A dramatic meltdown after boom years globally has made Indian firms smarter in employee engagement and talent management, which will help it grow faster when recovery begins, predicts a study by global consulting firm Deloitte.
"Indian companies across sectors are trying to make the best of tough times and preparing for growth opportunities when the economy picks up. Unlike in the West where firing is the norm, our study shows Indian firms are focussing on talent management and cost cutting," Deloitte director P. Thiruvengadam told IANS.
A cross-industry dipstick survey on employee engagement in recessionary times by Deloitte's human capital advisory services found Indian firms were in a wait-and-watch mode without retrenching, but trying to balance both employee and operational costs.
Of the 130 firms approached for the survey, 65 participated, including 22 multinationals.
"Companies are focussing on their ability to attract, develop and retain top talent to remain viable and competitive in the short and long terms. Though campus offers have trickled down, selective hiring is taking place. Employees are being involved in cost management, quality and client servicing," Thiruvengadam said quoting the findings.
Of the participant firms, 44 percent represented TMT (technology, media and telecom), 27 percent manufacturing, seven percent FMCG (fast moving consumer goods), five percent pharma and 27 percent others.
The study found companies implementing metrics to determine return on investment on human resources. Investment in proprietary knowledge and technological upgrade is continuing, albeit slower than during the boom times.
"Lower attrition has turned out to be a boon, as firms are able to retain talent by setting higher performance benchmarks, with stringent measures and quarterly monitoring. By recruiting consultants and freelancers, firms are able to save on employee benefit costs," Thiruvengadam said.
The eight-week survey said companies were substituting lucrative bonus and international travel with opportunities for advancement and flexible working hours to retain employees.
"Smart firms have turned inward, consolidating operations, rationalising requirements and optimising resources to ride the slowdown," Thiruvengadam said.
The survey also found companies were not cutting back on training programmes but only reducing training costs. The focus is on empowering employees with multi-skills to handle different tasks and building a strong leadership pipeline.
Showing posts with label global meltdown. Show all posts
Showing posts with label global meltdown. Show all posts
Sunday, July 19, 2009
Tuesday, June 9, 2009
Gobal meltdown showing recovery signs
A forward-looking measure of hiring expectations held steady in the United States and other large economies amid signs employment is starting to stabilize, but prospects in several countries worsened, according to a quarterly survey by Manpower Inc.
The global staffing services company said its seasonally adjusted U.S. net employment outlook remained at minus-2 for the third quarter, unchanged from the second quarter but down from a reading of plus-12 a year ago.
The index measures the difference between employers who plan to add jobs and those who expect to cut them. The company adds seasonal adjustments in countries where its survey data goes back at least four years.
''Overall it's pointing to some real stability, which is massively important,'' Manpower Chief Executive Jeff Joerres said, adding that Friday's U.S. jobs report also hinted at stability.
Last week, the government reported the loss of 345,000 jobs outside the U.S. farm sector in May, the fewest cuts since September, with the unemployment rate jumping to 9.4 percent.
The job cuts were smaller than economists expected.
U.S. sectors where hiring managers expect to add workers include construction, wholesale and retail trade, nondurable goods manufacturing and leisure and hospitality. Sectors in which prospects are worse than three months ago include government, education and health services, according to the survey released on Tuesday.
Manpower's U.S. survey, based on interviews with about 28,000 employers, dates back to 1962 and is considered a leading indicator of labor trends. The index peaked this decade near 25, shortly before the 2001 recession.
The Milwaukee-based company does business in 80 countries and generates the bulk of its sales and profits outside the United States. Its international survey included responses from 70,000 employers.
CAUTION IN BERLIN, OPTIMISM IN OSLO Employers in other large labor markets -- including the United Kingdom, Japan and China -- also indicated stable hiring outlooks, while those in Mexico, Taiwan, Singapore and Australia said prospects are better than in the second quarter.
However, the employment outlook worsened slightly in Canada and some large European labor markets, such as France, Germany, and the Netherlands. Manpower's Joerres said the declines were modest, reflecting restrictive European labor laws.
