Is the current global meltdown beginning to affect the Indian youth?

Frowning faces, twisted eye-brows, shrugs and shudders are amongst the most common expressions radiating from people all over, irrespective of their profession, class, age, experience and all those parameters which, in a utopian world, would have ensured infinite glory, if not job security and certain future. What started out as a sub-prime lending crisis in the U.S. has now transformed into a 'shock wave' giving everyone a taste of the tremor it beholds. And nobody is left untouched by the present global financial fiasco - not even the youth community, which had only recently understood how grave inflation could be.

Being an engineering undergraduate, it's not difficult for me to explain how the ready-to-step-into-the-corporate-world-undergraduates of different engineering domains are facing a bolt from the blue. With lay-offs, pink slips, downsizing, and other scary synonyms hitting the front page of the newspapers, students aren't quite surprised to learn long before that a number of traditionally top-recruiting companies won't even be visiting the campus, forget recruitment. The companies that did visit reflected the current scenario in terms of the 'infinitesimal' number of students finally recruited and their relatively meagre pay package. Even young graduates who had, some years ago, successfully made into different MNCs echoed similar sentiments.

Having said that, 'there are always two sides to a coin'. The lucky side tells a different story altogether. The chain of events over the last fifteen months or so culminating into the present global meltdown, although sad, has both inspired and pushed the youth to develop a completely global outlook and take calculated steps in all their ventures. They have quickly understood that this scenario requires an utter professional approach and it's time we took things not for granted. This thinking is reflected in their future course of action. The best example would be that of the IIM students, a major number of who are more interested in self-ventures, as entrepreneurs, or committing to a 'start-up business'. Now, as entrepreneurs, they would ultimately create a wide range of avenues for others, thus, countering situations like that of now.

'In the medieval times, being unable to read and write was a curse. In the modern era, lack of monetary knowledge is a curse'. The youth today has quickly realized the practical importance of these words and therefore, there has been a gradual and steady inclination towards getting the basic skills right when it comes to finance and its derivatives. It won't be an exaggeration to assume that soon there will be a time when the global-financial-system-management wouldn't lie entirely in the hands of the 'grey-beards', which is apparently the case now. Moreover, it all works out good for a country, in particular, which can be rest assured of a strong economy largely impervious to foreign influences. And more so in case of India, which houses around 55 per cent young and eager-to-learn blood.

Another very important lesson learnt is the perils of globalization. For some time now, the youth of India, to a large extent, had an undimensional outlook towards globalization which had largely, and not entirely rightly, influenced their approach to various opportunities. Now would be a good time to rethink.

By and large, the current financial crunch has affected the Youngistan in more ways than one. Arguably, the positive impacts far outweigh the negative ones, and in due course will prove its worth.

Ref: http://www.timesascent.in

Layoffs can increase your liability

As the economy continues to contract, both large and small companies are facing layoffs. When downsizing, organizations face an increase in work-related injuries and claims alleging disparate treatment. Even though the employee who files the claim may no longer work for you, the claim will continue hurt your workers’ compensation loss history, sometimes for many years. Employment claims, which cost literally tens of thousands of dollars just to defend, will adversely affect your loss record, as well.

Facing layoffs, a proactive plan to prevent post-layoff injury reporting and avoid employment claims can help protect your company.

Here are steps you can take to minimize the risk of post-layoff claims.

1. Develop a lay-off plan before cuts are necessary. With a plan in place before you need it, you can prevent a great deal of workplace turmoil. Ensure that your plan doesn’t adversely impact protected groups—women, minorities or workers over 40. In larger operations, this simply cannot be done without expert assistance. With your broker’s help, you may be able to involve your insurance carrier in the process to help design and implement a pre-layoff process that protects your organization. The cost of developing the plan may be only a fraction of the cost of defending one employment claim.

2. Use a performance-based layoff plan with written criteria for termination. Don’t be afraid to eliminate slackers. This tells your star performers that you appreciate their hard work and loyalty. But before you make a subjective decision to terminate, be sure you base that conclusion on objective standards. Consistently reviewing and documenting performance before terminations makes it is easier to defend disparate treatment claims.

3. Train supervisors and managers who will make employment decisions. Managers should be well-versed in the termination process and know enough financial details to explain the layoffs. Clearly stating to employees why they are being terminated can help if you are later faced with an employment claim.

4. Conduct exit interviews with every employee who will be laid off or terminated. Ensure at least one company executive, and if possible a legal consultant such as a human resources consultant or attorney attends, as well. During the interview, ask that employees help you to complete and then ask them to sign a standardized checklist that includes administrative details such as key surrender. Ask on that questionnaire if the employee has suffered a workplace injury and the current status of that injury.

