India Inc freezes hiring but no layoffs amid downturn
Grappling with the economic downturn, most Indian companies have frozen
their hiring plans for the short term, even as majority of them still rule out
layoffs as a way of controlling costs, a PwC said.
Over three-fourth (76%) of the respondents are reviewing their
recruitment strategy to manage their costs in these unprecedented times, the
survey by global consultancy PricewaterhouseCoopers
revealed.
The report stated that most companies have frozen or deferred hiring and are
adopting a "wait-and-watch" policy. However, most companies are
shying away from employee layoffs as a way of controlling costs, with as much
as 84% of the respondents voting against it.
"Most companies in India are gearing up for tough times but are
avoiding knee-jerk reactions, employers are uncertain about the extent,
duration and depth of economic slowdown and the timing of a recovery," PwC
India leader (People and Change Practice) Sankar Ramamurthy said.
The Banking, Financial services and Insurance sector (BFSI) is among the worst hit, with more than half of the respondents focusing on recruitment freezes in the wake of the economic downturn.
Interestingly, a smaller number of companies, about 21% in the financial services sector, have also admitted to considering layoffs, even as 43% mentioned selective hiring plans. Other sectors which have put a freeze on their recruitment plans include FMCG (70%), Manufacturing (63%), BFSI (57%).
Meanwhile, retail is another sector which has been badly hit by the slowdown with the major growth plans witnessing a setback and respondents from the sector were not averse to resorting to layoffs if other actions proved insufficient.
Further, smaller firms with employee strength of less than 100 are focusing on selective hiring for critical positions only. As per the PwC report, the top three focus areas which are being addressed by most companies during the downturn are recruitment, employee policies and compensation.
The Banking, Financial services and Insurance sector (BFSI) is among the worst hit, with more than half of the respondents focusing on recruitment freezes in the wake of the economic downturn.
Interestingly, a smaller number of companies, about 21% in the financial services sector, have also admitted to considering layoffs, even as 43% mentioned selective hiring plans. Other sectors which have put a freeze on their recruitment plans include FMCG (70%), Manufacturing (63%), BFSI (57%).
Meanwhile, retail is another sector which has been badly hit by the slowdown with the major growth plans witnessing a setback and respondents from the sector were not averse to resorting to layoffs if other actions proved insufficient.
Further, smaller firms with employee strength of less than 100 are focusing on selective hiring for critical positions only. As per the PwC report, the top three focus areas which are being addressed by most companies during the downturn are recruitment, employee policies and compensation.
|
|