''It's a trend down, but it's nothing really dramatic,'' Joerres said.
Hiring activity is forecast to be positive in Norway, Poland and the Czech Republic, and the survey showed sequential improvement in Ireland, Sweden and Spain.
Employment prospects deteriorated in India as employers in the service industry anticipate weaker demand from offshore clients. Still, Indian employers were the most optimistic in the Asia-Pacific region with a net employment outlook of 19, seasonally adjusted.
Joerres said it was too early to tell whether world labor markets would stage a synchronized recovery, and too soon to predict what shape any recovery would take.
Economists have debated whether to expect a U-shaped gradual recovery, a V-shaped fast one, or a W-shaped recovery that includes a second dip after an initial period of improvement.
''Early indications are it's not going to be a sharp V,'' Joerres said.
Employers are in wait-and-see mode, he added, so every fresh piece of information takes on added importance. Rising interest rates and $70 oil help create an environment of uncertainty for employers.
''While it might be interesting to do some anticipatory hiring, it's just not possible,'' Joerres said. ''Other data points say all is not good yet.''
The global staffing services company said its seasonally adjusted U.S. net employment outlook remained at minus-2 for the third quarter, unchanged from the second quarter but down from a reading of plus-12 a year ago.
The index measures the difference between employers who plan to add jobs and those who expect to cut them. The company adds seasonal adjustments in countries where its survey data goes back at least four years.
''Overall it's pointing to some real stability, which is massively important,'' Manpower Chief Executive Jeff Joerres said, adding that Friday's U.S. jobs report also hinted at stability.
Last week, the government reported the loss of 345,000 jobs outside the U.S. farm sector in May, the fewest cuts since September, with the unemployment rate jumping to 9.4 percent.
The job cuts were smaller than economists expected.
U.S. sectors where hiring managers expect to add workers include construction, wholesale and retail trade, nondurable goods manufacturing and leisure and hospitality. Sectors in which prospects are worse than three months ago include government, education and health services, according to the survey released on Tuesday.
Manpower's U.S. survey, based on interviews with about 28,000 employers, dates back to 1962 and is considered a leading indicator of labor trends. The index peaked this decade near 25, shortly before the 2001 recession.
The Milwaukee-based company does business in 80 countries and generates the bulk of its sales and profits outside the United States. Its international survey included responses from 70,000 employers.
CAUTION IN BERLIN, OPTIMISM IN OSLO Employers in other large labor markets -- including the United Kingdom, Japan and China -- also indicated stable hiring outlooks, while those in Mexico, Taiwan, Singapore and Australia said prospects are better than in the second quarter.
However, the employment outlook worsened slightly in Canada and some large European labor markets, such as France, Germany, and the Netherlands. Manpower's Joerres said the declines were modest, reflecting restrictive European labor laws.
''It's a trend down, but it's nothing really dramatic,'' Joerres said.
Hiring activity is forecast to be positive in Norway, Poland and the Czech Republic, and the survey showed sequential improvement in Ireland, Sweden and Spain.
Employment prospects deteriorated in India as employers in the service industry anticipate weaker demand from offshore clients. Still, Indian employers were the most optimistic in the Asia-Pacific region with a net employment outlook of 19, seasonally adjusted.
Joerres said it was too early to tell whether world labor markets would stage a synchronized recovery, and too soon to predict what shape any recovery would take.
Economists have debated whether to expect a U-shaped gradual recovery, a V-shaped fast one, or a W-shaped recovery that includes a second dip after an initial period of improvement.
''Early indications are it's not going to be a sharp V,'' Joerres said.
Employers are in wait-and-see mode, he added, so every fresh piece of information takes on added importance. Rising interest rates and $70 oil help create an environment of uncertainty for employers.
''While it might be interesting to do some anticipatory hiring, it's just not possible,'' Joerres said. ''Other data points say all is not good yet.''
Friday, June 5, 2009
Saigi carpet ''ray of hope'' for dying Bhadoi carpet industry
The growing export of Saigi carpet has not only proved a hit in the Gulf countries, but also revived the recession-affected Bhadoi carpet industry in Uttar Pradesh.
