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Today's Eco Times: Staff faces Heat as economy turns Cold - a few thoughts While Indian companies are focusing on trimming their staff cost to weather the impact of the economic slow down This is good opportunity for HR Folks to make significant and value adding interventions to contribute to the healthy bottom line. Thought I will share a few areas for exploration . • Generating an Internal Profit plan (IPP) – through cost rationalization. It’s a bottoms up approach • Making the annual Increment a self Financing proposition – where each LOB/Function funds their annual increment cost through rationalization of the current pay cost so that there is a cost neutral impact on pay cost • Review of the cost benefit of “ outsource v/s in house “ management of Transitional costs in each function • Converting the fixed cost to variable cost so that any marginal increase is in certain ratio to the increase in the vale add of the service to the stake holders • “Cost deferred is loss denied”. Using the 3D approach to cost ; Define – Dialogue – Defer ; wherever feasible I have worked on some of these in my earlier organizations to good effect. The take away has been both psychological and fiscal ....and in any case it creates a corporate consciousness while meeting the clarion call by the challenging situation Thought I will share ....may be it can work wonders ....but certainly an opportunity for HR intervention to be in sink and n empathy with the Business and organizational imperatives |
