2009 may not be good for the salaried class: Shabbir Merchant, Outlook Money
If you are a salaried professional, don't expect the New Year to be a 'great', or even a 'good' year. For those of us who are already employed, here is what we can expect in 2009. Most of your companies are likely to tighten the screws on performance. This may mean longer work hours, work which is not up to your choice, lower tolerance towards non/weak performance. With organizations cutting down on their expansion plans, or faced with lower business growth, forget about the promotion you were expecting. More and more organizations will adopt the Jack Welch model of purging the bottom 10 per cent (asking the bottom performers to go). In some sectors, such as retail, realty, textiles, and apparel, this figure may be higher. Don't be surprised if you are transferred suddenly to a department/location, which is not of your choice. Companies are likely to have a conservative approach on the percent increments, and some sectors could see single-digit increments. Employees in the top quartile of performers in their organization may earn similar increases to previous years. However, the rest may see a drop in percent increments. We are likely to see a few cases of 'increment holidays' and isolated instances of pay reductions. Variable bonuses will be subdued, but I reckon that sales employees may see stronger incentive schemes since organizations will try hard to shore up their revenues. The silver lining in all this is that with organizations going slow on external hiring, they will look for internal candidates. The external job market will also contract, but that does not mean there will be no job opportunities. Job opportunities will be largely fueled by employee attrition/turnover. The demand for freshers will see an acute drop. The practice of fat signing-on bonuses is likely to be suspended. Largely, it is going to be a clear case of higher supply and lower demand. The only exception in the external job market is going to be for the 'star performers'. Here are some pointers for those of us who will get impacted by the above scenario:
- The first priority should be to secure your job and ensure that your name does not figure in the list of outplaced employees. Pull up your socks and ensure that you do not belong to the bottom quartile of performers.
- Be patient. Do not get upset at the lower increment, or delayed promotion.
- Be extra cautious while taking a decision to change jobs. Unless the reason is compelling, you are possibly better off staying in your current organization. If you do choose to make a change, negotiate hard with your new employer for a good hike and, if possible, a 'parachute mechanism' in case you are a victim of a layoff in the first year of your joining. This means you must be given 3-6 months compensation in case you are laid off.
- If you are in one of the highly volatile industries (retail, realty, finance, or banking) and if you feel that your organization is showing signs of vulnerability, proactively scan the external job market.
- If you get an opportunity with a more reliable and stable brand, make the shift (even at the same salary). Look for signs of distress in your organization (delayed salaries, vendors not being paid, senior managers leaving).
- In your existing organization, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try and be in the good books of your boss without compromising your conscience.
- Salaried professionals have to wake up to the reality of what a downturn really means and 2009 is going to showcase enough of it. So far the situation is not as severe as to drop the 'oxygen masks', but yes, the 'seat belt' sign has been switched on.
Brace yourself for some turbulent times in 2009 and let's hope we have a smooth landing as we come out of the downturn in 2010. The author is the chief value creator at Valulead Consulting, a leadership development & executive coaching firm.
[2009 may not be good for the salaried class](http://www.rediff.com/money/2009/jan/05-new-year-may-not-be-good-for-the-salaried.htm)
From India, Coimbatore
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19If you are a salaried professional, don't expect the New Year to be a 'great', or even a 'good' year. For those of us who are already employed, here is what we can expect in 2009. Most of your companies are likely to tighten the screws on performance. This may mean longer work hours, work which is not up to your choice, lower tolerance towards non/weak performance. With organizations cutting down on their expansion plans, or faced with lower business growth, forget about the promotion you were expecting. More and more organizations will adopt the Jack Welch model of purging the bottom 10 per cent (asking the bottom performers to go). In some sectors, such as retail, realty, textiles, and apparel, this figure may be higher. Don't be surprised if you are transferred suddenly to a department/location, which is not of your choice. Companies are likely to have a conservative approach on the percent increments, and some sectors could see single-digit increments. Employees in the top quartile of performers in their organization may earn similar increases to previous years. However, the rest may see a drop in percent increments. We are likely to see a few cases of 'increment holidays' and isolated instances of pay reductions. Variable bonuses will be subdued, but I reckon that sales employees may see stronger incentive schemes since organizations will try hard to shore up their revenues. The silver lining in all this is that with organizations going slow on external hiring, they will look for internal candidates. The external job market will also contract, but that does not mean there will be no job opportunities. Job opportunities will be largely fueled by employee attrition/turnover. The demand for freshers will see an acute drop. The practice of fat signing-on bonuses is likely to be suspended. Largely, it is going to be a clear case of higher supply and lower demand. The only exception in the external job market is going to be for the 'star performers'. Here are some pointers for those of us who will get impacted by the above scenario:
- The first priority should be to secure your job and ensure that your name does not figure in the list of outplaced employees. Pull up your socks and ensure that you do not belong to the bottom quartile of performers.
- Be patient. Do not get upset at the lower increment, or delayed promotion.
