One of my friend was making a comment that, "I am buying a motorcycle when many people are getting pink slips.." Jokingly I commented, "It is said that, not spending during a bad economy would worsen the situation, and people should spend, which would make businesses prosper and economy would get better"
But this made me think about the prevalence of the pink-slip fear. I know some of my friends who are afraid of being laid-off and hence they work 24 hours doing almost 2+ person work a day, to make them valuable for the company. But the net effect is everyone does 2 people's work and the management would find that only half the number of people are enough. So they would cut the workforce!!! And most of the people who worked like a donkey to shield themselves from lay-off, would be laid-off...
Moral of the story: Prevention is better than cure, but make sure your prevention measures cannot be multiplied by a negative number.
Showing posts with label layoff. Show all posts
Showing posts with label layoff. Show all posts
30 January 2009
14 February 2008
Money controls People
Ongoing Layoffs in the Indian IT sector shows how money(read dollar value) controls man, as people were found incompetent to control money!
Layoff may be the only option in USA, but is it required in India. In US, average annual pay rise is about 2~3%. So the chances of a person sticking to a company, even when he doesn't get a pay rise is more. But in India average pay rise is around ~30%. So if you do not give a pay hike, dudes leave the company. In such a situation, not giving hike to let those employees resign themselves might save $ for the company as well as give the dude time to get a job! Also attrition is more in India. So stopping the hiring will also work!
My personal opinion(though I was never laid-off, hitherto :)), is that lay-off in India is always a loss for the company. Stop hiring/giving hike should work! I know a company which did lay-off and a year later spent huge huge $$$ to recruit sub-standard people. Total loss :(
I even doubt that using attrition and stopping pay-hike means no job for the HR dept and managers. So they will look useless to the company. But layoffs mean more work for them! No surprise, it is natural for people to decide which favors them.
Layoff may be the only option in USA, but is it required in India. In US, average annual pay rise is about 2~3%. So the chances of a person sticking to a company, even when he doesn't get a pay rise is more. But in India average pay rise is around ~30%. So if you do not give a pay hike, dudes leave the company. In such a situation, not giving hike to let those employees resign themselves might save $ for the company as well as give the dude time to get a job! Also attrition is more in India. So stopping the hiring will also work!
My personal opinion(though I was never laid-off, hitherto :)), is that lay-off in India is always a loss for the company. Stop hiring/giving hike should work! I know a company which did lay-off and a year later spent huge huge $$$ to recruit sub-standard people. Total loss :(
I even doubt that using attrition and stopping pay-hike means no job for the HR dept and managers. So they will look useless to the company. But layoffs mean more work for them! No surprise, it is natural for people to decide which favors them.
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