How Are Companies Navigating Pay Cuts and Hiring Freezes During the Financial Crunch?

Dear All,

I have a query related to the present scenario. Due to this financial crunch, many companies have opted for pay cuts, retrenchment, and stopped hiring employees from outside. What other strategies are companies adopting to fight this crisis? The same with marketing.

Shipra

In Marketing, the managers are adopting certain strategies like reducing the cost of production, selling products at reasonable prices with a high service motive, efficient use of resources, ensuring raw material supply, and many others.

On the other hand, in HR, they are focusing on making efficient use of Human Capital, implementing retrenchment, laying off employees, completing projects within deadlines, and increasing working hours, etc.

They can reduce the salary of the top management and retain some employees with this money. They can also reduce the salaries of employees and retain others without the need for retrenchment.

Hi Anil,

I want to know why an employee should stay when their salary is cut and that part is given to someone else. None of the employees would accept this. This policy is, in a way, encouraging quitting the job on the part of employees, thereby increasing the attrition rate.

If the company cuts the salary of all employees in a certain department, then it would not raise much resentment and would be justifiable on their part as well.

Long working hours make some sense.

Dear deeps.m,

Can you help me with how to create an HR philosophy for an organization?

Dear Deep,

Do you mean the establishment of an HR department? Let me know, as I have some materials on this subject.