PINK SLIPS are always RED!!
Today I was reading an article on
Times of India about PINK SLIP during Lehman Brother’s
collapse in 2008 a real traumatic experience for each one of us especially HR
Leaders, laying of associates due to lack of projects when the financial
industry collapsed globally.
The Article below as pre-read:
I had also mentioned in my
previous blog about Boredom rooms – a new management trend, wherein I had mentioned
that sensitivity and human touch is required while resource rationalization,
hence this blog in continuation of the same.
Firstly, I am surprised that we
call “Separation/laying off of an employee” as PINK slips, whereas the real connotation
is as follows:
PINK- is the Color of Love- there is no love lost, while laying off of an associate.
RED- Is the color of Blood-Danger & Anger- hence RED SLIPS are
ideal tag, while laying of an associate.
As an HR I have had two painful
and traumatic experiences handling such a challenging assignment. In the year
of recession 2001 when the dot com boom- burst and in 2008 when the financial
segment got crushed in sub-prime lending. Handling
such sensitive issue is a psychological trauma, it takes years to heal as a human
being and the guilt is high that you are ruining someone’s career, livelihood
and a home. No one knows what the outcome
would be, how the associate would react- chances are high that it may lead to taking extreme steps in a desperation and disturbing moment by the associate- anything was possible,
but HR had to wear this Hat.
In 2001, while working for a
reputed IT company and the most ethical brand in India, the management had
taken a decision to do a manpower rationalization across the country, as we
were short of projects . We were
primarily a business support partners for the parent company, hence we were
totally dependent on their projects. It
was hard decision for the management which has never done such an exercise
before and is always considered as best employer brand and a life term employment.
I still remember when 56 associates of
my Unit were identified for this exercise and we had to do this on a New Year’s
Eve i.e., 31st December 2001.
I Cannot describe the pain in words- the roll calls started from morning
and it was a pin drop silence in the premises, with anxiety in the midst of associates-
who next?
We had done the Manpower rationalization
on 26 parameters and identified associates who were categorized under these
parameters varying from lack of attendance, non-performance, not willing to
relocate for revenue etc.,
The company paid 3 months’ salary
in lieu of notice cheque on the spot as part of the discussion and counseling.
Objective then was not cost cutting but availability of project to accommodate
all and the bench strength in such companies was always low. I remember people associated with the company
for 7 plus years were also laid off. Sitting through the sessions and talking to
them on the decision was very hard and you needed to be a good listener too in
such circumstances, even though you could do very little on the decision already
taken by the panel.
The company went one step further
of identifying placement consultants who can help such cases and a FAQ’s were
prepared in advance, directories of recruitment consultants were prepared as a handouts,
job scan’s meeting their specific skills were done as a research and companies HR
contacts were shared. As per the company
value’s we tried to be as ethical and value based as possible, while dealing
each cases, personally.
Once a month contact sessions
were organized to handhold with the laid off associates so that they had
opportunities to meet their peers, colleagues and reporting manager’s to take
feedback’s, contacts and references, wherever applicable. The objective of the
exercise was not to penalize an associate but a business decision and this reputed
brand has never done in the history of the company. Withdrawal of Campus offers and deferment
became the norms. I personally had visited 36 campuses in southern region to do
counseling sessions, talking with students in town hall meetings and answering
their questions. Aspirations were nipped in the bud- a painful scene in
colleges where we had made our offers at the Campus.
Later in 2008 recession, I was an
experienced and enlightened HR Leader, handling manpower rationalization. While
working for this company, Lehman, Bear Sterns etc were our clients too. As an
HR we had lots of challenge handling associates working in banking and
insurance projects. Lay off was the norm
due to lack of projects, revenue loss and huge recoverable outstanding from the
banking industry for the IT services provided by us. HR had to do this unholy job for business sustenance
and results.
HR had a challenging time
balancing between associates, business support, business results and other
stakeholders. Revenue was dipping and
overheads were increasing especially salary overheads for any organization is
40-50%, hence we had to focus primarily on this area for cost reduction.The bench was growing and
client’s requirements were few, hence all could not be accommodated. Each of the bench resources were given 3
interview opportunities with clients based on the skills and openings, where
their profiles suited, before counseling them for Separation.
The notice periods were mandatory
as part of the appointment clause, hence high level of sensitivity and human
touch was involved while separation. If
an employee resigned on own, early releases were considered to avoid salary
leakage with short knowledge transition time, so that two people do not work on
the same project as the billing
opportunity was for one and also to ensure project profitability did not
impact. We had saved a salary savings of 3.62 crores for the company,
through such interventions at the Unit.
Informal meetings and frequent hand holding meetings were conducted with bench resources, sharing with them the
real scenario, providing opportunity for internal training, to look for
opportunities outside, horizontal movements within the company in other
locations, to go on loss of pay for their continuity of employment or on
Sabbatical/avail their accumulated leave with an assurance of re-entry when the
situation improves, were some other measures, taken.
My HR team were given
task to handhold bench resources personally, speak to them informally without
impacting their psyche or organizational image, reasoning it out with them that
if certain decisions are likely to be taken then it is a business decision and
not a personal one. Educating and awareness by HR informally was part of the process,
so that associates understood, to stand with the organization on decisions if
any taken against them- which they have built over the years, through their
contributions.
It was an unfortunate moment for
HR and an experience that will never be cherished by me. As HR we always are on
the job of tapping talents and developing associates to achieve the organizational
goals. Sometimes HR is pushed to work
for business results balancing between personal, professional core values and
practical situations- hence I always feel that HR makes a great Business
Partner for organizations. HR can handle delicate and sensitive situations as well as celebrations/
success stories with evenness. HR
profession requires- “Situational Leadership”, a man Friday for Organizations.
In the current scenario in India,
I pray that no company takes such a decision to lay off associates and pray
that no HR Leader goes through this psyche disturbing process to implement. Even
if it has to be done for business, a human touch and empathy is provided in
listening to those associates who are identified but had joined the company to
build their career with dreams. We owe this to our associates who have
contributed in building the organization, when things were Rosy and Pink of health!
.
