GLOBAL MELTDOWN

MANAGING WORKFORCE DURING RECESSION

GROWING MARKET ECONOMY

Starting Point = Willingness to buy

DECLINING MARKET ECONOMY

Mildly impactedMost impacted Least impacted

MOST AFFECTED AREAS

•Banks •Financial services •Real estate•I.T.

MOST AFFECTED HR PROCESSES

Recruitment

Training

Compensation and Benefits

HR Front Office

EFFECT ON EMPLOYEES

• Low Morale

• Low Loyalty

• Increased Stress Levels

• Grapevine

• Job Insecurity

KEY HR STRATEGIES

Optimize Manpower Strength

Incorporate Job Rotation

Work on Compensation and Benefits

Redesign Training and Development Programs

Be Proactive, not Reactive

Have a clear Leadership Strategy

Adopt Flexible Scheduling

Communication to be Transparent and Fair

Streamline Job Descriptions

Ensure Retention of Key Employees

KEY HR STRATEGIES

CO

ST

IMPACT

HR PRIORITIES

APPLICATION OF KAIZEN PRINCIPLE

RECESSIONAN OPPORTUNITY IN DISGUISE

As a Strategic Partner

For Building Future

To Act as a Moral Guardian

ITS TIME TO…Consolidate and Invest

Enhance Skills and Improve Performance

Implement Changes

Leverage Simultaneously ‘Winning The Princess’ and

‘Slaying The Dragon’ Strategies

MEASURES TO CUT COSTS

• Reducing Hours Worked Per Week

• Offering Flexible Scheduling

• Eliminating or Reducing Executive-level Bonuses

• Effecting Percentage Reductions in Pay

Freezing Hiring

Freezing Salaries

Substituting Telecommuting for Working at the Office

Auditing Office Supply Expenses

Eliminating unnecessary expenses on Traveling and Meetings

Eliminating or scaling back Corporate Parties, Luncheons

and Events.

Offering Employees Unpaid Vacations/Imposing Mandatory

Holidays

MEASURES TO CUT COSTS

CORPORATE INPUTS

JET AIRWAYS

Bonuses are significantly frozen

Slashed salaries:

Top key executives - 25%

Pilots, Engineers - 20%

Chief executive and operational heads - 25 %

Allowances frozen for trainee pilots, though the pilots who come

below Rs.75,000 per month salary bracket have been left out.

financialexpress.com

TCS: Promotions are on hold Contractual employees in HR team No increase in wages until 2010 Introduction of Cost Management

Programs

SATYAM: Issue of appointment letter and

confirmation kept on hold for this year Replacing high cost HR to low cost HR

thehindu.com

L&T InfoTech : Postponing training program Postponing campus placement

RAMCO SYSTEMS: Cutting salaries of senior employees by 10-15% Laid off 200 employees in May 2008

siliconindia.com

COMPANIES STILL HIRING

Bharati AXA Life plans to add another 4000 employees by end of

2009.

In the Private Security Sector, the expected additional requirement in

the next two years is about 2,00,000.

TCS has made 25,000 technical campus offers for 2009-10, a 13%

increase over its intake of 22,000

Its closest rival, Infosys Technologies, will be making around

20,000 offers in the same period, an 18% increase.

business.outlookindia.com

“No matter how big the problem is, no problem is

insurmountable” -Dr Robert H Schuller's ,Tough Time's Never Last, But Tough People Do.