Amid rising concern over COVID-19, firms in India count on damaging impression on their enterprise within the subsequent 12 months, and for some the opposed impression could last more, driving organisations to contemplate “workforce optimisation”, a survey stated on Tuesday.
According to the Willis Towers Watson survey, 57 per cent of organisations in India count on a “moderate-to-large” damaging impression on their enterprise within the subsequent six months, whereas 46 per cent count on this to final over a 12-months interval.
The survey titled, COVID-19 India Readiness Survey, famous that 19 per cent count on an opposed impression to final over a two-year interval, whereas solely 5 per cent of organisations count on a constructive enterprise impression throughout the subsequent 12 to 24 months.
“The tough economic conditions and anticipated business impact could drive organisations to consider workforce optimisation,” stated Rohit Jain, Head of India, Willis Towers Watson.
As per the survey, nearly one in three respondents anticipate that their 2020 annual bonus for executives and workers will likely be impacted, whereas 17 per cent count on an impression on their 2020 Long Term Incentive plans.
“March to April is the efficiency assessment interval and we’re seeing organisations adopting a wait-and-see method.
” Most organisations are more likely to contemplate the choices of selective increments for essential ability workers, defer workers increments by three to 6 months, and even get rid of increments altogether if the opposed circumstances prevail,” stated Rajul Mathur, Consulting Head, Talent and Rewards, Willis Towers Watson, India.
The survey discovered that 42 per cent of respondents haven’t taken a call on wage increment budgets for this yr, whereas 33 per cent indicated that efficiency value determinations and bonus pay-outs will occur as deliberate.
Moreover, 77 per cent stated that there will likely be no discount in salaries and 53 per cent responded that there have been no changes to the gross sales incentive pay-outs.
“Employers should take an emphatic and considerate approach and evaluate options such as staff redeployment, reduced working hours/days, long service leave, sabbatical, furlough, hiring freeze and voluntary pay cuts, before any serious consideration of a workforce reduction,” Jain stated.
The survey was carried out from March 20 to 31, 2020 and information was collected from practically 417,000 workers working throughout sectors equivalent to Financial Services, Healthcare, IT & Telecom, Manufacturing, Public Sector & Education and Wholesale & Retail.