Pink slips: Are we ready?

In the scenario of depressing global economy, pink slips are inevitable both for developed & developing countries. Rising crude oil prices (in the past), financial scams, and large financial houses filling for bankruptcy all are not good signs and created more intense situation in the market. It is just a matter of time, when the pinkslip start hitting Indian corporate. Possibly western countries are better equipped to manage pinkslips, both financially and socially. For them, it is part & parcel of the game which needs to be taken in stride. Indian society, individuals and corporate world yet not geared up for the same.

I am not advocating that pink-slip is only painful in India and ROW is absolutely insulated with the pain. Pain doesn’t discriminate nationalities, color, and race. Issue is, Indian society looked down on the individuals, rather than accepting as fallout of economic crisis. Apart from job-loss, pink-slips bring lot of issues such as finance management and emotional drain on the individuals & their families. These issues are more or less common, possibly Indians are better equipped for finance management. One of the primary reasons is the large thrust on saving as a regular habit. This is in contrast to western counterparts, where living on credit is the part of life. I guess family support is common across the geo. Possibly Indians again score brownie points here, due to parental & sibling support unlike to western counterparts.

Only disadvantage is society is yet to develop mature approach towards this flavor of corporatism. Corporate practicing pink-slip practice face heat from most of the society houses i.e. political, individual, institutions. Indian corporate needs to manage this very tactfully. Many of the companies are doing in the name of performance review process and bottom 5 or 10% are shown door. This is classical tune of hush-hush pink-slip shielded under the performance review process.

Read following articles:

http://infotech.indiatimes.com/articleshow/3467172.cms

http://www.workexp.com/2008/09/15/satyam-fires-6000-employees/

Few of the corporate didn’t learned from the peers and tried doing it the western counterparts of announcing layoff and asking employees to leave immediately. One of the recent examples is Jet Airways announcement of 1900 layoffs, followed by large scale protests by impacted employees, government, oppositions. Eventually Jet senior mgmt forced to revert back the decision amid huge protests.

This gives lessons learned to corporate, layoffs are inevitable and do it hush-hush style in chucks rather than big-bang approach. To the individuals, we need to accept this as part of life. For last decade or so, there were tremendous opportunities created in the market. This is cyclic and we are experiencing turbulence as down-side of Sino-cycle. Sooner or later, economy should touch upon the up rise curve and hopefully market retains to normal if not better. In any case as an Individual we need to plan pro-actively for the rainy day, rather than caught unwanted in undesired situation.

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One Response to Pink slips: Are we ready?

  1. Ashutosh V says:

    Dear Amal,

    Your article is so true about this pink slip business in perspect to the Indian scenario. It is all about those over enthusiastic / Ill planned Managers who make huge projections, to meet it they recruit fresh resources, screw the salary patterns of the industry and then show them the door. Moreover this is a good opportunity for a manager to get the non-favourites out. I have never seen a pink slip holder being an average or below average. We as Indians should accept Pink slips more as a part and parcel of the booming economy.

    Regards

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