Suggestion On How Companies Can Over-come The Effects Of Recession On Compensation.

Hi All,
Request your Suggestion on how companies can over-come the effects of recession on compensation.

There you are!!
You are here one of the most complicated issue for last one year. Nobody, NOBODY here comes up with a single line solution.
Nobody dares to answer you.

hi deepa,
tricky one. no increase for the time being. but hoping for the best, include it in the PIPs / bonuses. few ones who are desperately looking for hike, will move out. less employees, bit more compensation.

Dear Deep,
Few only dare to give you advices, right? Shhhhh... thier fingers burn when they type it!
1. Stop any type of increment.
2. Find out all unnecessary posts and extra tails in every nook & corner, then CUT it!
3. Reduce use of all stationaries with memos to each and every department & division managers.
4. Find out the employees who can handle different jobs simultaneously.
5. Use one secretary for minimum 2 managers.
More advice are EXPENSIVE!:icon1:

Dear Deepa,

Really its a good discussion deepa. according to me few strategies should be made........

1- outsourcing the payroll. benefits = Major cost cutting by involving less man power+no headache of purchase parole software+less papper work+time saving+ reduced penalties on legal mistakes.

2.outsourcing of recruitment process. Benefits= Time saving+ cost cutting by involving less manpower+ enough time to concentrate on other HR activities.

3. Dont hire new employee for the senior position, do competency mapping and multi skilled mapping and find out to identify the real top potential and multi skilled employees who can handle different jobs simultaneousland use these employees for filling up that gap through Increasing job responsibility ,or job rotation,or through promotion. Benefits from this activity- cost cutting+building employee morale+employee retention.
4. Review the employee performance evaluation to determine that company cannot afford to lost.
5- Try to avoid outsourced training consultant and prefer internal training - after doing multi skill test , you will get many multi skilled persons who can deliver training on different subject or can be great mentor. use that employee and give them chance to saw their talent.
Benefits= building employee morale+cost cutting+ carrier planning+ internal branding
6.- Reduce use of all stationeries.
7. Give normal increment to the employee and show them a long term vision.
8- keep them motivated and busy.

There are so many others activity also to overcome this recession,but i think this is enough, to discuss here.if you required than sure i will provide you.

Plz dont forget to give feed back.

Hi deepa,
i agree with satyam,
as per todays sceinario cost cutting is one of the best way to minimize the
resources specially finncial, apart of that you should go for cutting of extra expenditures
like stationary and all that.Employees which are not of much use can be send on holidays
or if necesssary can be downsized.

I would like to give thanks to Deepa for bringing up the topic and to Satyam's response who had given me more confidence to go ahead with the strategies. It's the performance evaluation and more staff engagements to show that the company cannot afford the loss that I feel so strongly to push. Being in HR you have access to each of employees compensation and benefit and you'll see who is more hardworking and who are slacking. Evaluating the strenghts and weaknesses of each employee and preparing recommendations on how we can get the most out of current human capital especially in critical situations or economic conditions is a good strategy. You are rigt...Cost Cutting+building employee morale+employee retention!

Recession and India in oct-09 - interesting,
I believe most of the companies are going ahead with good increment as per the economic times.
The impact of Recession was list on India, as per the definition
"Recession is the economy shrinking for two consecutive quarter with decease in GDP"
Thank you
Sarfaraz

I guess, the issue in present time, is no longer relevant.
Now, the idea should be on "Capitalizing on the lessons learned from the great Recession".
Let us be forward-looking.
Regards.

Hi,

As far as my concern, “Recession is in our MIND not in the MARKET”;

There is a story about a man who sold hot dogs by the roadside. He was illiterate, so he never read newspapers. He was hard of hearing, so he never listened to the radio. His eyes were weak, so he never watched television. But enthusiastically, he sold lots of hot dogs. His sales and profit went up.

He ordered more meat and got himself a bigger and a better stove. As his business was growing, the son, who had recently graduated from college, joined his father. Then something strange happened. The son asked, "Dad, aren't you aware of the great recession that is coming our way?" The father replied, "No, but tell me about it." The son said, "The international situation is terrible. The domestic is even worse. We should be prepared for the coming bad time.

"The man thought that since his son had been to college, read the papers, and listened to the radio, he ought to know and his advice should not be taken lightly. So the next day, the father cut down his order for the meat and buns, took down the sign and was no longer enthusiastic.

Very soon, fewer and fewer people bothered to stop at his hot dog stand. And his sales started coming down rapidly. The father said to his son, "Son, you were right. We are in the middle of a recession. I am glad you warned me ahead of time."

IF AN ORGANISATION OR AN INDIVIDUAL HAVE THE FOLLOWING VALUES, RECESSION WILL NOT BE A FACT.

1. DELIGHTING THE CUSTOMER

2. PASSION FOR PERFORMANCE: Work with CAN DO Attitude

3. ENERGY FOR RENEWAL: Continous Improvement in the Process

4. WINNING TOGETHER: Sharing Ideas, Work and finally Victory.

Regards,

Jaheer Ismail