We’ve heard a lot of talk about the Recession and some of us may have been in the center of one in the past or are in one and have to deal with the layoffs.  Then you are certainly looking for ways to minimize the layoffs else are looking for solutions. Nevertheless with that being said, here’s something to think about. So have you focused on the recession and its effects on Employees and India on a global level?  If you haven’t then you’re in time thanks to our Delhi Group member Raveena. She suggested that we have a discussion on, “Views about the recession and its effects on Employees and India on a Global level”.

How amazing is that we @SourcingADDA decided to cover exactly that. If you’re curious to find out what we’ve discussed then you’re in the right place as we’ll be disclosing the conversation shortly. Thereafter we’ll be highlighting the key take away pointers, showcasing possible solutions or ways to minimize the layoffs, so be sure to review them. So here goes…

So if you’re in the center of one or have to deal with one then you’ve come to the right place as we’ll be providing possible solutions and ways to minimize the layoffs. So here goes…

What is a Recession?

• The National Bureau of Economic Research cites a recession as “a significant decline in economic activity spread across the economy, lasting more than a few months” as the hallmark of a recession.
• Recession, the term itself is quite scary even though it started it is still unacceptable globally

The Scenario

• At present in context with the IT sector, we can’t term that recession is prevalent in India
• There is a shift in operational activities and offshore – economic activities have not declined
• The HR employed in the IT sector in India will be laid off but this was expected & predicted
• The problem with companies nowadays is that they face the recession boldly but bouncing back becomes a challenge.
• The media creates hype besides this is not the first time that layoffs have been taking place
• It happens every year and IT companies are most affected as they just hire people without proper forecasting.
• They keep them on the bench but when the companies don’t get projects then they start laying-off which creates a bad impression in the market.
• AI (Artificial Intelligence) will take over completely hence we have to be prepared and acquire new skills to compete in the market.
• There is a high chance for the market to improve so the chances for one being jobless is less
• It’s a wave that we need to get used to minimize the effects it has on employees which is very horrifying creating panic and insecurity.
• Situational Meaning: The country’s Talent has followed and learned technology but with a herd mentality.
• In a saturated skill-set market, just placing a lower bid for getting a competitor’s morsel, itself was an indication of this scenario.
• WORST: lack of sense of responsibility towards upgrading the existing resources (employees) to forecasted / future needs; thus, experts/analysts termed a few of the services of the organization as body-shops.
• It’s a nasty race to impress the investors with big profit percentages and YOY earning figures which lack the focus on investment…
  • In continuous skill-set up gradation
  • Innovation
  • Adaptations
• The no. of Jobless individuals is increasing even though the industry is growing upwards due to automation and technology and we’re experiencing a downfall in Human Resources.
• It started majorly with Trump’s eye on visa program and changes required in it leading to Australia following it as well.

Possible Solutions

• The focus will now be back on operational efficiency, automation & skill enhancement
• The discussion will also lead us to a rethink on salary & compensation-related HR policies
• There are enormous opportunities in developing countries but for that, we need to create a demand for IT applicants and make people tech-savvy.
• People from any stream should not stick to their current skill-sets instead they should develop new skills-sets and focus on profile enhancement.
• People should adapt…
  • Cross-training
  • Be relevant
  • Constant up-skilling
  • Have a disciplined life
  • Maintain a buffer for any eventualities
  • Engage in such activities to survive any recession
  • If fired move on without burning any bridges
  • Follow the thumb rule., “what goes up has to come down” unless there is a connected shift to stay up throughout which is irrelevant.
• Being a service-based and outsourcing-dependant sectorial economy, the cut-off points around certain skillsets should be forecasted and implemented while responsibly upgrading towards newer standards and technologies
• Sense of being a chooser and not a beggar is to be inculcated at the top level

Degree of the Effects of a Recession on all types of Businesses

• Some businesses may be affected only moderately or not at all; if the recession is mild and brief
• Small businesses are hit the hardest while some industries are affected more than the others
• Luxury services suffer first as both business and private customers cut back on spending
• Small businesses show remarkable flexibility and find creative ways to survive a downturn
• It has vastly impacted Indian employees both directly and indirectly as Indians are present in huge nos. everywhere by choice or chance.

Reasons for Layoffs

• The current layoffs and job cuts in the IT sector can affect Individuals, given the pink slips or even profiles that act as support functions related to the industry and across all levels of the value chain.
• People may lose jobs due to…
• Automation
• Business Alignment
• Acquisition

Possible effects:

1. Reduce cash flow
2. Demand loss
3. Staffing reductions
4. Marketing Constrains

Contributing Factors

1. Budget constraints
2. Reduced spending power
3. Inadequate preparedness for a recession making it impossible for a small business to survive
4. Without adequate support, business is unable to continue operating

Well, this brings us to an end of another worthwhile discussion that certainly showcased plenty of keys take away pointers to bear in mind especially if we’re trying to cope effectively in a recession. So if you’re looking for answers on how to curb a recession then you’ve got what you’re looking for.

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