Team-BHP > Shifting gears


View Poll Results: As an employee or a boss, what kind of salary cost-cutting are you okay with?
Salary cut 179 30.65%
Unpaid leave / furloughs 97 16.61%
Layoffs 14 2.40%
4-day work weeks 124 21.23%
Lower salary to continue work-from-home 153 26.20%
No bonus for a foreseeable future 319 54.62%
No increments 327 55.99%
Reduction in perks (company cars, allowances etc.) 278 47.60%
Other (please specify in your post) 17 2.91%
Multiple Choice Poll. Voters: 584. You may not vote on this poll

Reply
 
Thread Tools Search this Thread
Old 14th April 2020, 19:11   #61
BHPian
 
Jaguar's Avatar
 
Join Date: May 2006
Location: Bangalore
Posts: 884
Thanked: 952 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by ninjatalli View Post
In my previous firm (a Big 4 consulting firm); I see my partner taking a very smart move; the firm has taken a decision on zero promotions, salary hikes and new hires for this year;



The partner has gone ahead with the promotion/appraisal discussions and the process has gone ahead as usual; and the folks that were expected to be promoted or top ratings have been appraised of the same. The entire team has been told that their roles & responsibilities (in case of promotions) would change accordingly; with the underlying point that the partner would try and push very hard for mid-year promotion cycles as soon as the firm-wide decision is revoked later during the year.
Just thinking aloud, why not go ahead with the promotions, albeit without any hike? I feel, sometimes recognition matters more than money.
Jaguar is offline   (1) Thanks
Old 14th April 2020, 19:51   #62
Senior - BHPian
 
Join Date: Mar 2007
Location: Kolhapur
Posts: 1,583
Thanked: 993 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by Vipin Kumar View Post
These options seem to be based on private firms/business as the axiom. I understand the issues faced by small business but what big is this big business if it cannot manage a two or three months lay off on its own?
Why would you assume it's just going to be 2-3 months?

Morgan Stanley forecasts that on & off Lockdowns may go on well into 2021. And if we go into a recession, many companies, especially those with debt wouldn't be able to make it. If I were running a company, I would start cutting down expenses as much as I could right away.
carboy is online now   (1) Thanks
Old 14th April 2020, 19:58   #63
BHPian
 
Slickshift99's Avatar
 
Join Date: Apr 2019
Location: New Delhi
Posts: 51
Thanked: 186 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Voted for No increments /No bonuses as I personally thought that might be the best option according to a young 20 y/o lad. The pandemic will gradually fade away but its our duty to support and sustain the people in whatever way possible as we all stand together as humanity against the deadly threat.
Slickshift99 is offline  
Old 14th April 2020, 20:00   #64
BHPian
 
haisaikat's Avatar
 
Join Date: Apr 2019
Location: Kolkata
Posts: 575
Thanked: 2,231 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I would volunteer for a proportionate paycut only if company guarantees that it will help them hold the entire workforce without layoffs. It is the test of time where humanity should rise above everything rather than we thinking about just us.

Some customers are heard of reducing service level or number of people serving their projects, had it been my decision if I am unable to place those folks to other billable roles with different customer, I would rather let them work for free for existing customer and stand beside them in these trying times. Knowledge retention is also addressed in that way.
haisaikat is online now   (1) Thanks
Old 14th April 2020, 20:00   #65
BHPian
 
Avenger_123's Avatar
 
Join Date: Jul 2015
Location: Dallas - Texas
Posts: 70
Thanked: 132 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Well, I think the key worry is a complete loss of individual or private demand which will lead the economy to collapse if there is no demand or revenue earned by an organization it will be difficult to pay salaries, which in most companies is a big expense on books. The situation is going to get worse as the year goes on and will touch every nook and cranny of the economy.

The only way is a mixture of both fiscal and monetary policies. The government should kick start major demand generating projects like infrastructure, roads, electrification, give incentives for people to upgrade cars, invest in education, housing, water programs, etc. which should kick start supply and need for businesses. All this needs a massive amount of money and that's where RBI comes in picture to lean forward, buy bonds and increase cash in the system, take loans - literally helicopter money/print more currency. Yes, it will increase inflation and might hit exports but that is the only way to kick start the demand cycle.

This is what the US Fed is doing giving unprecedented stimulus, to sustain demand, and what US congress did with $ 2T stimulus.

Even in India, we need major booster which so far the government has not been willing to do and that's what worries me. We have services contributing major revenues, with so much of western country driven by taxpayer simulations, there will be a lot of pushback on traditional outsourcing, etc. with record unemployment levels in western countries.

