do you think firing employees in IT is fair ?

Personally I don't think firing an employee is fair.You are losing a resource which you have trained and youan't get easily a resource as qualified.So companies must think about how to bring in cost reductions without touching the employees.Firing is one of the worst methods of reducing cost.This is also going to spoil the brand name of the company in the market.I agree that employee benefits make 60% of the cost to the company but eliminating some employees should not be the way forward.Probably companies can reduce the salaries of the employees without firing them.They can also reduce the benefits or freebees enjoyed by the employees.This will inturn create a better
 
I feel if the company is suffering pretty badly, its ok to do that. coz if the company is not in a position to afford you, then its better than getting liquidated.
 
i think itz fairr... coz/ to achieve cmpnyzzz goal is the main motive behind ny buzz..
n if they have to fire the pppl...thrshouldnt b ny issue
:P
 
No I do not think that firing is solution , rather we should motivate employees to work more aggresively, dedicatedly in cost competitive way. Temporarily cuts in perks and salary is acceptable, but mgmt. must show and take confidence of all the employees in this bad patch.
 
well, Depending on the economic crises running out curently, there are various factors whic makes companies terminate their employees.

Some of the reasons could be

no new projects comming in hand and the cost of salaries increase, naturally rendering the company to lose.

Company might have invested into international business and due to the current running crises the money is blocked, concerning the business cycle.

These all reasons forces a company to cut its cost and hense forces itself to terminate employees.

Thank you

Guyton Lobo
 
My opinion in this issue is not judgmental. But its a fact that IT companies are taking the hit for the recession in US/UK markets. Like every other industry , IT companies also have to protect and sustain their investments and infrastructure and with out new clients/projects how do they ensure this?.
If you see in another perspective , its only IT sector in India that i suppose is affected so badly.
Its a horrific scenario in US/UK job markets, every other day we hear hundreds and thousands losing there jobs in every sector of the industry, today if its Vauxhall and ford ..then yesterday it was Lehman Bro's ,Northern rock,...and tomorrow it may be ..suzuki, honda...
It makes the pitch really difficult for a newbie, because of the availability of hundreds of experienced hands .
so my suggestion to the issue of firing employees ,even though some may say its unfair then again from a different angle it can be justified, is that apart from using the last option of ''firing'' in management rule book , why can't they think something like bringing in the concept of cost effective procedures and operations of lean management and making the excess pool of employees sabbatical with half the yearly pay,there by making every one happy..!!
 
frnzz4evrr said:
Personally I don't think firing an employee is fair.You are losing a resource which you have trained and youan't get easily a resource as qualified.So companies must think about how to bring in cost reductions without touching the employees.Firing is one of the worst methods of reducing cost.This is also going to spoil the brand name of the company in the market.I agree that employee benefits make 60% of the cost to the company but eliminating some employees should not be the way forward.Probably companies can reduce the salaries of the employees without firing them.They can also reduce the benefits or freebees enjoyed by the employees.This will inturn create a better
Click to expand...
I'm wondering what is wrong with lay-offs. Does it have to be to the extreme of firing the employee's?
As business people we are nothing without our business, so wouldn't that be a better business decision?
 
nnickles66 said:
I'm wondering what is wrong with lay-offs. Does it have to be to the extreme of firing the employee's?
As business people we are nothing without our business, so wouldn't that be a better business decision?
Click to expand...

layoffs is another form of forced redundancy, in either case 'excess pool ' of employees has to go without anything/job.
I don't remember exactly but i have read somewhere for every business their biggest assets are its people.
How about , taking a decision by which both sides are happy..as management our aim is cut cost and get maximum for every penny spent, At the same time management has got responsibilities towards its employees also.
so, why can't cut the production rate to 25% or below that of the normal and put working hours in rationed rotas for employees, so that they don't lose jobs.
Secondly, why can't the management think of some marketing plans suited just for these recession period, like focusing more on home grounds rather than international.
 
you need to learn something from BPO workers on how to change jobs overnight and try to make it a habit when required,there are still enough jobs in & around your backyard. and
firms should hire some fund managers to manage their funds when it is accumulated and not to follow footprints of big cos like GM ,FORD who waste money on party , bonuses for their employees without any reason .
 
firing employees at the time of recession according to me is the most unethical act of any management. a recession creates a financial crunch in the economy. firing employess would result in decreased income and a reduced purchasing power. this would in turn worsen the financial crisis creating reduced demand for commodities and services. Most of the managements fail to see this big piture and sack employees to save their current financial situation.
 
Your business could well be one of the many that has recently deferred your entire planned cap-ex for the coming year. At this point you are provisioning for survival – not growth. The next year will be all about doing ‘less for (and with) less’.

Your suppliers are also facing tough times – many are facing seriously deteriorated market conditions. As a result – both from your perspective and from theirs – yesterday’s contracts are no longer valid. In today’s environment cash is king and your spend is golden.

It sounds dire, but it forces employees to terminate.

Again want to make a note that on this crises the financial sectors are hit badly, and the clients for indian IT Companies are most of them from finance domain. hence though there is interrelation among domains, the other sectors need not have to follow the rat race of terminating employees. as a fact the salaris of IT Employees in India are fair, they are no longer a cost advantage to US and other similar countries, so as why will a county outsource their projects to india, where india's core competiency is economic labour and considering this situition and recession, how when countries no longer prolong to give enough projects, the indian IT Companies can survive keeping their employees for free and no work?
 
YES...Indeed.

The non-performers need to be weeded out. Its high time coz no company can survive with armies of non-performers.

However, the top performers and the learners should be provided with challenging tasks that can help them increase their portfolio of skillsets.

:SugarwareZ-180:
 
Firing employees is not a good move made by the IT firms..........It firms should and must take care of their empoyees in both bad and good time
 
we can't blame anybody here... be it the employer or the employee.... though it affects the job security of the employees n may affect their loyalty towards the company, the immediate employer can explain the isses and assure that the employee will be hired back wen the IT company revives. Meanwhile the employee can be guided in finding new similar kind of job...
 
Yes, firing an employee is not the right way to bring down cost. As an employee of major IT firm i can very well see lot of points which can help in reducing admin cost. One of them is "Electric cost", significant amount can be saved by requesting employees to shut off there PC's before they leave.
This would save cost to the company and power to nation.
Probably that would help them to hire more then firing more.
 
Firing of employees is not correct.
In employers point of view, being a MNC n listed on various stock exchanges they are under pressure show profits to the stakeholders and in present environment of world economic recession, company's are finding it difficult to get projects. So, easy n simple way to show good balance sheet is to reduce the manpower.

In Employees point of view, Getting removed from the company they have worked for years is bitter to swallow and also the burden of maintaining families without job for sometime is quite painful.Everything seems to negative when the person is removed suddenly without stating strong reason.

Regards,
KIRAN
"Never take success to Head n Failure to Heart"
 
it is not at all fair to fire employees in IT sector. But this is a competetive world & we need to understand that this ups & downs will continue to be there either in the form of economic depression or any thing else. If see the brighter side of this is that now employees will work more hard so that their company will support them even in the time of crisis. Like if companies give target to their employees & give them deadlines, it will benefit the company as well as the employee
 
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