GLOBAL MELTDOWN MANAGING WORKFORCE DURING RECESSION

GROWING MARKET ECONOMY Starting Point = Willingness to buy

DECLINING MARKET ECONOMY

Auto Retail Logistics Hospitality Pharmaceuticals Oil and Gas FMCG Media Mildly impactedMost impactedLeast impacted MOST AFFECTED AREAS Banks Financial services Real estate I.T.

MOST AFFECTED HR PROCESSES Recruitment Training Compensation and Benefits HR Front Office

EFFECT ON EMPLOYEES Low Morale Low Loyalty Increased Stress Levels Grapevine Job Insecurity

KEY HR STRATEGIES Optimize Manpower Strength Incorporate Job Rotation Work on Compensation and Benefits Redesign Training and Development Programs Be Proactive, not Reactive

Have a clear Leadership Strategy Adopt Flexible Scheduling Communication to be Transparent and Fair Streamline Job Descriptions Ensure Retention of Key Employees KEY HR STRATEGIES

Cancel Consider Cancel Continue COST IMPACT HR PRIORITIES

APPLICATION OF KAIZEN PRINCIPLE

RECESSION AN OPPORTUNITY IN DISGUISE As a Strategic Partner For Building Future To Act as a Moral Guardian

ITS TIME TO… Consolidate and Invest Enhance Skills and Improve Performance Implement Changes Leverage Simultaneously ‘Winning The Princess’ and ‘Slaying The Dragon’ Strategies

EXPECTED VOLUMES OF LAY-OFFS ASIA PACIFIC AND THE US Source - Hewilitt Survey

MEASURES TO CUT COSTS Reducing Hours Worked Per Week Offering Flexible Scheduling Eliminating or Reducing Executive-level Bonuses Effecting Percentage Reductions in Pay Freezing Hiring Freezing Salaries

Substituting Telecommuting for Working at the Office Auditing Office Supply Expenses Eliminating unnecessary expenses on Traveling and Meetings Eliminating or scaling back Corporate Parties, Luncheons and Events. Offering Employees Unpaid Vacations/Imposing Mandatory Holidays MEASURES TO CUT COSTS

CORPORATE INPUTS

JET AIRWAYS Bonuses are significantly frozen Slashed salaries:  Top key executives - 25%  Pilots, Engineers - 20%  Chief executive and operational heads - 25 % Allowances frozen for trainee pilots, though the pilots who come below Rs.75,000 per month salary bracket have been left out. financialexpress.com

TCS:  Promotions are on hold  Contractual employees in HR team  No increase in wages until 2010  Introduction of Cost Management Programs SATYAM:  Issue of appointment letter and confirmation kept on hold for this year  Replacing high cost HR to low cost HR thehindu.com

L&T InfoTech :  Postponing training program  Postponing campus placement RAMCO SYSTEMS:  Cutting salaries of senior employees by %  Laid off 200 employees in May 2008 siliconindia.com

ICICI SUBSIDIARY, DLF AND UNITECH:  Cut HR staff and stalled recruitment CADBURY  Cadbury has ruled out slashing its training budgets in response to the global economic crisis Source - IMC Learning

COMPANIES STILL HIRING Bharati AXA Life plans to add another 4000 employees by end of In the Private Security Sector, the expected additional requirement in the next two years is about 2,00,000. TCS has made 25,000 technical campus offers for , a 13% increase over its intake of 22,000 Its closest rival, Infosys Technologies, will be making around 20,000 offers in the same period, an 18% increase. business.outlookindia.com

“No matter how big the problem is, no problem is insurmountable” -Dr Robert H Schuller's,Tough Time's Never Last, But Tough People Do.