Build your professional network on facebook via our app Go to app
 
<< Prev  31 of 32 in Topic  Next >>
Topic : Hiring Practices
  Rate : 
Associated with other topics :
  Rate : 
 
Created by : Vishal Nagda, HR Executive, Organization Transformation  | 02 14 2009 04:17:01 +0000
Industry : IT ServicesFunctional Area : Talent Management(People Management)
Activity:  294 views;  last activity : 08 19 2010 08:13:35 +0000

Many IT Companies are laying off employees stating recession as the reason. They are then also hiring for same job profile offering lower designation and reduced salary band. Is this a good practice ?

 
 Refer 69
Share
 
 
  Rate : 
 
 
Yes Vs No
6
 
 
 
 
6
4
2
Support   Support
Top Argument
2
0

Due to recession, and just to survive this recession, organizations are taking various steps just to survive, they are removing most of the managerial jobs, in which they were paying them huge money, so those sort of jobs are in the firing line, and at the same time they are hiring others for that job or they are not hiring at all, but they are cutting down on the cost or reducing it to half for that matter. This thing has its own gains and losses. But yes to survive this is one such approach they are taking.


By Vinay Kumar Sahu, HR Manager, Hewlett-Packard  02 23 2009 10:46:08 +0000
 
Top Argument
2
0

It would badly effect the morale of other existing employees once they come to know about this. Thus affecting overall delivery of service.


By Vishal Nagda, HR Executive, Organization Transformation  02 14 2009 04:17:01 +0000
1
0

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,


By Kalpesh Kailash Sharma, Regional Manager, TCBIL  | 07 22 2009 06:45:18 +0000
1
0

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"

 


By Vikas Malhotra, Resource Management, Manpower Planning , Birlasoft Limited  | 04 25 2009 18:14:42 +0000
0
0

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


By Muthu Duraisamy, HR Manager, iGate Global  | 02 24 2009 11:30:39 +0000
0
0

Yes i completely agree with vishal here this trend of Firing and hiring at lower CTC will definitely play on the minds of Employees, and it totally reduces the productivity as there will too much of stress at the workplace, where they are thinking they might be the next in the line. But then this is what recession is making organizations to take such drastic steps.


By Amitava Sinha, HR Manager, Adobe Systems  | 02 23 2009 10:49:46 +0000
Leading Recruitment firm
  • Create a confidential Career Profile and Resume/C.V. online
  • Get advice for planning their career and for marketing of experience and skills
  • Maximize awareness of and access to the best career opportunities
Viewers also viewed
Is appearence the most important thing when you are hiring somebody, are we today giving more...
 
1296 referals 70 arguments, 694 views
Former Citigroup banker, Debrahlee Lorenzana , who was fired because she was 'too hot', and then...
 
755 referals 8 votes, 410 views
                                 WIPRO is planning to re-hire some of the employees it laid off...
 
176 referals 20 arguments, 1133 views
more...  
Recent Knowledge (74)
YES vs NO
 
1860 referals 48 arguments, 470 views
LIKE TO HAVE OPINION OF FINANCIAL EXPERTS ITS EFFECT IN INDIAN ECONOMY IF ENTIRE BLACK MONEY...
 
716 referals 16 arguments, 274 views
men vs women
 
1067 referals 11 arguments, 95 views
more...  
More From Author
Please share some sites which you have bookmarked to your favourites and refer to time and again in case you need to dig out any HR related inputs. Please use this format: Site Name: Site URL: Site USP: Membership:
Buying a software can be costly and could involve a lot of customizations. Using it on SaaS platform could be cost effective + it could have industry standard processes already inbuilt thus helping a SMB to come up to industry level
Great points for selfmotivation. To motivate your team, I suggest below points: 1. Understanding what motivates each team member 2. Appreciation during team meets 3. Developmental Feedback only in one-on-one meets 4. Rewarding exceptional performances...
more...