Companies do not take such decisions willingly; please understand their situation too. For example, if 50 employees are let go from a company of 200 employees, understand that such a move is made to save the remaining 150. Take it positively. At the same time, companies must have a clear relieving policy in place, and proper notice or compensation must be given to employees. If this is not done correctly, please stand up for your rights, be strong, and consider issuing a legal notice. Let us not be the last ones affected.
Regards, Rajesh
From India, Madras
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Regards, Rajesh
From India, Madras
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Dear All,
I completely agree that these decisions are not taken intentionally, but I am against the planning we work on and then not living up to that.
I am just trying to convey that we all have to put in our effort to minimize the effect on the employees who suffer.
I understand being in HR, management doesn't do it intentionally, but even if unintentionally done, what kind of damage it could cause to any employee in terms of attitude, dedication, and stability.
I request all to please take it in a positive manner. This is not against us but, in a way, it's for every professional/working person.
Thanks,
Shweta Jaitly
From India, Coimbatore
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15I completely agree that these decisions are not taken intentionally, but I am against the planning we work on and then not living up to that.
I am just trying to convey that we all have to put in our effort to minimize the effect on the employees who suffer.
I understand being in HR, management doesn't do it intentionally, but even if unintentionally done, what kind of damage it could cause to any employee in terms of attitude, dedication, and stability.
I request all to please take it in a positive manner. This is not against us but, in a way, it's for every professional/working person.
Thanks,
Shweta Jaitly
From India, Coimbatore
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Good Topic,
I think government bodies should intervene and establish strict rules to safeguard employees' interests. We can understand the current market situation and competition among various sectors, but hiring is creating frustration in our youth. I believe this practice is not leading us towards a brighter and more prosperous India. Companies should revise their hiring policies and opt for hiring on a contract basis. If employees are let go after the contract period, the frustration level would be much lower. Nevertheless, we should remain hopeful for the best. Only a few companies adhere to a hiring and firing policy. I am employed at a South Korean multinational corporation where employees have been working for over 30 years worldwide.
All the best, and make sure to conduct a background check on the company before you decide to join.
From India, Delhi
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I think government bodies should intervene and establish strict rules to safeguard employees' interests. We can understand the current market situation and competition among various sectors, but hiring is creating frustration in our youth. I believe this practice is not leading us towards a brighter and more prosperous India. Companies should revise their hiring policies and opt for hiring on a contract basis. If employees are let go after the contract period, the frustration level would be much lower. Nevertheless, we should remain hopeful for the best. Only a few companies adhere to a hiring and firing policy. I am employed at a South Korean multinational corporation where employees have been working for over 30 years worldwide.
All the best, and make sure to conduct a background check on the company before you decide to join.
From India, Delhi
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Hi,
There are posts being taken on a personal basis here. Let's avoid that; first and foremost, every thread is for knowledge sharing, so let's share it rather than arguing with each other.
As Shweta has brought up a serious concern being faced by all the major giants and even mid-segment companies to a certain extent, I would like to say that yes, it is a serious concern, and I appreciate that you could bring that up for public discussion.
We still do not know the root cause of this problem, and we are commenting based on assumptions. For every company, the reason may not be the same, such as cost-cutting. For some companies, it may be business segregation, technology enhancement (NA to IT industry), etc.
If it is due to the above reasons, it is justified that they do not require the same workforce now; the need for manpower has decreased. However, in certain cases where only cost-cutting is involved and they resort to retrenchment, it is not fair enough. For cost-cutting, you may not lay off 50% of your company's manpower. In certain cases, what is shown to the external world and the actual reasons are always different. We can only come to a good conclusion if we know the root cause, as I mentioned before.
I would appreciate comments on this.
Regards,
From India, Ahmadabad
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There are posts being taken on a personal basis here. Let's avoid that; first and foremost, every thread is for knowledge sharing, so let's share it rather than arguing with each other.
