Friday, Sep 25 2020 | Time 12:22 Hrs(IST)
image
  • SPB condition remains critical, security tightened at hospital
  • PM flays Oppn for misleading people on agri and labour reforms
  • nCoV: India records 86,052 new cases, 1,141 deaths
  • Police officer critically injured in road accident in Sopore
  • EC likely to announce dates of Bihar Assembly elections
  • 608 new Coronavirus positive cases, 7 deaths reported in UT since last 24 hrs
  • Two LeT militants killed in Anantnag encounter
  • DGP sanctions certificates, cash reward for 25 CRPF personnel for CT operations
  • Telangana records 2,381 new COVID-19 positive cases, 10 fresh fatalities till Thursday night
  • Operation against militants resumes in south Kashmir's Anantnag
  • Militants attack security guards posted at mini secretariat Shopian
  • Two militants arrested, arms, ammunition, cash recovered in south Kashmir
  • New age e-commerce products misleading consumers: Public Health Experts
  • Azam Khan's son could be debarred for 6 years for contesting any election
Press Releases » Business Wire India


If Governments Can, Why Can't Private Business Organizations Cut or Defer Salaries, Questioned 72 Percent Countrywide CEOs Surveyed

If Governments Can, Why Can't Private Business Organizations Cut or Defer Salaries, Questioned 72 Percent Countrywide CEOs Surveyed
Husys Industry Pulse Survey on People Impact of COVID-19
Business Wire India
Work From Home works. By and large, it was successful: reveals Husys Consulting Pulse Survey on the “Impact of COVID-19 on People and Industries”
 


Business owners want government to pay employees PF and ESI for 3 months. They also want Rebate in Taxes
 


The Work From Home (WFH), implemented by IT & ITEs, Manufacturing and Capital Intensive and Allied Industries and Modern and Online Retail industries, by and large, has been successful. 58 percent of the companies surveyed implemented 100%, some could implement to the extent of 70 percent and very few less than 50 percent. 
 
Lockdown impacted especially the Startups, SME’s in India with an impact of 60% to 90% for 350 Companies on day 1 and for significant 110 Companies more than 500 people, the pandemic affected 100%. 
 
72% of CEOs surveyed felt that it was not appropriate to give paid leaves to employees during the lockdown as advised by the government. Only 28% felt it was appropriate. Further, they questioned the double standard of the governments. When governments can slash or defer salaries their employees, why can't private business houses are allowed. When governments can do this, why can’t we, they wanted to know. 
 
During the survey, the Business Owners came up with top five suggestions to the Government, which include as follows.



  1. Government should pay employees PF and ESI for the month of March, April and May

  2. To provide support to the industries by providing Rebate in taxes, reduce interest percentage, provide employees welfare activities, make sure utilities are available at controlled cost.

  3. Government should pay 50% of Employee cost for MSME with turnover less than 50cr for shutdown period and 25% for a period of 3 to 6 months beyond shutdown till business conditions improve

  4. Deposit of Rs 15 lakhs to each family as promised by PM earlier or some of amount to combat next 6 months. Smaller companies need access to easy loans from banks and NBFCs to rebuild their businesses

  5. Release some Unemployment Allowance especially those who are jobless and who were earning less than Rs. 15,000/- per month



 
These and more interesting observations found in a survey “Impact of COVID-19 on People and Industries” conducted during the March 29th to April 29th by a Hyderabad based Husys Consulting Limited, an HR Function Management Company, headquartered in Hyderabad. Husys conducted a quick Pulse Survey to know the impact of COVID-19 Pandemic on People due to Business Disruption.
 
 The survey by Hyderabad based Husys Consulting Limited, India's first listed HR Company on the NSE Emerge SME platform (Ticker: HUSYSLTD). It covered 500 plus companies across India and across cross-section of industries such as -



  • IT & ITES Product &Services: 45%

  • Manufacturing & Capital Intensive and Allied Industries: 40%

  • Modern Retail/Online & Other Businesses: 15%



 
Shared Gundlapally Ramalinga Reddy, Founder, Chairman & Managing Director, Husys Consulting Limited in a press note issued to the media in India today. 
 
High Affected Industries includes: Aviation, Hotel Restaurant & Tourism, Auto Dealerships, Ceramic Tiles, Gems & Jewellery, Retail, Shipping, Ports & Port Services, Seafood and Poultry and Microfinance Institutions.
 
