earn more. And my reducing proportionally those who can work outside will make more money by taking up jobs as opposed to those who decide to live on pension only. This will reduce army's wage bill.
By tying up with corporates for trainings army can reduce its training costs too. Corporate sector can prepare targeted trainings. Army bears the salary bill while the soldier trains and corporate bears the training preparation and may administrating costs. Again a win win.

1 comment:

The Chef said...

http://www.ndtv.com/convergence/ndtv/story.aspx?id=NEWEN20070020286&ch=7/26/2007%2011:09:00%20PM

This is abt Kargill heroes.