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Arghaa Academy of IR - Learn and Share 22/12/2018 Initiatives for Cost Reduction plan due to Volume Drop

[12/22, 8:51 AM] HR. Rajan Babu: Case Study: Assume that there is huge Volume drop due to Market Fluctuations, The sales is coming down for example for 20 Crs to 15 Crs and projections are for next six months. There is been undue pressure to reduce the cost. In this context.

1. What are the Steps as HR we would take in balancing the cost..

2. The steps as HR we would take to keep the talented pool retained. 3. By what  steps as HR should  we take in order to make our team members understand.

 Looking forward for contributions

[4:54 PM, 12/22/2018] HR Madukar Spic:

1.1 To freeze hiring

1.2 To trim the contract manpower 

1.3 Cut down unnecessary expenses including trainings & travel

1.4 Encourage trainings through employees as internal faculties 

1.5 Don’t increase health care premium

1.6 Have a careful analysis of PMS process and revisit salary levels by not cutting the existing 

1.7 Plan more outsourcing

[5:01 PM, 12/22/2018] HR Madukar Spic:

2.1 Keep meeting employees at regular intervals and communicate the company’s business and financial status 

2.2 Encourage small R&R plans

2.3 Encourage more creativity & suggestions

2.4 Paying salaries on time

2.5 Focus more on work-life balance

[5:11 PM, 12/22/2018] HR Madukar Spic Hr:

3.1 Constant communication 

3.2 Avoid speculations, misinformation & rumors 

3.3 Build confidence not uncertainty 

3.4 Counter negative reputations and image in the public 

3.5 Listen more 

[5:24 PM, 12/22/2018] HR Madukar Spic:

According to me, the modern HR strategic initiatives to tackle such crisis shall be to 

1. Form a cross-functional Crisis Mgmt team

2. Introduce Employee Assistance programs with motivational & psychological support

3. Staggered disbursal for annual payments / remittances 

4. Avoid costly litigations

5. Proper budgeting and Saving funds 

6. Plan expenses 

7. Introduce firm outplacement policies if necessary 

8. Not allowing & encouraging gossips

9. Promote mentorship 

10. Offer alternate work locations or transfers

[6:08 PM, 12/22/2018] HR Murugavel Hyundai Steel:

1, Review the shift working pattern.

2. Prefer 5Days work plan instead of 6 days.

3, Reduce overtime cost on wage bill.

4, Invite suggestions for energy and cost saving and reward for good ideas.

5. Utilize the internal resource at max. to handle maintenance issue.

6. Reduce the outsourcing if possible to do the work in-house.

7. Identify the areas of surplus resource and cut down.

8. Control business trips and encourage video conferencing.

9. Maintain all the welfare cost at the same level but not reduce.

Courtesy Arghaa Academy of IR Whatsapp group