As Shweta has brought up a serious concern being faced by all the major giants and even mid-segment companies to a certain extent, I would like to say that yes, it is a serious concern, and I appreciate that you could bring that up for public discussion.
We still do not know the root cause of this problem, and we are commenting based on assumptions. For every company, the reason may not be the same, such as cost-cutting. For some companies, it may be business segregation, technology enhancement (NA to IT industry), etc.
If it is due to the above reasons, it is justified that they do not require the same workforce now; the need for manpower has decreased. However, in certain cases where only cost-cutting is involved and they resort to retrenchment, it is not fair enough. For cost-cutting, you may not lay off 50% of your company's manpower. In certain cases, what is shown to the external world and the actual reasons are always different. We can only come to a good conclusion if we know the root cause, as I mentioned before.
I would appreciate comments on this.
Regards,
From India, Ahmadabad
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Hi,
The fact is companies hire when they are in profits and fire when they are in loss. One has to understand and be mentally prepared and know the basic logic of the companies' behavior. Just arguing, discussing, or feeling bad about the situation does not work out. Private companies are meant for that.
Regards,
Aqua
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The fact is companies hire when they are in profits and fire when they are in loss. One has to understand and be mentally prepared and know the basic logic of the companies' behavior. Just arguing, discussing, or feeling bad about the situation does not work out. Private companies are meant for that.
Regards,
Aqua
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Hi Shweta,
My opinion is that generally organizations are not mature enough when they do manpower planning and their utilization, so they face such challenges. Secondly, whenever we think of cost-cutting, manpower is the first resource they consider, which is unfortunate. In such difficult times, it's better to concentrate on generating more revenue (Mr. Laloo Prasad's opinion on railways, which is very true), which probably is a better and easier option and professionally right too since manpower is the only resource that your competitors cannot copy and are thus invaluable.
Last but not least, when organizations have good resources, they concentrate on making policies that are harsh on most occasions, and when they lose them, they resort to mass-scale aggressive hiring, reflecting the immature nature of organizations. Would like to know others' opinions too.
Regards,
Bishwajeet
From United States, Long Beach
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My opinion is that generally organizations are not mature enough when they do manpower planning and their utilization, so they face such challenges. Secondly, whenever we think of cost-cutting, manpower is the first resource they consider, which is unfortunate. In such difficult times, it's better to concentrate on generating more revenue (Mr. Laloo Prasad's opinion on railways, which is very true), which probably is a better and easier option and professionally right too since manpower is the only resource that your competitors cannot copy and are thus invaluable.
Last but not least, when organizations have good resources, they concentrate on making policies that are harsh on most occasions, and when they lose them, they resort to mass-scale aggressive hiring, reflecting the immature nature of organizations. Would like to know others' opinions too.
Regards,
Bishwajeet
From United States, Long Beach
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Dear Shweta, This is nowdays tectis, unfortunately, such companies has no proper direction and are having centralize system methodology. At that point cost cutting is just one excuse nothing else.
From India, Bardoli
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From India, Bardoli
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Hi Shweta,
Having worked in the industry for over 12 years now, these thoughts have often crossed my mind. As we are a growing economy, there are both boons and banes of it. While we reap rewards of the foreign currency inflows, it is time we learn the way businesses operate globally. HR is no longer viewed as a support function by many corporates and is instead more oriented to become a business function. The business situations are very dynamic, and we have to constantly keep evaluating our position vis-a-vis the market and make structural changes accordingly. However, I'm not trying to advocate the correctness of layoffs. In my opinion, it is a very harsh truth to digest for the person affected.
While we dissect the issue here, let's also not forget the other side of the coin where companies get affected by the skyrocketing salary demands of the people they recruit and still have to go through the pains of offer rejections, no-shows, etc. This does not justify the unholy act of the employers but is also an issue to be debated as we discuss the issue of layoffs/pink slips.
