Firing and Hiring at Lower CTC

Hi All,

Business need to survive all ups & downs. So at times business has to take harsh decision which might not be welcomed by the employees. However one should not forget that its the business which had provided job to that person. If the business collapses so will the remaining thousands of jobs will too. One should be practical enough to think of the business as well. Like what Air Inida employees had done. They had given their one months salary to fight the fund problem faced by AI. HR can look for optional methods to come out of such situations. Laying off the employee is not a solution but will the employee be willing to work at the lower salary if given an option. If yes the he should be retained as both the objectives are met, firstly that of cost cutting & secondly that of retaining the employee thereby maintaining employee loyalty. However to actually retain employee loyalty & to avoid distress & pressure among other employees, business should ensure those persons that their salaries & their performance will be reviewed & will be increased as & when the scenario becomes positive. Anyways HR would have done that with the new employee they would have hired in the name of PMS.

Regards,

All

This is a question which has probbaly two sides as per my understanding. First is the employer's view and the other is Employee view. Will try to cover both here............

From Employer's view, its not a matter of a job or two, its the business and bottom line (Revenues) that matters. He/She is into business, where emotions etc. find no place and the complete game is decided by the numbers. If they feel that somebody is been paid a higher remuneration for a job where the same could be done in a much reasonable cost, then it makes business sense that they will opt to replace. This is because of a reason to keep the organisation cost under control as we don't see much of the new revenue additions happening in these days. To keep it simple, he is running a business and he needs somebody to do a job and he will definitely opt for somebody who demands less. So from employer's stand point it absolutely makes sense to replace the higher cost resource by a reasonable resource.

From an Employee perspective Yes we feel dejected, de-meaned and demoralised when we are shown the way outside the organisation and that too when the position is been passed on to a new hire due to cost reasons. But we must not forget that its the same organisation which has supoorted you for the last several months or years. If it has gone weak then we must be prepared for part-offs.

I would not like to park it under bad practice because its Business, if business is there jobs are there, If there is no business then practically you dont need anybody for a job.

I would like to quote a very practical line here:"Always love your job, never fall in love with your organisation, because you never know when your organisation stops loving you"

Taking into consideration the current senario, I think its fair for an organisation to layoff high CTC employee and hiring an employee with lower CTC. These are one of the necessary steps that an organisation have to take to survive.

If they won't take such steps to survive, think what will happen if the organisation is closed