The Covid-19 pandemic has resulted in a sudden downfall in industry operations with most companies eventually haulting their operations, leading to a rise in unemployment rate to 23 percent in the country. Most of the contract labours have lost their employment due to the lockdown, while others are not getting paid their daily wages and in the urban areas the unemployment rate has reached up to 14 percent in just a few weeks. In the same way, some major companies have let down their employees as they are undergoing losses and are unable to pay salaries for all the employees.
No one knows till now the lockdown continues in most of the countries and when do the industries reopen their actions and the normal functioning of the markets. So here are some of the ways how companies can manage downsizing caused due to pandemic –
- Cut Unnecessary Expenses –
In a recent survey, it is shown that almost every company has witnessed a downfall in their revenue. The large companies have got some big savings which will help them in paying their employees, however, most of the prominent companies and businesses have lost more than 30 percent of their revenue and market size. The employees are instructed to work from home by all the companies, an organization can cut short all it’s unnecessary expenses that may be related to the workplace and many other things. For example, if a firm was providing canteen or travel facilities to their employees they could stop it now as the employees are working from home through which they can save a large number of expenses.
If a company is unable to pay full salary to their employees, they can at least pay them 50-60 percent of their salary through which they can be able to lead their life. This way the organizations will be able to pay some wages to all their employees.
Instead of completing putting a hold on the organizational functions, the companies can provide their services online which can also fetch them some business and revenue. For instance, today most companies are offering their services online such as food, education, also the doctors are providing online consultations.
While offering services during this lockdown a company should evaluate which of their services can gain revenues and which are not all in demand. By examining the demand of services a company can increase the offers for those services which are highly requested and halt those services that are not at all gaining any pay for their business. By limiting the services a company can save extra expenses which will help them in running their business.
If any company is outsourcing any services which are unable at present due to lockdown, in such cases the organizations have to train their employees to multi-task. This can help the companies save their budget of approaching any new company for those services and pay them a large amount as it will be a fresh project for them. For example, delivery services, some of the companies tie-up with supply chain management companies to transport their products and services to their customers. In this period of lockdown, those companies can provide such services on their own.
Around 80,000 jobs have been cut off across the country due to this pandemic situation, and hence this has created a sort of recession condition in most of the countries. But, downsizing a company size or the number of employees is not the only solution to balance the financial status of an organization. There are many other aspects through which a company can minimize its expenses and use that money to keep their employees. It is essential that the management of any organization should evaluate extra expenditure and keep the workforce in order.