Slowdown forces cos to put hiring plans on hold

MUMBAI: Recruitments by companies have come to a virtual halt due to the global financial turmoil, said HR managers participating in the annual national human resources conference organised by SIES College of Management Studies (SIESCOMS).

Karthik Narendra, an HR manager at the country���s largest engineering firm Larsen & Toubro, said: ���We are only recruiting in our power business since it is an emerging sector. Recruitments for all other businesses have stopped. We are engaged in more internal reshuffling to try and promote talent in-house.���

Consumer goods company Voltas has also halted its recruitments plans. ���The services sector has been hit badly by the recent meltdown. We have stopped hiring, but are engaged in training the talent that we already have,��� said a senior official at Voltas.

High attrition rates, a problem that was prevalent across sectors, is no longer a serious issue for HR managers. With many companies laying off people to cut costs, those who haven���t been given the pink slips are holding on to their jobs.

Ispat Industries, which was hit badly in the recent crisis, is fine-tuning its operations and is trying to cut costs. Said Ispat Industries HR director BR Singh: ���We used to hire trainees every year from campuses, but we have stopped it this time. Instead, we are focusing on driving and motivating our current workforce. Earlier, with many new plants starting, retention was an issue, but not any more.���

Johnson & Johnson, one of the largest healthcare companies in the world, hasn���t been hit as much, according to Vikas Shirodkar, Asia-Pacific regional head for labour and employee relations. He said attrition will continue because people want better salaries despite the market situation.





���We are trying to cut discretionary expenditure like travel and conferences. Unlike other companies which will not be hiring this year, we will continue to hire 20-25 students from the various IIMs and a similar number from foreign universities.���

TV Rao, a management consultant, said: ���Instead of halting recruitment and firing people, companies can look at this as a time to indulge in more corporate social responsibility. Also, if they lay out the problems to the employees and ask for suggestions, it will generate goodwill and loyalty. Employees might also be willing to take a temporary pay cut rather than face losing their job.���