How Are Companies Surviving Economic Instability Without Layoffs? Share Your Insights

Hi Friends,

We are all aware of the financial crisis and economic instability that have affected us on both macro and micro levels. With this in mind, I am writing a paper on how various companies have introduced new or changed existing strategies (apart from laying off people) as a consequence, in order to implement cost-effective ways of surviving.

I kindly request all of you to contribute your views and experiences on this subject. Your support will help me create a fair paper, which I will certainly share with all of you. I look forward to your helpful responses.

Thanks,

Hi Vaishali,

I am working with an IT Organization in Mumbai, and we have implemented a few strategies for the same.

1) We have started with cost-cutting measures, such as reducing stationery usage and avoiding unnecessary use of the AC.
2) We have modified our Late Coming Policy; earlier, three late marks would result in half a day's leave, but now it has changed to two late marks equating to half a day's leave, and more than three late marks in a month will result in deduction of a full day's leave.
3) Apart from this, we have also utilized all employees who were on the bench. We have assigned them to different departments such as testing and database. Employees who are performing below expectations have been transferred to the Support Department.

Thanks & Regards,
Amit Lokhande
HR - MUMBAI

1. You can encourage your employees to take leave if they have more allowable leave with them.

2. You can stop encashing the leave (EL) if you have this procedure in your company.

3. Switch off ACs for 2 hours in the morning and 2 hours in the evening.

4. Switch off the lights when you go off for lunch, a break, etc.

5. Go for energy-saving bulbs if possible.

6. Cut overtime and compensate with Compensatory Off.

7. If you are presently in a rented premises, approach the owner for a discount by reasoning Global Economic Crisis.

To overcome the crisis, financial discipline at the individual level is needed. One has to realize that the income may not be sufficient to meet the actual expenditure, and hence efforts must be taken to reduce the expenditure to the level of income. Not only a reduction in power consumption, phone calls, consumption of petrol, traveling by a lower class (if not inconvenient), having lunch/dinner in standard hotels rather than Star hotels, having video conferencing instead of meetings wherever possible, meetings at HQ or branches and not at hill stations, use of email instead of postage, courier, fax wherever feasible, changing tariff plans on phones, having group connections for team members, avoiding other luxuries for the time being, reduced use of credit cards, thinking twice about the necessity before buying anything, etc., will bring down the expenditure. Once the crisis is over, we can relax and come back to our good old days.

Hi,

1. We have stopped giving salary advances.
2. We discussed with telecom service providers and reduced the monthly rentals.
3. We have increased the extensive usage of video conferencing.
4. We are using smaller cars (like Indica/Santro) for local travel instead of big cars.
5. There will be no overtime.

Thank you.

Dear All,

Hi everybody,

We are all aware of the economic crisis in India. I have proposed the following steps for cost-cutting in my office. I am working as a Manager - HR & Admin in an FMCG company. The following might also be useful for you to implement in your organizations, or you can contribute or add to my points:

1. Sending couriers reduced instead of sending all correspondences by post, based on the urgency of the courier.
2. Only provide tea/coffee for an employee twice a day.
3. Traveling by air has been restricted to Directors & Managers only.
4. Petrol reimbursements have been streamlined.
5. Switch off A/Cs and lights during lunchtime and immediately after office hours.
6. Avoid unnecessary printouts from inkjet printers; use only dot matrix printers.

Regards,
B Saravanan