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Type: HR, Report if not a HR topic
I'm sorry Tulsi but I must completely disagree with you.
At times of economic crisis it is most important that companies have the best people in the places where they can do the most good to survive. Without the right rewards package in place the talent a company depends on for its survival leaks away. Intelligent experienced employees are more important than ever.
Studies have shown that 80% of the productive work in a company is usually done by 20% of the work force, the rest do maintenance or support work. If a company should loose that productive 20% in the current climate it will die. Always remember talent always commands a premium but that goes up in a crisis not down. To extend my ship metaphor, they are the ones fixing things while everyone else bails - neither is indispensable but without the talent you are just putting off the inevitable.
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In crisis what drives compensation structure/employee strength rationalisation
Type: HR, Report if not a HR topic
Posted 04-02-2009Reply
Dear All,
Can i have valauable insights from all our great HRs on what drives compensation structure/employee strength rationalisation during the time of this crisis?
I mean, in times of crisis what are the drivers of HR decisions with regards to compensation and employee strength. In other words how do you tackle situations for salary cut and lay off?
The drivers for staff rationalisation in times of Economic Crisis (which is what I assume you are referring to - there can be other forms of business crisis) are economic, usually induced from an inability by those in charge to see or believe in the coming crisis. In the case of the current situation some pundits/consultants/government advisers were flagging the coming problems as long ago as 2 years. Pro-active management would have prepared "the ship" for the storm ahead, reactive management cut in haste and repent at leisure (assuming the company survives).
Now is the time for significant reviews of the core functions and strategic needs of companies. Integral to this MUST be H.R. when recovery comes (my current guess is 2011/12) companies need to have the right people in the right place with the right rewards packages to make the best of it. That needs planning NOW!
Now is the time for significant reviews of the core functions and strategic needs of companies. Integral to this MUST be H.R. when recovery comes (my current guess is 2011/12) companies need to have the right people in the right place with the right rewards packages to make the best of it. That needs planning NOW!
In a time of crisis people cannot demand so there is no question of salary negotiation or rather we ... See Tulsi's complete reply
I'm sorry Tulsi but I must completely disagree with you.
At times of economic crisis it is most important that companies have the best people in the places where they can do the most good to survive. Without the right rewards package in place the talent a company depends on for its survival leaks away. Intelligent experienced employees are more important than ever.
Studies have shown that 80% of the productive work in a company is usually done by 20% of the work force, the rest do maintenance or support work. If a company should loose that productive 20% in the current climate it will die. Always remember talent always commands a premium but that goes up in a crisis not down. To extend my ship metaphor, they are the ones fixing things while everyone else bails - neither is indispensable but without the talent you are just putting off the inevitable.
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