News: Job cuts, salary adjustments in COVID-19 not as widespread as expected: Report

Employee Relations

Job cuts, salary adjustments in COVID-19 not as widespread as expected: Report

The CII-Talentonic HR Solutions joint research also observed that reducing the headcount has been given seventh priority out of 13 when it comes to what actions were taken to deal with the crises.
Job cuts, salary adjustments in COVID-19 not as widespread as expected: Report

As per the CII-Talentonic HR Solutions joint research report on 'Reimagining the Organization for the New Normal: Role of HR', job cuts and salary adjustments have not been as widespread as originally apprehended despite the severe impact on the revenue of companies in the aftermath of COVID-19.

The CII-Talentonic HR Solutions joint research also observed that reducing the headcount has been given seventh priority out of 13 when it comes to what actions were taken to deal with the crises. Moreover, reducing or postponing salary or other payouts has been given ninth priority out of 13.

Empowerment has mushroomed as organizations struggled to find the agility and flexibility to deal with the crises.

The report also noted that digitization has been a huge tailwind, but legacy issues remain.

Also, making more permanent design changes requires newer skills and that is a definitive work in progress. Many organizations that were spoken to seemed to be well on the way to a more permanent reset.

Lastly, the report noted that a new leadership is taking birth.

The study also identified a wide range of roles for the HR function which include-

  • HR consumerism: Building flexibility in processes to deal with a variety of situations and employment categories
  • HR architecture: Design thinking in structuring to produce an outcome
  • Keeping the balance between compassion and outcome, and between big thinking and implementation rigor
  • Curating the new culture: The new workplace, the new leadership conversations, and employee expectations.

 

"Despite the severe impact on revenue and cash, very surprisingly, the display of compassion and community outreach have produced a spontaneous level of commitment and loyalty from employees and job cuts and salary adjustments have not been as widespread an occurrence as originally apprehended," said the report.

As per the report, work from home has solved many problems albeit creating some concerns about fragmentation of cultures.

It said reimagining the organization and making more permanent design changes requires newer skills and that is a definitive work in progress. Many of the organizations that were spoken to seemed to be well on the way to a more permanent reset.

Around 250 companies participated in the survey spanning several sectors, conducted between August-end and mid-November.

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Topics: Employee Relations, #COVID-19

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