While talking about the industrial growth that sectors like manufacturing, retail, construction etc will see a considerable growth as these industries will be the fore runners driving economic growth. The domestic market will gain strength and there will be a shift in focus to core sectors like power, construction, manufacturing and retail. Growth will be strong in the government and industrial sectors too, wherein they would look to leverage competitive advantage through technology. The education sector is likely to gain momentum as people will retool themselves to adapt to the changes that will result from this crisis. There will be an increased focus on the education sector because of the pressing need to make qualified people more employable. Other than these another sector that will benefit after the slowdown would be media and entertainment as there would be an increase in demand for these products and services in the market eventually.
With the rebirth of these sectors, organizations will also see a change in the way they operate and will reinvent themselves to suit the needs of their employees. Indian companies will move from a capability driven approach to one that is more outcome based and measurable. They will seize this opportunity and remove all wasteful practices that do not add any measurable outcome to their businesses.
As a result of general slowdown, forces creating tight labor markets in technical, sales and services professions will ease down. This will be an opportunity for organizations to focus correctly on recruitment of the right talent by looking at pre-hire assessments and other tools to improve the selectivity of recruiting efforts. This will also be the time when Indian organizations and entrepreneurs will have the opportunity to expand more in terms of value and supply as they will be entering and playing in a more mature field.
This slowdown has not been very favorable for the employees. Though downsizing is taking place at a fierce pace, experts say that by the end of this period employees will not be ignored. Organizations will come up with rampant policies for the jobs. A lot of organizations will be going back to the basics of employee engagement to make them feel more secure and wanted after the slowdown. Provisions like contract jobs, flexible working hours, and work from home arrangements will become popular. Employee stability will start shaping up. Organizations will focus on improving their skill set to sustain themselves in the current market.
Though many feel that the outcome of the slowdown will have positive repercussions the issue of employee compensation will continue to linger in the minds of several employees. Experts are a little unsure as to how salaries will shape up after India comes up of this slowdown. While moving towards an outcome based approach, organizations / employees may also witness a greater shift to performance based pay. Adding to this is companies are likely to become more cost conscious and will look at al possible ways to improve efficiency which we believe will good for the long run competitiveness of India Inc.
Salary increase would be modest as most organizations will take into account inflation and rising input costs in their salary increase budgets for 2009. Most companies will look at reducing their HR budget – by snipping increments, outsourcing work to cut costs and increasing proportion of variable components and performance liked pay in the total compensation package.
In real terms how Indian companies cope up cannot be predicted at this juncture but various parameters indicate a positive trend. We are only optimistic that India Inc can ride on the wave and not sink under it.