Companies may face heat for layoffs, salary cuts
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November 17, 2009
- Author: krish
Companies that sowed the wind with harsh measures such as layoffs and pay cuts during the economic slowdown should be prepared to reap the whirlwind in the form of major difficulties in hiring and retaining staff as growth gets back on track.
Employee churn has picked up significantly in the past three months in several businesses and HR experts said how companies treated staff during the tough times would be a key determinant of attrition levels and the fabric of employer-employee relationships.
Among those left sadder, wiser and bitter because of the experience with an employer during the downturn is a senior official who left a top FMCG company to join a leading retailer on a 50% higher salary. Within nine months, the retail firm scaled down expansion plans and transferred him to a remote location without any warning. Pushed to a corner, he quit and rejoined his former employer.
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Interesting article. This does not come as a surprise to me especially since most companies have not used the period of recession (if there was one ) constructively. It was a good time to focus on PEOPLE..Well I suppose “you reap what you sow “
I agree. I read this article in the Economic times and the first thing that came to mind mind was that , it was no surprise.
I hope someday companies will start managing the inventory of usable talent and not just headcount. When the job space heats up, the challenge is in holding on to the A and B cat employees. Now if that does not pose a problem, companies must feel pleasantly surprised
It is time companies realised the value of taking care of their employees. Some employers took their employees for granted using ‘recession’ as an excuse. Companies which dont believe that people are their biggest asset will face the heat now.