Suggestion on how companies can over-come the effects of recession on compensation.

I guess, the issue in present time, is no longer relevant.

Now, the idea should be on "Capitalizing on the lessons learned from the great Recession".

Let us be forward-looking.
Regards.

Hi,

As far as my concern, “Recession is in our MIND not in the MARKET”;

There is a story about a man who sold hot dogs by the roadside. He was illiterate, so he never read newspapers. He was hard of hearing, so he never listened to the radio. His eyes were weak, so he never watched television. But enthusiastically, he sold lots of hot dogs. His sales and profit went up.

He ordered more meat and got himself a bigger and a better stove. As his business was growing, the son, who had recently graduated from college, joined his father. Then something strange happened. The son asked, "Dad, aren't you aware of the great recession that is coming our way?" The father replied, "No, but tell me about it." The son said, "The international situation is terrible. The domestic is even worse. We should be prepared for the coming bad time.

"The man thought that since his son had been to college, read the papers, and listened to the radio, he ought to know and his advice should not be taken lightly. So the next day, the father cut down his order for the meat and buns, took down the sign and was no longer enthusiastic.

Very soon, fewer and fewer people bothered to stop at his hot dog stand. And his sales started coming down rapidly. The father said to his son, "Son, you were right. We are in the middle of a recession. I am glad you warned me ahead of time."

IF AN ORGANISATION OR AN INDIVIDUAL HAVE THE FOLLOWING VALUES, RECESSION WILL NOT BE A FACT.

1. DELIGHTING THE CUSTOMER
2. PASSION FOR PERFORMANCE: Work with CAN DO Attitude
3. ENERGY FOR RENEWAL: Continous Improvement in the Process
4. WINNING TOGETHER: Sharing Ideas, Work and finally Victory.

Regards,
Jaheer Ismail

Hi All,

Thanks a lot for all your time taken to discuss on this topic.

I am working on a project on "Recession Impacts on Compensation Management". Once its done I will surely upload it on the website. There are different salary survery reports of 2009 which could be of use to many os us. Will surely await your comments on the same.

Its really encouraging me to put some more topics for discussion ahead.

Keep writing!!

Regards
Deepa Deshmukh

Dear Friends,
Plz go trough it ,hope this would add value to this discussion topic.









( Here is a question asked by archishagarg)
Respected Sir
Respected Sir,
It was a pleasure reading your skill set. I am too young and absolutely not potential enough to comment upon it. But 1 thing that I would like to know from you as a matter of knowledge alone that when you yourself support personality tests for matching the right person with the right job which means you are well versed with recruitment don't you think outsourcing it may not be a very profitable deal? I personally feel if you have an efficient HR department it can best understand the company's requirement. I am referring to this as you had mentioned this as a solution on "how companies can over-come the effects of recession on compensation.". I fail to understand this logic.
Rather I feel making effective employee engagement strategies can help to some extent. Please correct me if I am wrong. Since you are well versed with this shall better know the pros and cons of the same.
I will really be obliged if you could guide me on this issue and your post related to it.
I apologize if I am wrong somewhere or if you found me rude anywhere above.
I will really be looking forward to your reply.
Thank you.
Posted Yesterday at 06:48 PM by archishagarg


My Dear friend, (Here is my answer)

I extremely support my statement about outsourcing the recruitment process and my skill set mentioned in above post.I can prove it on practically also.
I request you to go and read it carefully my post about how companies can over-come the effects of recession on compensation." you will find that I have mentione only recruitment process not selection process. For your kind information there is some difference between Recruitment and Selection process. Both recruitment and selection are the two phases of the employment process. The differences between the two are:
1. Recruitment is the process of searching the candidates for employment and stimulating them to apply for jobs in the organisation WHEREAS selection involves the series of steps by which the candidates are screened for choosing the most suitable persons for vacant posts.
2. The basic purpose of recruitments is to create a talent pool of candidates to enable the selection of best candidates for the organisation, by attracting more and more employees to apply in the organisation WHEREAS the basic purpose of selection process is to choose the right candidate to fill the various positions in the organisation.

3. Recruitment is a positive process i.e. encouraging more and more employees to apply WHEREAS selection is a negative process as it involves rejection of the unsuitable candidates.

4. Recruitment is concerned with tapping the sources of human resources WHEREAS selection is concerned with selecting the most suitable candidate through various interviews and tests.

Hence recruitment cost involved when company do recruitment by it self = Cost incurrred for jobportals (Jobsahead, Monster and Naukri)+Cost of Posters and banners+Head hunting+Internal Ref+salary of the employee involving in all these activities+PF,ESI,gratuity,superannuation contribution, on that salary+annual incentive and bonus to these employee+
Training and development cost+ time spent on all these stuff.

Sabsi bari bat to ye ki aapko ye cost tab bhi dena par sakta sai jab tak ki aap best candidate choose nahi kar lete.....

Think, When large companies hire hundred and thousands of employees per year, these costs can take a significant portion of the HR budget and the total operating expenses.

Now on the other hand when you hire through any recruitment agencies-they will manage the recruitment process from start to finish. Recruitment agencies hold large databases of candidates and can advertise on your behalf. Their advertising methods include both print and online mediums although the latter has become more common in recent years.
Advantages----

-Reduces the impact on company resources and time spent on recruitment.
-You can often get a rebate for unsuitable placements within a specific period of time or be provided with another candidate.
-Expertise and knowledge in their specialist field- no training cost.

Now the most important point is
1-Recruitment agencies ko tabhi
payement karte hai jab tak ki hum best candidate chose nahi kar lete.

2- we have to pay only some(10 or 20) percentage of the employee first year annual salary.

Hame pura khazana lutana nahi parta.

Now you tell me which one wil be cost effective either Internal recruitment or through agencies.

NOW ABOUT PERSONALITY TEST---

I have mentioned about use of personality test of selection of right conditate ie for post recruitment means selection process.

One thing I would also like to say Personality test is not only one tools for selection process, it can be used for many purposes such as--

1- Motivation- Once you understand the personality of another person as well as your own it helps you motivate the others in a better way.

2--We able to judge the behaviour style at work, motivation and thinking styles of people.

3- Career counselling, Mentoring, Outplacements, and Training Needs
4- Employee self evaluation and development
5- Learning styles hence use ful in designing training module and method
6- Performance appraisal
7- Team Building
8- its helps in employee engagement and retention activity
9- Management Development
10-Sales development

And know your answer of your third question, in this way we can not only made effective employee engagement stretigies,all other HR practises also.

Hope I am able to clear your doubt. If not feel free to discus.

I am waiting for your reply.

Thanks

SATYAM