The economic meltdown had adverbely affected the production and export of the carpets to a large extent.
The child labour was another factor that had minimised the export of the carpets from the state to the US and several European countries.
However, the growing popularity of the synthetic Saigi carpet in the Gulf countries have saved the Bhadoi carpet industry from dying.
The Carpet Export Promotion Council (CEPC) had recently organised an exhibition in Gulf countries, where Saigi carpet remained a hit and bagged a good number of orders, CEPC Deputy Regional Director Vijay Sinha said.
These orders were eyed as a ray of hope for the drowning carpet industry of Bhadoi, he added.
So far, the export of the Indian carpets was restricted to the western countries, where in the United states comprised the largest pie of 40 per cent. Canada, France, Germany and Britain were the other countries, where Carpets were exported.
For the past sometime, the export of the carpets suffered due to the global economic slump.
The economic meltdown had adverbely affected the production and export of the carpets to a large extent.
The child labour was another factor that had minimised the export of the carpets from the state to the US and several European countries.
However, the growing popularity of the synthetic Saigi carpet in the Gulf countries have saved the Bhadoi carpet industry from dying.
The Carpet Export Promotion Council (CEPC) had recently organised an exhibition in Gulf countries, where Saigi carpet remained a hit and bagged a good number of orders, CEPC Deputy Regional Director Vijay Sinha said.
These orders were eyed as a ray of hope for the drowning carpet industry of Bhadoi, he added.
So far, the export of the Indian carpets was restricted to the western countries, where in the United states comprised the largest pie of 40 per cent. Canada, France, Germany and Britain were the other countries, where Carpets were exported.
For the past sometime, the export of the carpets suffered due to the global economic slump.
Friday, May 8, 2009
US economic downturn losing steam
It might be too early to celebrate but the severest recession in the US economy, impacting the world, is showing signs of losing steam with encouraging signs on various fronts this week.
Among positive indicators, the number of first-time jobless claims fell sharply and bargain-hungry shoppers gave a boost to April sales for discount retailers, and a report showed the pace of decline in the service sector slowing, the Washington Post reported Friday.
These signs come after Federal Reserve chairman Ben S. Bernanke's somewhat optimistic assessment of economy Tuesday.
"The bottom is forming," Joel L. Naroff, president of Naroff Economic Advisors, told the Post. "It doesn't say we're out of the woods... but I think things are turning."
However, analysts pointed out that though the panic following the collapse of Lehman Brothers is over, a recovery is still months away and is likely to be slow and unemployment could keep rising for a while even after the recession ends.
While the Labor Department said first-time jobless claims dropped to 601,000 last week, Arpitha Bykere, lead analyst for RGE Monitor, said the figure is likely to remain over 500,000 for a while even if it continues to fall.
Despite such warnings on various fronts, many economists are now hopeful, the post added.
Bernanke this week underlined that optimism when he said the economy's "pace of contraction may be slowing", consumer demand "may be stabilising" and the housing market has "shown some signs of bottoming".
Among positive indicators, the number of first-time jobless claims fell sharply and bargain-hungry shoppers gave a boost to April sales for discount retailers, and a report showed the pace of decline in the service sector slowing, the Washington Post reported Friday.
These signs come after Federal Reserve chairman Ben S. Bernanke's somewhat optimistic assessment of economy Tuesday.
"The bottom is forming," Joel L. Naroff, president of Naroff Economic Advisors, told the Post. "It doesn't say we're out of the woods... but I think things are turning."
However, analysts pointed out that though the panic following the collapse of Lehman Brothers is over, a recovery is still months away and is likely to be slow and unemployment could keep rising for a while even after the recession ends.
While the Labor Department said first-time jobless claims dropped to 601,000 last week, Arpitha Bykere, lead analyst for RGE Monitor, said the figure is likely to remain over 500,000 for a while even if it continues to fall.
Despite such warnings on various fronts, many economists are now hopeful, the post added.
Bernanke this week underlined that optimism when he said the economy's "pace of contraction may be slowing", consumer demand "may be stabilising" and the housing market has "shown some signs of bottoming".
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