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Recession is the current issue in the world. Most common words, we come across these days are recession, depression, slowdown, downturn, etc. In any media or magazine, they give news on fashion, cricket and many other issues, but they all have one common news, i.e., slowdown in economy.
By the word “Slowdown” and “Recession”, people get confused and mix the two terms. As we hear about the word recession ,we start saving, which affects the whole market and make the situation more complicated. A recession means decline in gross domestic product(GDP), it affects the wholesale and retail markets, employment, industrial production and income. A recession is often defined as slowing down of two quarters or six months in negative growth.
During the period of recession people become unemployed, it also has an affect on the production of the industry because there is no demand in the market. People set their minds to save for the future, which leads to decrease in demand. Thus makes the economic conditions worsen.
HR plays a vital role during the recession period and help to sustain the company and increase the entire economy. HR people take unpleasant decision of reducing the numbers and land up at recession. We can't ignore the fact that “a good or bad neither of two situations last long”. Because who knows, after a year, we may have to hire just double the number that we removed. That time we won't be able to achieve our targets and will have to bear high costs for recruiting and training.
Downsizing and layoff are two different terms, downsizing means terminating permanently and layoff is temporary downscaling in which later on, the employees can join the company. We need to take action in significant manner so that we come back to normal position fast, when the condition in the market is back to normal.
Reducing the number of employees by downsizing results in decreasing the costs and proves effective to the company. Downsized companies either continue the same work with few employees or make certain changes in their activities. Providing incentives for early retirements and transfering to relative branch are certain ways for downsizing, but the most common way is to terminate certain employees.
Downsizing hurts the employees and the company as well.
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Recession - Just A Mindset
Recession is the current issue in the world. Most common words, we come across these days are recession, depression, slowdown, downturn, etc. In any media or magazine, they give news on fashion, cricket and many other issues, but they all have one common news, i.e., slowdown in economy.
By the word “Slowdown” and “Recession”, people get confused and mix the two terms. As we hear about the word recession ,we start saving, which affects the whole market and make the situation more complicated. A recession means decline in gross domestic product(GDP), it affects the wholesale and retail markets, employment, industrial production and income. A recession is often defined as slowing down of two quarters or six months in negative growth.
During the period of recession people become unemployed, it also has an affect on the production of the industry because there is no demand in the market. People set their minds to save for the future, which leads to decrease in demand. Thus makes the economic conditions worsen.
HR plays a vital role during the recession period and help to sustain the company and increase the entire economy. HR people take unpleasant decision of reducing the numbers and land up at recession. We can't ignore the fact that “a good or bad neither of two situations last long”. Because who knows, after a year, we may have to hire just double the number that we removed. That time we won't be able to achieve our targets and will have to bear high costs for recruiting and training.
Downsizing and layoff are two different terms, downsizing means terminating permanently and layoff is temporary downscaling in which later on, the employees can join the company. We need to take action in significant manner so that we come back to normal position fast, when the condition in the market is back to normal.
Reducing the number of employees by downsizing results in decreasing the costs and proves effective to the company. Downsized companies either continue the same work with few employees or make certain changes in their activities. Providing incentives for early retirements and transfering to relative branch are certain ways for downsizing, but the most common way is to terminate certain employees.
Downsizing hurts the employees and the company as well.
Back