The current market scenario calls for desperate measures to minimize the damage if another recession is in play. For this reason, preparing for the possibility of another recession is essential. The best way for damage control requires one to put in measures to minimize the hopelessness and make difficult business decisions. And what better way is there then to seek Counsel that can be implemented.

Having said that we @SourcingAdda constantly strive to showcase the best practices followed in the Recruitment industry and thanks to the member’s participation we are able to do so. Therefore the WhatsApp group discussion was on, “Perspectives on Layoffs happening in the IT market on 2 parameters namely,

1. Will we experience another recession?
2. If yes, what needs to be done to minimize the damage?”

As suggested by the Pune group member Vineeth. So be sure to review the conversation and view the key take away pointers which we’ll be highlighting thereafter. So here goes…

The informative discussion concludes here with a lot of inputs to take back and possible solutions to minimize the damage control which can be implemented. Now, don’t you think to have a discussion was worth your while? If yes, then you need to retain what you’ve learned hence, let’s look at the key take away pointers to reinforce what you’ve learned, so here goes…

Reasons for Layoffs

• According to the Industry body ASSOCHAM warning, the Indian IT firms may be forced to displace the workforce amid the US tightening H-1B visa norms and rising rupees leading to lower software exports.
• After the US tightened the visa norms, later Australia announced the scrapping of 457 visas used largely by Indian IT professionals.
• According to research, it was found that if there are layoffs in a large scale industry it is due to hiring done on a mass level for future project prospects and when firms don’t have any choice but to cut costs they lay off the bench employee’s during the performance appraisal.
• Based on how the markets are there is a high possibility of India being the main service provider country in the world with the best human resource availability resulting in the European countries smoothing out the visa process.
• Most of the companies are opting to fire non-performing employees’ or they are reducing the bench Employees.
• The market shows it as downsizing which is a regular practice
• Solutions to minimizing the damage

Employer and Recruiter perspectives

• In the meantime here are some processes that you can implement for damage control mentioned below:

Employer Perspective

1. Hiring freeze
2. Mandatory vacation
3. Reduced workweek
4. Cut in overtime pay
5. Salary Reduction
6. Temporary facility shutdown
7. Soliciting cost-reduction ideas from employees
8. Offer unpaid vacation time
9. Offer early retirement
10. Layoff alternatives

Recruiter Perspective

1. Hire Properly
2. Create a contingency plan
3. Negotiate pay
4. Lower benefits
5. Offer part-time work
6. Help employer’s reduce costs
7. Increase revenues or come up with better products or services or modify your selling strategy for products or services.
8. Try and think about the company’s situation in a similar manner as your Employer

Employee perspective

• As an Employee, you need to make sure your work is recognized and appreciated by your supervisors and colleagues.
• When there are layoff rumors avoid becoming invisible but rather the exact opposite such as sending out periodic progress reports and updates if any.
• Make sure you are absolutely clear about what your responsibilities are and be sure that you meet them.
• Take on additional work that was part of a former employee’s responsibilities which may involve handling tasks you’re overqualified to perform or that you don’t like.
• Avoid expressing dismay as it can put your employment at risk if there are more layoffs
• Display a positive attitude as you will benefit in the long run as employers remember those who helped them out through tough times.
• If layoffs are rampant at your company, consider offering to take a temporary salary reduction
• If not then be sure to begin hunting for a new position

There you have it, possible solutions to assist you in minimizing and controlling the damage which can be implemented. So now you know what to do if you hear of impending layoffs. If you’ve read so far then you can be certain that you’ve got the answer to the questions you had prior to reviewing these key take away pointers.

Having said that we’re certain that you’d like to be more of an active learner rather than a Passive one. Hence, here are a couple of tips to help you become an active learner.

1. Follow us @SourcingAdda to get real-time updates to our upcoming activities and events especially, our annual event #TASCON17 Pune
2. a) Leave your views or requests to join the WhatsApp groups in the comments section below

OR

      b) Send us a DM to @SourcingAdda with your Name and Contact details

And one of our representatives will get back to you. In the meantime know that you’re prepared for an impending layoff if it occurs and therefore you’d be able to minimize the damage a recession can cause with the measures at your disposal.