Presentation….

COVID-19…

It’s impact on the world over

economy and the resulting
repercussions on the Employer-
Employee relationship
The primary consequence of this
pandemic

“Layoffs” which refer to temporary suspension(in some cases

even permanent termination) of employment of an employee(or
a group of employees)
 Layoff Reasons:
(co-related to COVID-19)

 Preserve Cash
 Decrease in Committed Revenues
 Projects going on Hold
 Debtors (receivables) days increasing (hence bad
debts increasing).
 Why Companies always target
their employees?
The Answer Is: To Strengthen the Savings… This is the
most key element to be understood
 We have to start thinking of employees as a “FAMILY”
 In a tight financial situation, we do not reduce our Family
members, instead we try to unite them and enhance
togetherness But,
 When it comes to our Businesses, we immediately think to
reduce the Head Counts, as if they are the only and highest
cost saving factor, right?
 Their contribution towards revenue is forthwith forgotten.

continued….
 continued….

 The reason for this happening is that for us “Heart Count”

is less important than “Head Count”.
 We need to realize that employees also have Head Count (their
family) and fixed expenses – How will they meet it? Where they
stand?
 The employer must acknowledge that it is the blessing of Allah
Almighty that an employer is given the opportunity to hire and serve
their employees.
 But unfortunately, they (employer) believes that that it’s their efforts
and thinking that their respective organizations are profitable and
hence the employees should remain at their disposal – a very
wrong concept.

 Refer example on the following slide…

Number of employees increasing & then
decreasing from Max 15 (in good times) to
Min 2 (in tough times)

10 13 15 6 2

11 12 13 10
 Please Wake Up…

 Employees are the greatest asset, it is through their hard work and
commitment that any company grow and prosper.
 Employer and Employee together is a Team and hence Employees’
welfare should be the topmost priority. [Although, Employees’
Discipline must be maintained at all times]
 HR policies also are usually employer oriented, these policies are fine
tuned to serve the interest of emloyers (example, making the
frequency of availing a particular benefit-such as staff loans once in 5
years , this gives the employer the benefit of reduced outflow).
 Generally, employers are reluctant to introduce retirement benefits –
Provident Fund (PF), Gratuity.
 If we take care of our employees in hard times, in good times they
will definitely take care of their organizations – good deeds/actions
have great influence and hence the rewards in future are even more
than expected..
 Conclusion:
 All discussed/written in the preceding slides underlines that it
is the Mindset which needs to be restructured, one needs to
think differently, adopting a serving attitude in doing business
rather than purely profit-oriented.

 Companies should and can adopt profit earning strategies but

their Only aim must not be to Earn Profits.

 When Profit Earning is Foremost, ethical/moral values are

sacrificed, serving public interest becomes secondary and
ultimately “LayOffs” become evident..