That is the reason we need massive demand locally in India, "massive' is key no one has seen anything like this and if not acted will push a lot of current middle class back to poverty !!

Last edited by Avenger_123 : 14th April 2020 at 20:04.
Avenger_123 is offline   (3) Thanks
Old 14th April 2020, 21:45   #66
BHPian
 
indian21r's Avatar
 
Join Date: Mar 2006
Location: Hyderabad
Posts: 895
Thanked: 666 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

We are into Real Estate and have quite close to 20 people working for us directly. Our contractors have 100 people working under them. For now we are going to give the staff their regular Salaries without any pay-cuts. But given that I see business falling down drastically over the next few months, there will be no increments for the coming FY 20-21

Only if the business recovers to > 80% of last year level, I will give their increment as arrears. If it stays less than 50%, I will ask them look around for other options. No firing though. Maybe some of them will have to learn new skills or do new roles in the lean period. I am more worried about giving them meaningful employment.

On the business side, contractors will get their dues as we need to finish the projects under execution and deliver them to our customers. We have entered a couple of new ventures in February/ March which we will continue with some revised terms. But we are expecting very slow sales over the next few months. No new projects will be added for sometime.
indian21r is offline   (2) Thanks
Old 15th April 2020, 01:33   #67
BHPian
 
vinya_jag's Avatar
 
Join Date: Apr 2011
Location: Bengaluru
Posts: 461
Thanked: 408 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

A different thought.
I work for a video conferencing company, and though, last few years were tough, these times have given us a slightly better opportunity. Last few weeks have been tough, everyone working from home, it has been unprecedented surge in usage.
I see this as a directional change for the world, with no return, for some of today's businesses. Work from home will become more of a norm, businesses over video, will be the next buzz word. We are already calculating money and carbon dioxide savings per one less flight taken.
Internet companies are overwhelmed with traffic. Cellular operators are full of video traffic. Netflix and Amazon Prime will be the default way of watching movies. 5g is at our doorstep.
Travel and lifestyle will be the most affected. Airbnb and others will now think differently. Say, wellness tourism. Temple places would never be the same, for a while. Travel will suffer too. Private cars might pick up some steam after lockdown, but will soon be crushed by the environmentalists. Travel, should consider transport and transit, instead.
But, in all this, I see countries coming together, helping each other. Humanity will benefit from this experience
vinya_jag is offline  
Old 15th April 2020, 05:30   #68
Senior - BHPian
 
sandeepmohan's Avatar
 
Join Date: Feb 2010
Location: Wellington
Posts: 2,581
Thanked: 3,108 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I am a Independent Contractor and have taken a pay cut. I am okay with this versus having no work or job on hand. Being in the Visual Effects Industry, it is not like I have the luxury to sit and job hop as it is very niche space, even when things are normal.

What has changed for me? From being able to bill up to 60hr/week, that has dropped to 40hr/week and that is for 90% folk. I have to spread those 40 hrs across 5 days too. Working to 4 days does not work.

The reduction in pay is definitely noticed, further compounded by the fact that there isn't a concept of paid or sick leave when you are an Independent Contractor. On the plus side, I am spending a lot less these days. It has been weeks since I filled gas (Started working from home before the lock down), the only trip I do is to drop my wife at work as she is an Essential Worker so has to go onsite for work, a holiday I was supposed to take did not happen, we are not going to cafe's or restaurants, etc. Aside from grocery and utility bills, I am not spending on anything else so that money is saved. The reduced work hours means I wrap up work by 4pm and go cycling with my son.

Working from home has been going well though I do miss being able to interact in person with colleagues and friends. Also; as much as having a meeting via Teams and various other online conference solutions works, its very different to sitting in a room and discussing matters.

Strange new world we're all living in.

Last edited by sandeepmohan : 15th April 2020 at 05:41.
sandeepmohan is offline   (5) Thanks
Old 15th April 2020, 09:50   #69
BHPian
 
Join Date: Jun 2019
Location: Bangalore
Posts: 102
Thanked: 163 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Being an an employer, certain aspects of my team dynamics have changed. Mine being a small office setup a team of six, the following changes are in place :

1) Two of my project Architects have moved back to Chennai and Hyderabad, their hometowns. They don't intend on coming back as they are worried about the situation. They are also planning on getting married and settling back at home post the ease on the situation. That's basically resignations from their end. I'm still rooting for them, but for timebeing they plan to support on certain projects from home. I will be paying them on a project basis.

2) 60% salary for the others as they are working from home. Only 4 days a week are being followed. At this point, there are no deadlines as work on all our sites have come to a grinding halt. Only projects on the drawing board are being improvised.