I agree with Tania's views where we should do a proper introspection before we go out and hire for a new position. We also have to acknowledge that there are times when companies make a wrong decision, and it is never too late to correct it. But at the same time, we should avoid these mistakes. As an HR professional, it becomes more of our responsibility to ensure that we do not crumble under the management pressure of hiring and present them with a better value proposition that helps avoid such situations. While I empathize with the ones affected, I also accept the market realities led by the demand and supply forces that drive businesses for regular changes in their strategies, leading to such situations.
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Having worked in the industry for over 12 years now, these thoughts have often crossed my mind. As we are a growing economy, there are both boons and banes of it. While we reap rewards of the foreign currency inflows, it is time we learn the way businesses operate globally. HR is no longer viewed as a support function by many corporates and is instead more oriented to become a business function. The business situations are very dynamic, and we have to constantly keep evaluating our position vis-a-vis the market and make structural changes accordingly. However, I'm not trying to advocate the correctness of layoffs. In my opinion, it is a very harsh truth to digest for the person affected.
While we dissect the issue here, let's also not forget the other side of the coin where companies get affected by the skyrocketing salary demands of the people they recruit and still have to go through the pains of offer rejections, no-shows, etc. This does not justify the unholy act of the employers but is also an issue to be debated as we discuss the issue of layoffs/pink slips.
I agree with Tania's views where we should do a proper introspection before we go out and hire for a new position. We also have to acknowledge that there are times when companies make a wrong decision, and it is never too late to correct it. But at the same time, we should avoid these mistakes. As an HR professional, it becomes more of our responsibility to ensure that we do not crumble under the management pressure of hiring and present them with a better value proposition that helps avoid such situations. While I empathize with the ones affected, I also accept the market realities led by the demand and supply forces that drive businesses for regular changes in their strategies, leading to such situations.
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I think the solution to this issue is proper manpower planning. How? We have to align the organization's vision, long-term and short-term goals with departmental goals and drive KPIs so that we may hire accordingly and retain them.
From Pakistan, Karachi
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From Pakistan, Karachi
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Dear Shwetha,
I would like to shed some light on this issue.
I am working as an HR executive in Infopark Cochin. Ours is an IT company with a staff strength of around 70 in this branch. Like many others, the US recession is impacting many of our US government-based projects, and as a result, we are under immense pressure from the US headquarters to provide them with details regarding manpower utilization. We have employees working in a salary range of 8K-15K per month, and they deliver productivity based on their compensation.
During critical situations, we are compelled to lay off trainees and junior executives and hire one qualified candidate worth 3-4.5L who can think equivalent to five individuals. Sometimes, we are forced to implement such strategies for the very survival of the organization.
In this era of intense competition, we are obligated to retain and nurture the best talents. Downsizing usually impacts those employees who are considered less crucial for the company's day-to-day operations. Meeting requirements does not automatically make a person a critical or indispensable resource. Therefore, to sustain themselves, many companies may reduce their peripheral resources (support staff) to safeguard the core resources.
Hope this explanation clarifies the situation to some extent.
From India, Kochi
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I would like to shed some light on this issue.
I am working as an HR executive in Infopark Cochin. Ours is an IT company with a staff strength of around 70 in this branch. Like many others, the US recession is impacting many of our US government-based projects, and as a result, we are under immense pressure from the US headquarters to provide them with details regarding manpower utilization. We have employees working in a salary range of 8K-15K per month, and they deliver productivity based on their compensation.
During critical situations, we are compelled to lay off trainees and junior executives and hire one qualified candidate worth 3-4.5L who can think equivalent to five individuals. Sometimes, we are forced to implement such strategies for the very survival of the organization.
In this era of intense competition, we are obligated to retain and nurture the best talents. Downsizing usually impacts those employees who are considered less crucial for the company's day-to-day operations. Meeting requirements does not automatically make a person a critical or indispensable resource. Therefore, to sustain themselves, many companies may reduce their peripheral resources (support staff) to safeguard the core resources.
Hope this explanation clarifies the situation to some extent.
From India, Kochi
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