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

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Old 19th April 2020, 21:03   #91
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Its funny how layoffs are clearly the least preferred option, but if we call up close friends, we hear of layoffs in many many places. Is it the case that everyone wants to be nice but our actions are anything but nice - as a collective economy, that is.
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Old 19th April 2020, 21:09   #92
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I am in a totally different and a sticky situation. Being a dentist and dependent on my clinic income, I am in a totally different reign, on one side have large EMI’s, and on the other end the COVID-19, which shows highest viral load in the oral cavity, have to deal these issues on two fronts. Either have to sustain for few days or jump into the fight with COVID, and risk self and family. In addition people will tend to postpone their dental treatment, due to financial issues and COVID fear. Tough times ahead……
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Old 19th April 2020, 21:45   #93
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I work for one of the top 5 Indian IT Services and we have decided to freeze hike and progression. As long as there is no layoffs, employees will happily support such moves.
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Old 19th April 2020, 22:12   #94
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

A good friend of mine has been laid off last week. He was working for a metals and mining firm in India. He said that other members of his team (digital transformation) are also in the process of getting pink slips. With commodity prices crashing, metals and mining sector is under tremendous pressure. I expect more firms to follow suit.

A few of my friends in well known start ups are also facing an uncertain future. With funding drying up, start ups are facing severe liquidity challenges.

Let us pray that there is no second wave of infections next winter.

Last edited by Sheel : 8th May 2020 at 09:37. Reason: suite = suit.
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Old 8th May 2020, 01:41   #95
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

We as a start-up, our prime objective was not to have any layoffs. COVID had affected us pretty badly as few of our customers straight away asked us to stop the services. Our clients are basically public limited like big companies, so cash flow also has taken a heavy toll.

We being a small enterprise, any hit on revenue would have surely affected the employees. Sensing this situation, we worked on cost-cutting measures from mid-March itself. We had the cost control measures in place at the right time and managed to absorb the without touching the employees. All they had to forego was their annual revisions which they happily did considering the situation.

The other thing I noticed was the give and take approach. Some big companies have asked for discounts on the next few month's billing which we obliged. We also requested discounts from our creditors which many accepted happily.
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Old 8th May 2020, 07:23   #96
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Default As an employee or a boss, what kind of salary cost-cutting are you okay with?

So the salary cuts have now made its way officially to my doorstep! Being in a consumer facing Industry like Apparel Retail, I was expecting this, the only question was when.

Although the Organization I work with is financially well managed and very profitable, zero sales for 2 months and even beyond that is a significant impact. The first cost cutting measure was to utilise all 14 days of earned leaves in this quarter. And the second, but very painful measure is the salary reductions. Its varying anywhere between 10-25% fixed pay reductions for May to Sep payrolls. For me, its 15% and thats a big hit every month. But I anticipated this, and here it is. If things get better than this might be the last cost cutting measure, but if business does not get back on track, I see these salary reductions getting worse.

Last edited by motorworks : 8th May 2020 at 07:25.
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Old 8th May 2020, 10:59   #97
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

We took a salary cut in April itself foreseeing the prolonged lockdown and zero activities. The range of cuts were from 30-10% depending on salary scale, with higher ups taking more cuts. We are trying to avoid major retrenchments and hope we can avoid that unpleasantness.
But frankly, things are still bleak with no foreseeable reversal. Not sure how long we can carry on with this.
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Old 10th May 2020, 23:44   #98
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by motorworks View Post
The first cost cutting measure was to utilise all 14 days of earned leaves in this quarter. .
The cost cutting measures adopted by my employers (a real-estate consultancy) are quite similar to those adopted by yours sir. However while I largely understand the cutbacks there is one question that is lingering on my mind that you can maybe help me with, how is asking employees to exhaust their earned leaves going to help in immediate cost cuts?
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Old 11th May 2020, 07:15   #99
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Default

Quote:
Originally Posted by Laxman9192 View Post
The cost cutting measures adopted by my employers (a real-estate consultancy) are quite similar to those adopted by yours sir. However while I largely understand the cutbacks there is one question that is lingering on my mind that you can maybe help me with, how is asking employees to exhaust their earned leaves going to help in immediate cost cuts?

