The world is facing the brunt of the collapse of American economy. Professionals feel that the cascading effect is fuelling the recession in India and its impact is very depressing. The prices of oil have almost become one-third which means that the Middle East will soon face financial crisis. It is like a deck of cards collapsing. The fear is more than the actual impact.
The slag is due to Europe and US economies. In the US, big companies are bankrupt and do not have liquidity. They have withdrawn their investments in India due to insufficient funds.
Recession has hit almost every sector. Except for FMCG, almost all industries have been affected. FMCG is not immediately affected because it manufacturers products of daily need. For example, because its recession you cannot avoid brushing your teeth or taking bath. The immediate impact is seen on financial services, BPO, HR out-sourcing companies, consultancies, retail and PR. Industries dependent on US markets like export, service and airline are affected the most.
In this sensitive time, employees are facing a lot of uncertainty. In companies affected by recession, people fear losing their jobs. And stable companies, people who are indirectly employed are being asked to leave.
Position, salary, scope of work may not matter; but people are trying to ensure that they will be on the job six months down the line. In the current scenario, organizations are loading employees with additional responsibility and are cutting costs. At the receiving end, people are succumbing to pressures of this notional crisis.
The need of the hour is to be better than the best in your jobs. If you are employed in the affected industries, remember to go beyond the call of duty and contribute more. Look for unexplored avenues. Its time for performance and just being sincere, honest, loyal will not help.
You should become more resource conscious, utilize business assets appropriately and come up with suggestions to curb this difficult period. To save one’s own jobs, employees require to multi-task, find ways to cut costs and contribute more. Employed staff must take this situation as a challenge and learn to sustain in trying periods. Do not get into any conflict with management/colleagues. Ensure that your presence is noticed.
To combat the recession period, many employers have taken some employee related measures. Speaking of favorable measures from the employees’ point of view, the most striking measure is the salary/entitlement cut so that others are not removed. This way the spending per employee is reduced so that within the same expense more employees can be accommodated. Another is asking employees to go on leave. So you do not save on salary but you save on over-heads. The third is making the employee a consultant with the company-Use his/her services as and when required.
Recession slows down job openings. For the few vacant positions available, employees should multitask to optimize the overall output. The chances of getting new jobs within the same industry are less. Some candidates who become realistic and pick-up jobs at lesser salary after all it’s better to have some job instead of no job. Those candidates who become finicky about their salary are affected the most, as they do not get jobs at the same salary.
Seeking new jobs means preparing oneself for multitasking in salaries lesser than usual. Indeed in difficult times, jobs pay less and demands on quality and performance are greater.
Fresh graduates are affected the most as experienced people are available at ‘affordable salaries’. There are many management graduates going to placement agencies and willing to work at lower salaries. Remaining unemployed is more expensive than remaining underpaid, says an employee.
Earlier employable staff was hard to find, causing positions to be occupied by lesser talented/experienced people. Currently, no industry is growing, and entry level job seekers will definitely be affected. They should try for higher education or upgrade their skills.
To tide over the financial crisis, many companies are laying-off employees or reducing pay packages. Indirect employees employed through HR out sourcing companies when removed do not reflect in the employee head-count. So technically speaking nobody was laid-off.