The economic slowdown and fluctuating demand have created an environment full of uncertainty. No sector is immune to this pandemic created economic crisis. For instance, the Indian IT sector is taking all the measured to ensure that their business remains intact for at least the next 6 to 12 months. Renowned companies like Wipro, TCS, Infosys and more are taking cost cut measures without affecting their workforce too much.
Measures like cancelling this year appraisal, executive class employees taking salary cut of at least 25%, cancelling travelling allowance and more. Measures are being put in place to ensure the safety of both the organisation and the employees. Continue reading to learn in depth the steps taken by companies to overcome this COVID-19 driven crisis.
Companies are closely tracking expenses
Companies are undertaking an in-depth assessment of both their fixed and variable expenses. Moreover, they are comparing their actual revenue with the expenses and trying to come up with temporary and permanent solutions to overcome this economic crisis.
Companies have started planing for short term(s) policies
It is difficult to say when this pandemic created economic crisis will subside, that is why the companies are now preparing for worst-case scenarios and planning for short term basis. For instance, almost all companies have stopped spending on travel, marketing and rent for the next 3 months. Moreover, there is a salary cut of at least 25% for the executive class employees and companies have put a halt on bonuses as of now.
If the pandemic doesn’t stop for the next 9 months to a year, then the companies might have to reconstruct their business strategies. They will have to reduce the variable cost of rent, salaries, appraisal and more by a huge margin.
Companies are coming up with creative ways to continue floating above the water
Companies are coming up with new ways to increase revenue by selling their goods and services. Shopping websites like Only, Vero Moda and more have come up with this new pre-paid way to generate revenue. Shopping companies are selling selective goods at a huge discounted price. You have to pay for the goods now and they will deliver them as soon as the lockdown gets over.
Moreover, companies like Amazon, Flipkart, Swiggy and more are already using the contactless delivery mode to ensure the safety of both the employee and the buyer.
Companies are coming up with new initiatives to safeguard both the organisation and the employees. Moreover, as sceptical as it might make you feel, companies are still on a lookout for potential candidates. Many of these companies are using AMCAT from home to shortlist candidates.
So, use this time of uncertainty and improve your candidature for the future. And, like all the difficult situation, this too shall pass because time waits for none.
Best of luck!