Today he announced our mass pay cut. How big is the cut? It is yet to be known. As he rightly pointed out in his mail certainly market is not ours... revenue across company is declining…investors want him to act…customers backing off new projects….!!!
For him math is simple. Reduce the cost and hence sustain the recession. How can he reduce the cost??? Reduce the cost by reducing headcount (right sizing) or reducing perks. Looking at the market conditions he chose to reduce employee compensation (including his own salary). As promised he kept muscle of our organization intact. This is a right move from a productivity standpoint. He believes that we are fundamentally sound and when economy picks up we stand strong and take the bigger share from the market place.
What it means to me?
I know this is a tough time. Market correction was very much required. Now I will have to remain focused and continue my contribution at my work. I have to perform efficiently and effectively. I strongly believe my organization strategies and our leader. I am sure he will work it out and help us emerge as a market leader soon. I think this is just the beginning. If the environment gets worse he will have no way out but to end up reducing the work force for the betterment of the organization. To mitigate that risk it is the responsibility of each one of us to help the organization to emerge from this global recession.
3 comments:
this economic downturn has hit all the people in different scale. Its better to have pay cut than losing job. At least one can feel that he reduced the his/her salary and fed people family who were about to be fired.
Question arises if the recession happen again and again is this planned? Is there any flaw in the system how it works?
-Gbhat
There were areas where restructuring should have happened, and with this recession we are observing it. It was the 1st firm to announce "no-hike" in Oct, which is being seen in almost all firms now. I hope the "pay-cut" optimization wont be followed by others :)...
I agree pay cut is much better than sacking people. But still some firms are paying hefty pays to top management and busy in spending millions of bucks in changing the office interiors of newly appointed managers as well!
Post a Comment