If non-English speaking employees work in your facilities, have forms available in other languages. While some experts recommend employees sign injury waivers, waivers rarely work as intended and could be perceived as a sign of bad faith. If your downsizing generates publicity, the way in which you handle the closure will be closely scrutinized by attorneys and the media.

5. Offer post-placement assistance such as skills assessments, resume assistance and job search help. The sweeter the severance packages the better. This includes extended help with health benefits and other goodwill efforts.

6. Act quickly, but be careful what you promise. Statements like “We’re through with the cuts” can backfire. Once the decision is made to cut jobs, do so quickly, because not matter how closely organizations guard their decisions, word will probably leak out and your workforce will be negatively impacted.

Eliminating positions is never easy, but the way you handle layoffs is critical. Treat employees with dignity and respect, not just because disgruntled employees can damage your reputation, but because it is the right thing to do. Remember that you may be faced with unwanted media attention and a barrage of plaintiff firms targeting your former employees. Be sure to empathize with employees’ feelings and stressors that accompany a layoff, but protect your organization in the process.

Downsizings and Mergers

Firm’s often use downsizing – reducing, usually dramatically, the number of people the firm employs to better their financial position. Yet many firms discover operating earnings don’t rise after major cuts. Low morale among those remaining may be part of the problem.

From a practical point of view, firms can take steps to reduce the remaining employees’ uncertainty and to boost their morale. A post-downsizing program at Duracell, Inc., (now part of Dow), illustrates what you can do. The program had post-downsizing announcement activities, including a full staff meeting at the facility; immediate follow up in which remaining employees were split into groups with senior managers to express their concerns and have their questions answered; and long term support, for instance by encouraging supervisors to meet with employees frequently and informally to encourage an open door atmosphere. Other companies, such as the Diners Club subsidiary of Citigroup used attitude surveys to help management monitor how post-downsizing effort are progressing.

Regardless of why you’re downsizing, think through the process, both to avoid unnecessary consequences and to ensure the process is fair. Here are some guidelines for implementing a reduction in force.

Identify objectives and constraints: For example, decide how many positions to eliminate at which locations, and what criteria to use to pinpoint the employees to whom you’ll offer voluntary exit incentives.

Form a downsizing team: This management team should prepare a communication strategy for explaining the downsizing; establish hiring and promotion levels; produce a downsizing schedule; and supervise the displaced employees’ benefit programs.

Address legal issues: You’ll want to ensure that others won’t view downsizing as a subterfuge to lay off protected classes of employees. Therefore, review factors such as age, race, and gender before finalizing and communicating any dismissals.

Plan post-implementation actions: Activities such as surveys and explanatory meetings can help maintain morale. Similarly, some suggest a hiring freeze of at least six months after the layoffs have taken effect.

Dress security concerns: As with any large layoffs, it may be wise to have security personnel in place in case there’s a problem from one or two employees and to follow the dismissal checklist discussed earlier.

Downsizings needn’t necessarily suggest the horror stories the press occasionally characterizes them as. Information sharing in terms of providing advanced notice regarding the layoff, and interpersonal sensitivity in terms of the manager’s demeanor during lay-offs can both help cushion the otherwise negative effects.

One lawyer contends that when employees seek out lawyers after layoffs it’s often because they’re unhappy with the layoff was achieved. The people who will actually be announcing the downsizing and dealing with the employees need to be able to explain factually what is happening and what the employees’ rights are, and must limit their comments to what is true.

In terms of dismissal, mergers and acquisitions are usually one-sided. One company essentially acquires the other, and it is often the employees of the latter who find themselves looking for new jobs. In such a situation, the remaining employees in the acquired firm may be hypersensitive to mistreatment of their colleagues. Seeing your former colleagues fired is bad enough for morale. Seeing them fired under conditions that smack of unfairness poisons the relationship. As a rule, therefore:

1. Avoid the appearance of power and domination
2. Avoid win-lose behavior
3. Remain businesslike and professional in all dealings
4. Maintain as positive a feeling about the acquired company as possible
5. Remember that the degree to which your organization treats the acquired group with care and dignity will affect the confidence, productivity, and commitment of those who remain.

Downsizing in Corporate Business

Downsizing is very common in corporate business in the United States. In fact, there are 50% more victims of downsizing in the United States every year than there are victims of violent crime. Downsizing is so common in the United States that the United States Bureau of Labor Statistics publishes quarterly statistical reports on 'mass layoffs.' More than forty-three million jobs have been lost to downsizing since 1979. Furthermore, (75%) of households have had a close encounter with downsizing since 1980, and one-third of people have actually lost a job because of downsizing. Another 40% know someone who has lost a job due to downsizing.

Unfortunately, the majority of people who have been downsized (65%) report earning lower salaries than they earned in the jobs they lost. This means only slightly more than one-third earn equivalent or higher wages in their next jobs. Not surprisingly, one in ten adults who has been downsized report that a major crisis has resulted in their lives as a result.