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Dear All,

According to a recent study by, while most organisations admitted that they had downsized their employee strength by less than 5 per cent, in the past 12 months, over 60 per cent of these organisations also added that they would not be repeating this exercise in the near future. While, it is a fact that no organisation would like to lay-off its employees, there are some circumstances under which this has to be done. For 38 per cent of employers, who anticipate down scaling of workforce in the coming 12 months, the reasons are varied.

Sectoral differences…

For redundancy:

Over 85 per cent of the surveyed organisations in the IT/Telecom and project/infrastructure sector cited the need to reduce cost due to the current economic slowdown,as the key reason to execute redundancy. For close to 90 per cent organisations in the BPO/ITeS and manufacturing sector restructuring of existing business, has been the biggest reason for downsizing their workforce.

How employees are selected for redundancy:

Overall, job performance/efficiency was cited as the key criterion by 58 per cent of the organisations to select employees for redundancy. Close to 70 per cent of the organisations in the IT/Telecom sector, take into account job performance/efficiency while selecting employees for redundancy. Length of service decides the group of employees that need to be made redundant in the BPO/ITeS sector.

Level-based degree of redundancy:

While almost all key industries said that redundancy was maximum at mid-level, the percentage was highest for participating organisation in the IT/Telecom and BFSI sector (approximately 90%). Representative organisations from the manufacturing and industrial sector revealed that almost an equal proportion of employees have been laid-off from their mid-level and senior level positions.

Gearing up…

Experts suggest that there are a few warning signs that organisations must look out for to prepare for an impending redundancy phase. It includes, overall economic turmoil, change in top management, mergers and acquisitions, competition facing redundancy and other such indications. They recommend that organisations should act swiftly and aptly as soon as they sense redundancy. While nothing can be done to avoid it completely, one can have strategies to pacify the situation and control the degree of damage.

Lending help…

It should be an organisations prerogative to offer assistance to those employees who have been made redundant, believe industry experts. Though, any sort of help will not be able to compensate for the job loss, it does make a huge difference to the attitude and outlook of the redundant employee. Still, offering support to redundant employees is at a nascent stage in India. According to the survey, while 35 per cent of the surveyed employers said they do not offer any kind of support to the laid-off employees, 29 per cent said they do it by way of offering redundancy payoffs in excess of statutory minimum. Another 26 per cent stated they put forward their support to redundant employees by way of offering counseling

Please see the full report attached

Courtesy: Timesjobs

From India, Thiruvananthapuram

Attached Files
File Type: pdf TJNewsletterSep2013.pdf (1.45 MB, 22 views)

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