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GLOBAL MELTDOWN

Understand which HR processes are most affected during a declining market economy, learn to manage employee morale, loyalty, and stress levels effectively. Discover essential HR strategies to optimize manpower, redesign training, and enhance communication. Explore the application of the Kaizen principle and see recession as an opportunity for strategic HR planning. Implement measures to cut costs while maintaining corporate input and prioritizing key HR strategies.

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GLOBAL MELTDOWN

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  1. GLOBAL MELTDOWN MANAGING WORKFORCE DURING RECESSION

  2. GROWING MARKET ECONOMY Starting Point = Willingness to buy

  3. DECLINING MARKET ECONOMY

  4. MOST AFFECTED AREAS Most impacted Mildly impacted Least impacted • Banks • Financial services • Real estate • I.T.

  5. MOST AFFECTED HR PROCESSES • Recruitment • Training • Compensation and Benefits • HR Front Office

  6. EFFECT ON EMPLOYEES • Low Morale • Low Loyalty • Increased Stress Levels • Grapevine • Job Insecurity

  7. KEY HR STRATEGIES • Optimize Manpower Strength • Incorporate Job Rotation • Work on Compensation and Benefits • Redesign Training and Development Programs • Be Proactive, not Reactive

  8. KEY HR STRATEGIES • Have a clear Leadership Strategy • Adopt Flexible Scheduling • Communication to be Transparent and Fair • Streamline Job Descriptions • Ensure Retention of Key Employees

  9. HR PRIORITIES COST IMPACT

  10. APPLICATION OF KAIZEN PRINCIPLE

  11. RECESSIONAN OPPORTUNITY IN DISGUISE • As a Strategic Partner • For Building Future • To Act as a Moral Guardian

  12. ITS TIME TO… • Consolidate and Invest • Enhance Skills and Improve Performance • Implement Changes • Leverage Simultaneously ‘Winning The Princess’ and ‘Slaying The Dragon’ Strategies

  13. 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

  14. MEASURES TO CUT COSTS • 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

  15. CORPORATE INPUTS

  16. 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

  17. 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

  18. 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

  19. 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

  20. “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.

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