3) Reality fact is no bonuses for Diwali, Dusshera and any other auspicious festival. No holidays also for the same.
At most, we may take 1 day for Diwali and Dusshera puja.

4) Scaled down expenditure. No site visits on office expenses. Only I will be visiting sites post the ease on situation.
No team lunches and other recreational activities.
We will switch to potluck dinners and movies at office for recreation.
No buying of electronic devices for the year for office purposes. System upgrades will happen only post a year away as what was planned in the month of September.

5) No college internships accepted for this year. We are sceptical of students coming from other states at the moment considering the dicey situation. We still aren't sure of the situation in the near future and can't hold additional responsibilities.

This is our safe mode plans for the year. Most of my staff will continue to work from home until September as they use the metro for their commute.

Regards

Aditya
advenk999 is offline   (5) Thanks
Old 15th April 2020, 10:22   #70
BHPian
 
ROG_AK's Avatar
 
Join Date: Oct 2017
Location: Bangalore
Posts: 249
Thanked: 1,019 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

While the current situation has affected many industries, it is somewhat of a blessing in disguise for us. The extra free time means people will play more games, and they are! Our DAU has gone up considerably since the lockdown. We are actually having to work harder than before to meet user expectations.

Working from home is the biggest challenge but we are managing, in a manner of speaking. To keep employees motivated we are planning to give them extra perks and bonuses for the best performers.
ROG_AK is offline   (1) Thanks
Old 15th April 2020, 10:50   #71
Senior - BHPian
 
sridhu's Avatar
 
Join Date: Jan 2008
Location: Bangalore
Posts: 1,077
Thanked: 1,883 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by advenk999 View Post
Being an an employer, certain aspects of my team dynamics have changed. Mine being a small office setup a team of six, the following changes are in pla...

3) Reality fact is no bonuses for Diwali, Dusshera and any other auspicious festival. No holidays also for the same.
At most, we may take 1 day for Diwali and Dusshera puja.


Regards

Aditya
Please check on the legality of this, Aditya. AFAIK, you have to give 1.5 days off per month of work and 7 days holidays, of which Gandhi Jayanti, Republic Day & Independence day are compulsory.

See extract: https://paycheck.in/labour-law-india...ays/paid-leave
sridhu is offline   (3) Thanks
Old 15th April 2020, 11:17   #72
BHPian
 
rosh_aveo1.4's Avatar
 
Join Date: Apr 2007
Location: Cochin, Kerala
Posts: 600
Thanked: 405 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Well, ours is a small startup that was growing steadily for the past 2 years. We had to take the call of assistant managers and above to take a 50% cut so that the below grades won't be affected i.e. no cuts for them and no job losses. Happily chose the 50% cut option. And I agree what someone mentioned here i.e. take harsher cuts now so that we can stay afloat. But yeah, I do like the 4 day work but that might not be applicable to all types of business.

Last edited by rosh_aveo1.4 : 15th April 2020 at 11:18.
rosh_aveo1.4 is offline  
Old 15th April 2020, 11:56   #73
BHPian
 
Join Date: Jun 2019
Location: Bangalore
Posts: 102
Thanked: 163 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by sridhu View Post
Please check on the legality of this, Aditya. AFAIK, you have to give 1.5 days off per month of work and 7 days holidays, of which Gandhi Jayanti, Republic Day & Independence day are compulsory.

See extract: https://paycheck.in/labour-law-india...ays/paid-leave
Thank you for the heads up. Yes I will be considering the 1.5 days off per month as well. I forgot to mention this.
Also, public holidays will be considered. Appreciate the response.
Best Regards
advenk999 is offline   (3) Thanks
Old 15th April 2020, 14:31   #74
BHPian
 
Deep Blue's Avatar
 
Join Date: Sep 2009
Location: Udupi
Posts: 676
Thanked: 416 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Looks like some are lucky!

Capgemini India gives salary hike to 70% staff, retains employees on bench

https://www.moneycontrol.com/news/bu...h-5148651.html
Deep Blue is offline   (1) Thanks
Old 15th April 2020, 18:18   #75
BHPian
 
Manoj2268's Avatar
 
Join Date: Jul 2008
Location: Delhi
Posts: 256
Thanked: 206 Times
Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I am not so lucky here. After taking a month off of work, I was to join a new org on April 1 however that has been deferred(and most likely rescinded).

Well, time to float my CV again.
Manoj2268 is offline  
Reply

Most Viewed
Thread Tools Search this Thread
Search this Thread:

Advanced Search

Copyright 2000 - 2021, Team-BHP.com
Proudly powered by E2E Networks