Indian corporates have virtually stopped fresh recruitments to cut costs in the wake of global credit crunch,says a study by industry body Assocham.
Out of 150 Human Resource professionals interviewed,90 per cent said that “there is a virtual ban on fresh recruitments in the private sector as attrition rate has almost subsided in all sectors of economy.”
The study said that as the global slowdown is getting deeper,HR professionals are under severe pressure for working out innovative ways and means to cut unnecessary organisational frills and reduce fringe benefits such as bonus and other allowances,besides curtailment in administrative costs.
In order to avoid layoffs,HR professionals have advised managements to cut wages in the range of 10-15 per cent at middle and senior-middle levels and 25-35 per cent at senior levels,it said.
“Efforts are being put in the direction that only 5-7 per cent wage cuts are being recommended for lower-level employees,” it said,adding that the focus of firms is more towards cutting administrative costs such as optimum use of stationery,conveyance and reduced electricity consumption.