REPORT ON HOW COMPANIES ARE RESPONDING TO THE PANDEMIC IN TERMS OF COSTS REDUCTIONS.
The majority of the companies globally did not expect the situation to turn against them. The spread of novel coronavirus has forced many Asian and Non-Asian companies to revise their plans on how they spend their resources on their business. HR departments encounter utterly new challenges, as their regular tasks need to be fulfilled in totally different conditions.
The following short report is showing an analysis of how SSC/BPO companies are going to reduce costs?
Many analysts globally, given closed services, limited movements, and pulled-up productions, contemplated probable challenges of the BPO industry. According to the brief questionnaire organized by manaHR for 40 BPO/SSC organizations in Poland, 63% of them are planning to reduce their costs and 37% aren’t.
Fig 1
Categorizing, 88% of the survey respondents are planning to reduce their expenditures by revising their recruitment plans. Because companies recruit not only in the response of market demands but also in response to the number of potential customers. Looking at the pandemic one can foretell, there ain’t going to be much abundance.
Fig 2
76% of them will consider revising the event budgets. Companies are less likely to organize events that were intended to enhance employees’ morale and show appreciation. They are interested in halting all the unnecessary sources of substantial costs during the economic slowdown.
Companies sponsor a fortune in organizing training seminars to take care of their team’s development. 72% of the companies have decided to enroll changes to the budget intended for those activities.
Nevertheless, many companies ( 64% ) are planning to change pay increase budgets for their existing employees. Those who qualified for the raise did flinch their eyebrows but in order to guarantee employment for all the current employees, companies are forced to take such a course of action. However, some companies have considered lay-offs and have terminated many employees' tenure.
A change in bonus budgets is considered by only 36% of companies planning to reduce costs. affected as well, though until recently they have been the most sought-after group on the market. Bonuses are related to employee performance. To ensure employees’ loyalty and motivation towards the companies’ objective, companies are unwilling to interfere in this field.
Others include expenditures like office rentals, cleaning services, canteen services, etc. companies, however, are unwilling to cut benefits packages ( healthcare and life insurance), i.e. two issues extremely important for the employees.
Many BPO organizations are planning to control the expenditures in their owns ways, for the time being, the only good solution is to cut costs as much as possible while keeping on providing customers with top quality services. The only thing is certain, though – we will not be able to return to reality as we knew it anytime soon.
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