Entrepreneurs witnessed personal earnings plummet by around 62% , according to a global survey.
The survey was conducted by 720 Transform - a Business and Capability Consulting firm based out of Dubai, Prophecy FZLLC, Middle East, an insights and research firm and India based Insights3D,a Research Analytics company survey covering 400 senior professionals and entrepreneurs.
Two-thirds (66%) of the respondents surveyed were Indian entrepreneurs and business professionals. About a quarter of the respondents fear that India would go into a recession and are making major lifestyle changes to adjust to the sharp downturn unleashed by the global COVID 19 health pandemic.
The findings revealed that one in every five high earning professionals saw 20% cut in their salaries over the past three months.
One in every seven companies are in deep fiscal turmoil with 75% drop in revenues. 30% of companies surveyed will need to undertake drastic measures such as higher levels of rationalisation, sale or merger as they reported over 50% fall in revenues over the last three months. While change is the only constant, an accelerated pace of change is furthered by the need to adapt to the ‘new normal’. The respondents represents a cross section of companies including multinationals, domestic market leaders, medium enterprises and small businesses.
The survey was conducted amongst top tier executives, which focussed on their response actions displayed. A majority of organisations looked at business re-engineering through new revenue lines or by tapping into new geographies. A large number of companies surveyed are either working on new product offerings or are expanding into allied businesses to keep operations afloat.
Commenting on the report, Mr Raja Marur of Prophecy FZLLC, "The surveys were undertaken to understand what short term impact the covid - 19 crisis has had on consumers and how business leaders were planning to take rear guard actions for immediate term. Further, how the organizations are preparing for the post crisis recovery phase. Our belief that a new normal is being envisaged has been validated by the surveys. Further, the impact to organizations varies by scale and level of global integration of their supply chains.”
Besides cost optimisation through manpower reduction, most of these companies are looking out for partnerships and collaborations more than ever before. There is an increasing emphasis, especially among larger enterprises, to adopt technology for managing commerce, fulfilment and process automation.
Deeper reserves and borrowing leverage somewhat insulate large organisations in times of crisis. The key issue is related to the supply chain as more often than not, most are dependent on global supply chains.
The survey has also found that most of the business leaders use their extended networks as sounding boards to navigate challenges rather than seeking guidance from professional forums and consultancies.
Additionally, most leaders foresee a new normal in terms of remote working and decentralization, coupled with process automations and an increased reliance on AI/Analytics. However, these changes are likely to pose challenges in governance structures as also in communication lines and objective performance management.
While an overwhelming number of organizations have seen a drop in their business fortunes, close to 10% reported an upside despite the Covid-19 crisis. Businesses see challenges with regards to demand, liquidity and availability of finance with MSMEs being the hardest hit amongst all.
Is it advisable to ask for a salary raise during the pandemic?
Trending
-
Google Extends Work From Home; Mulls Over 'Flexible Work Week'
-
Ola to Set up First Factory in Tamil Nadu; Create 10,000 jobs
-
Aon to Invest $30 Million and Create 10,000 Apprenticeships by 2030
-
Urban Company Announces Unlimited Mental Health Leave Policy
-
G Suite Rebranded As Google Workspace
-
Tech Mahindra Launches ‘Gift a Career’ Initiative for Upskilling of Youth
-
NASSCOM, Deakin Varsity Offer Courses for IT-BPM Industry Workforce
-
40% Women Prefer Flexible Working Options in Post-COVID World: Survey
-
Ecom Express to Hire 30000 Employees This Festive Season
-
DB Schenker Names Katharina Rath as New CHRO
-
No Layoffs, Salary Cuts to Be Reviewed in January: Vistara CEO
-
Hiring in India climbs up 35% from April-June
-
OYO announces employee wellbeing and work-life-balance initiatives
-
TCS launches return-to-work solution
-
3 out of 4 companies believe they can effectively hire employees virtually: Report
-
Wipro collaborates with Intel to launch digital workspace solution
-
Capgemini to reskill 50,000 employees in India
-
Cognizant ropes in Jan Siegmund as CFO
-
Niyo announces salary hikes, bonuses, ESOPs
-
Vodafone , CGI and NASSCOM Foundation launch digital skills platform
-
Odisha: Bank, postal employees to deliver cash for elderly, differently-abled persons
-
Skill India launches AI-based digital platform for "Skilled Workforce"
-
Hiring activity declines 6.73% in first quarter: Survey
-
NetCom Learning appoints Subir Sinha as Director-HR
-
70% startups impacted by COVID-19 pandemic
-
Omega Healthcare ropes in "Kannan Sugantharaman" as CFO
-
Bajaj Allianz Life ropes in Santanu Banerjee as CHRO
-
Over 70 Percent MSMEs look at cutting jobs to sustain businesses
-
Snapdeal onboards counselling experts to help employees
-
93 Per Cent employees stressed about returning to office post-lockdown
-
Johnson & Johnson India announces family benefits for same gender partners
-
Indian firms turning friendly towards working mothers
-
Welspun India names Rajendra Mehta as new CHRO
-
COVID-19 impact: 61 Per cent Indians suffering from mental health issues during lockdown
-
93 Percent employees stressed about returning to office post-lockdown
-
Wipro partners with NASSCOM to launch Future Skills platform
Human Capital is niche media organisation for HR and Corporate. Our aim is to create an outstanding user experience for all our clients, readers, employers and employees through inspiring, industry-leading content pieces in the form of case studies, analysis, expert reports, authored articles and blogs. We cover topics such as talent acquisition, learning and development, diversity and inclusion, leadership, compensation, recruitment and many more.
Subscribe Now
Comment