For sure Its not an immediate cost cutting measure like a salary reduction. All earned leaves are like liabilities of a company, which they will have to pay out to the employee at some point if not utilised. Hence until the leaves are utilised, the respective funds will have to be parked as a liability in the books of the company, more like provisioning. Having employees use them up means that the liability in the books reduces. Well, this is what I could understand.
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Old 11th May 2020, 07:37   #100
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by northstar* View Post
managed to absorb the without touching the employees
Quote:
Originally Posted by motorworks View Post
Its varying anywhere between 10-25% fixed pay reductions
My views are as follows:

It is the moral responsibility of any employer to ensure that employees remain in employment because the current situation is no fault of theirs.

I don't think there is anything wrong in employees taking an even 30-35% hit as long as their employment is protected; one has to learn to live with less, till times get brighter.

Laying off employees should be the last item on an employer's action list.
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Old 11th May 2020, 11:11   #101
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by Laxman9192 View Post
The cost cutting measures adopted by my employers (a real-estate consultancy) are quite similar to those adopted by yours sir. However while I largely understand the cutbacks there is one question that is lingering on my mind that you can maybe help me with, how is asking employees to exhaust their earned leaves going to help in immediate cost cuts?
Utilization factor is a performance metric used by organizations. and it is closely tracked especially when demand is affected. An easy way to improve utilization factor when there is less work is to ask employees to go on leave.

Last edited by PatienceWins : 11th May 2020 at 11:17.
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Old 11th May 2020, 11:28   #102
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by Laxman9192 View Post
The cost cutting measures adopted by my employers (a real-estate consultancy) are quite similar to those adopted by yours sir. However while I largely understand the cutbacks there is one question that is lingering on my mind that you can maybe help me with, how is asking employees to exhaust their earned leaves going to help in immediate cost cuts?
In addition to what others have already explained, another simple explanation could be productivity. Due to lockdown, the productivity of the firms are low (or even NIL). So if you are taking your leaves now, your leaves won't have any impact on the productivity of the firm.

Later, once the production activities resume, you are expected to work without taking any leaves (as you don't have any left!). Only if there's an emergency, you use your sick leave or take leave without pay. This would reduce the notional cost to the firm.

Last edited by ashis89 : 11th May 2020 at 11:30.
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Old 11th May 2020, 11:55   #103
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I have recently lost my job along with a bunch of other colleagues. Thankfully, I am debt free and have no immediate financial commitments. I will be focusing on upgrading my skills and then jumping back into the job search mode.

Cracking a job in this time of crisis will be a big confidence booster! Let's see how things pan out. Best of luck to all TeamBHP members.
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Old 11th May 2020, 12:59   #104
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

Quote:
Originally Posted by vigsom View Post
My views are as follows:

It is the moral responsibility of any employer to ensure that employees remain in employment because the current situation is no fault of theirs.

I don't think there is anything wrong in employees taking an even 30-35% hit as long as their employment is protected; one has to learn to live with less, till times get brighter.

Laying off employees should be the last item on an employer's action list.
Don't be alarmed but I am sure there will be a lot of our colleagues who would say that they are performing better than others hence there should be no pay cut for them compared to someone else who is not performing as well.
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Old 11th May 2020, 13:24   #105
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Default Re: As an employee or a boss, what kind of salary cost-cutting are you okay with?

I am changing my job this month end ! Guess some sectors and some companies are already seeing the effects of less growth and uncertainty.

If it comes to that, I guess having less salary but a employment would be my choice. But some sectors and areas might suffer without being in good position when the upturn comes. So its more to do with employers on what they want and how they want.
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