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One in three Indian companies have decided to freeze salaries, a new report shows

Source | | IANS

With businesses and economic activity almost halted for over a month now amid the coronavirus crisis and the nationwide lockdown, around 36 per cent companies in India are considering a freeze in salary hikes to manage their costs, according to a report by Korn Ferry.

In India, the most commonly implemented measures for rewards and benefits are promotion and salary hike. 

The report said that 23 per cent organisations have suspended the promotion increases and 18 per cent organizations deferring ordelaying salary increases.

The Korn Ferry report said: “36 per cent of organizations have implemented or are considering implementing a salary freeze to manage costs.”

In pics: Industries that are recession-proof (Slideshow by GoBankingRates)

a person holding a cell phone: The U.S. economy had been chugging along pretty well – that is, until the outbreak of the new coronavirus. The first case of COVID-19 in America was identified in January in Washington. As of February 2020, the economy still was adding jobs and the unemployment rate had dropped slightly to 3.5% from 3.6% in January. But by mid-March, the virus had reached all 50 states and was taking a toll on the economy. The first proof of the damage the coronavirus pandemic was wreaking came with a Labor Department report on March 19 showing a spike in jobless claims from COVID-19 related layoffs. Since that report was released, economists have been predicting that unemployment will surge and a recession will be inevitable. The retail, restaurant and travel and leisure industries already have been hit hard as a result of social distancing requirements in place to stop the spread of the coronavirus. Other industries also are feeling an impact and more will, too, if there is a recession. The question, then, is which sectors might be more insulated from an economic downturn. No job is truly recession-proof, but there are certain industries that will provide better job security than others. Using data from the Bureau of Labor Statistics, GOBankingRates identified five sectors that fared better during the Great Recession of December 2007 through June 2009 and should see lower unemployment rates than other sectors if the economy falls into a recession soon. If you’re in one of the worst jobs during a recession, you might want to consider looking for a new job in one of these industries.

The report by the global organisational consulting firm noted that given the government’s extensive requests on avoiding laying-off employees, majority of the companies, around 84 per cent have not implemented or are not currently considering permanent staff layoff or redundancies.

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