The few Key Observations of the respondents are:
 



  • Employees Strength included 21% (105 Companies) with 500+ people, 16% (80 Companies) with 51-100 people while 40% (200 Companies) for less than 50 people.

  • For 54% of the Participating Companies, Work from Home seemed a possibility though some faced challenges of productivity due to connectivity issues & for smaller firms Data Security was one of the major concerns.

  • Was WFH (Work From Home) a Success: Out of 270 Companies, 159 Companies implemented WFH 100% immediately, 57 Companies could manage 70% and about 57 Companies were able to execute less than 50% which resulted in adding stress on Business Continuity due to Reduced Revenues & Unsatisfied Clients.

  • Lockdown impacted especially the Startups, SME’s in India with an impact of 60% to 90% for 350 Companies on day 1 & for significant 110 Companies the pandemic affected 100% for organisations of more than 500 people

  • 100 Companies accounting 22% of survey responded the Business Impact is Upwards of 30% up to 60%

  • 17% Companies did not pay the Senior Management Salaries at all with 8% Middle Management not receiving salaries & with 4% people receiving up to 30% Salary, 8% people receiving up to 50% Salary, 9% people receiving up to 75% Salary

  • 77% of Employees received salary in full with 25% of reduction in March Month salary for 9% & Rest paid in full with 24% Companies stating April to May No Pay/Can’t pay 

  • More than 50% of paid companies reduced from 47% (No. of Companies) to 34.34% (No. of Companies) for the month of May assuming no stimulus package from Govt.

  • Considering the solutions in this Pandemic, 23% (120-Companies) Considering for Reducing Salaries & Staff, another 12% (95 Companies) to layoff/Terminate people, 24% to reduce some & of the salaries & another 29% to maintain the Status Quo.

  •  More Actionable ideas include More people in Sales & focus on Revenue, Reduce cost on Travel, Vehicles, Rent, Engagement Activities, Loaning people to other Cos, WFH continuity for some & Onsite called back to Offshore.

  • Definitive Solutions by Business includes 115 Companies reporting No Further Increments, No new Hiring, Focus on more responsibilities on existing staff.

  • 130 Companies to Increase No. of Hours & Adjustment of Leaves & Leave without Pay, While Others to look at GIG Workers, New Business Models, Build New products, Improved Automation.

  • SME’s when asked whom they approach for advice in difficult times, 55% accounted for from well-wishers coupled with their own Decision making. 29% to go to the Specialist Advisory with the Government Advisory for less than 12%

  • On Govt’s Advice for paid leaves for Employees during lockdown, 72% CEO feels not Appropriate, only 28% mentioned as appropriate.



 
“While advising us to Pay, why government is differing payments is a big question”, some business owners raised.


More News

Radha Mohan Singh Inaugurates Syngentas Modern Krishi Mandi at Areraj

24 Sep 2020 | 3:49 PM

Radha Mohan Singh Inaugurates Syngentas Modern Krishi Mandi at Areraj

see more..
Educationist, Fatema Agarkar’s Unique Proposition Focuses on the Power of Play and Education

Educationist, Fatema Agarkar’s Unique Proposition Focuses on the Power of Play and Education

24 Sep 2020 | 2:47 PM

Educationist, Fatema Agarkar’s Unique Proposition Focuses on the Power of Play and Education

see more..

Brand Opus India Organises Virtual Awards to Felicitate the Winners at Achievers Icon Awards - 2020

24 Sep 2020 | 12:50 PM

Brand Opus India Organises Virtual Awards to Felicitate the Winners at Achievers Icon Awards - 2020

see more..
Nexus Startup Hub and Digit Tie-up to Promote Indian Startups

Nexus Startup Hub and Digit Tie-up to Promote Indian Startups

24 Sep 2020 | 11:59 AM

Nexus Startup Hub and Digit Tie-up to Promote Indian Startups

see more..
Kool-ex Partners With IndoSpace to Build Customized Pharma Distribution Centres, Across the Country

Kool-ex Partners With IndoSpace to Build Customized Pharma Distribution Centres, Across the Country

23 Sep 2020 | 3:55 PM

Kool-ex Partners With IndoSpace to Build Customized Pharma Distribution Centres, Across the Country

see more..
image