- Be extra cautious while taking a decision to change jobs. Unless the reason is compelling, you are possibly better off staying in your current organization. If you do choose to make a change, negotiate hard with your new employer for a good hike and, if possible, a 'parachute mechanism' in case you are a victim of a layoff in the first year of your joining. This means you must be given 3-6 months compensation in case you are laid off.
- If you are in one of the highly volatile industries (retail, realty, finance, or banking) and if you feel that your organization is showing signs of vulnerability, proactively scan the external job market.
- If you get an opportunity with a more reliable and stable brand, make the shift (even at the same salary). Look for signs of distress in your organization (delayed salaries, vendors not being paid, senior managers leaving).
- In your existing organization, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try and be in the good books of your boss without compromising your conscience.
- Salaried professionals have to wake up to the reality of what a downturn really means and 2009 is going to showcase enough of it. So far the situation is not as severe as to drop the 'oxygen masks', but yes, the 'seat belt' sign has been switched on.
Brace yourself for some turbulent times in 2009 and let's hope we have a smooth landing as we come out of the downturn in 2010. The author is the chief value creator at Valulead Consulting, a leadership development & executive coaching firm.
[2009 may not be good for the salaried class](http://www.rediff.com/money/2009/jan/05-new-year-may-not-be-good-for-the-salaried.htm)
From India, Coimbatore
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Hi Shabbir,
The article is really good and sent at the right time to alert all. :) I am working in a small-sized IT company. In fact, I can see some distress signals like delayed salary and senior management members leaving this month only. But I am not sure 🤔 whether to correlate it with the recession time. Moreover, I have been a consistent performer and have always been appreciated for the value I bring to the organization.
On a personal level, I do have some plans to relocate to Mumbai and am receiving some good offers from big brands. What do you suggest? Will this be a good time to make a move or hang on until the next increment cycle in our case in June '09?
Awaiting your advice on the same.
Thanks and Regards,
Prachi
From India, Mumbai
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The article is really good and sent at the right time to alert all. :) I am working in a small-sized IT company. In fact, I can see some distress signals like delayed salary and senior management members leaving this month only. But I am not sure 🤔 whether to correlate it with the recession time. Moreover, I have been a consistent performer and have always been appreciated for the value I bring to the organization.
On a personal level, I do have some plans to relocate to Mumbai and am receiving some good offers from big brands. What do you suggest? Will this be a good time to make a move or hang on until the next increment cycle in our case in June '09?
Awaiting your advice on the same.
Thanks and Regards,
Prachi
From India, Mumbai
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Dear All,
The article is very much true. However, in this scenario of recession, even the good performers are not saved. When it comes to cost reduction, companies first start downsizing. So, the strategy should be to stick to your job, walk the extra mile, and not change your job for an increment or hike. When companies start downsizing, the first target is the probationers. So, if you change jobs in this condition, unless asked to do so, you are in danger.
The crux is to be content with what you have, do your hard work, and keep your options open in case you are the next target who is being shown the exit path.
Regards,
Jyoti
From India, Delhi
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The article is very much true. However, in this scenario of recession, even the good performers are not saved. When it comes to cost reduction, companies first start downsizing. So, the strategy should be to stick to your job, walk the extra mile, and not change your job for an increment or hike. When companies start downsizing, the first target is the probationers. So, if you change jobs in this condition, unless asked to do so, you are in danger.
The crux is to be content with what you have, do your hard work, and keep your options open in case you are the next target who is being shown the exit path.
Regards,
Jyoti
From India, Delhi
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You think negatively, and half of your battle is already lost. Good performance was always rewarded, and bad ones, no matter recession or no recession, were always relegated to the back seat. It's just that this time things will be done on a harsher note.
Let's get this clear: if you are a consistent, good employee no matter what, the company will retain you and perhaps even increase your salary! So why not take it as a challenge, prove ourselves, and make our company proud of us in these trying times?
From India, Calcutta
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Let's get this clear: if you are a consistent, good employee no matter what, the company will retain you and perhaps even increase your salary! So why not take it as a challenge, prove ourselves, and make our company proud of us in these trying times?
From India, Calcutta
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Sujata Is Right, Dear All Hr Fraiend We Have To Updated Ourself For Upcoming Feature,like Our Army
From India, New Delhi
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From India, New Delhi
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Dear Member, Its really scary message..... but seems 100% true, we should all keep hold on our current job.... B+ve.... Regards Jayana
From India, Ahmadabad
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From India, Ahmadabad
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Thank you for the article. It would be great if you could clarify some points here.
1) Parachute mechanism
In your existing organization, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try to be in the good books of your boss without compromising your conscience. How can this be practiced?
Regards,
Shruti Joshi
CMS HR
From India, Mumbai
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1) Parachute mechanism
In your existing organization, take a lot of initiative and be seen as a solid contributor in your team. If you have time, upgrade your skills. Try to be in the good books of your boss without compromising your conscience. How can this be practiced?
Regards,
Shruti Joshi
CMS HR
From India, Mumbai
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