Business Wire India
- Government should pay employees PF and ESI for the month of March, April and May
- To provide support to the industries by providing Rebate in taxes, reduce interest percentage, provide employees welfare activities, make sure utilities are available at controlled cost.
- Government should pay 50% of Employee cost for MSME with turnover less than 50cr for shutdown period and 25% for a period of 3 to 6 months beyond shutdown till business conditions improve
- Deposit of Rs 15 lakhs to each family as promised by PM earlier or some of amount to combat next 6 months. Smaller companies need access to easy loans from banks and NBFCs to rebuild their businesses
- Release some Unemployment Allowance especially those who are jobless and who were earning less than Rs. 15,000/- per month
- IT & ITES Product &Services: 45%
- Manufacturing & Capital Intensive and Allied Industries: 40%
- Modern Retail/Online & Other Businesses: 15%
- Employees Strength included 21% (105 Companies) with 500+ people, 16% (80 Companies) with 51-100 people while 40% (200 Companies) for less than 50 people.
- For 54% of the Participating Companies, Work from Home seemed a possibility though some faced challenges of productivity due to connectivity issues & for smaller firms Data Security was one of the major concerns.
- Was WFH (Work From Home) a Success: Out of 270 Companies, 159 Companies implemented WFH 100% immediately, 57 Companies could manage 70% and about 57 Companies were able to execute less than 50% which resulted in adding stress on Business Continuity due to Reduced Revenues & Unsatisfied Clients.
- Lockdown impacted especially the Startups, SME’s in India with an impact of 60% to 90% for 350 Companies on day 1 & for significant 110 Companies the pandemic affected 100% for organisations of more than 500 people
- 100 Companies accounting 22% of survey responded the Business Impact is Upwards of 30% up to 60%
- 17% Companies did not pay the Senior Management Salaries at all with 8% Middle Management not receiving salaries & with 4% people receiving up to 30% Salary, 8% people receiving up to 50% Salary, 9% people receiving up to 75% Salary
- 77% of Employees received salary in full with 25% of reduction in March Month salary for 9% & Rest paid in full with 24% Companies stating April to May No Pay/Can’t pay
- More than 50% of paid companies reduced from 47% (No. of Companies) to 34.34% (No. of Companies) for the month of May assuming no stimulus package from Govt.
- Considering the solutions in this Pandemic, 23% (120-Companies) Considering for Reducing Salaries & Staff, another 12% (95 Companies) to layoff/Terminate people, 24% to reduce some & of the salaries & another 29% to maintain the Status Quo.
- More Actionable ideas include More people in Sales & focus on Revenue, Reduce cost on Travel, Vehicles, Rent, Engagement Activities, Loaning people to other Cos, WFH continuity for some & Onsite called back to Offshore.
- Definitive Solutions by Business includes 115 Companies reporting No Further Increments, No new Hiring, Focus on more responsibilities on existing staff.
- 130 Companies to Increase No. of Hours & Adjustment of Leaves & Leave without Pay, While Others to look at GIG Workers, New Business Models, Build New products, Improved Automation.
- SME’s when asked whom they approach for advice in difficult times, 55% accounted for from well-wishers coupled with their own Decision making. 29% to go to the Specialist Advisory with the Government Advisory for less than 12%
- On Govt’s Advice for paid leaves for Employees during lockdown, 72% CEO feels not Appropriate, only 28% mentioned as appropriate.
Source: Businesswire