Twelve months can sometimes seem so far apart! This time last year we were in the middle of what was being feared as the most devastating global recession since the great depression.
 

Some of the most respected names sank into oblivion, institutional frameworks exposed their own gaping inadequacies and millions were rendered without job and hope. India too saw its share of sorrow as many export-oriented enterprises, travel, tourism and hospitality companies, real estate and construction businesses and indeed many other sectors faced a virtual shutdown and thousands of employees lost their jobs. A wise leadership, strong institutional framework, large domestic market and various other factors somewhat softened the blow for us – but that is another matter for another forum.

 

This year brings quite a different, indeed opposite message! Industrial production is back on rail, projects on hold are being renewed and employment is back on track. A remarkable change indeed! But are there any lessons to be drawn from the year of adversity for those affected most by the downturn - both employers and employees? The cuts in jobs, bonuses, even salaries, hiring freezes and various other belt tightening measures were not a new phenomenon; nor can these be wished away for all time to come. In this light it appears to be wise to analyse such a scenario and summarise the possible learning in order that we are better equipped to deal with such eventualities in future.

 

From the employees' perspective, the most important learning appears to be stability in employment. Those who remained engaged with and committed to their employers over longer periods of time had far better odds in favour of their retention during the crisis. Old fashioned “loyalty” saw itself being rewarded against the more fashionable “mercenary” employment which makes employees jump from one employment to another for merely pecuniary advantage or the more elusive “better prospects”!
 

Crises breed insecurities all round and employers are no exceptions. Most among them feel secure in the company of their older employees who have been tried and tested for their personal qualities as well as for their professional skills, through the thick and thin of the enterprise's journey over the years. Such employees have the advantages of knowing their company's products, markets and customers well; more importantly, they have the unbeatable advantages of having shared their company's vision and mission over the years and internalizing its values and culture and eventually adding to their own goodwill.

Their responses to the crisis are therefore instinctively aligned with those of the employer, doubly sealed with an invisible bond and covenant between them to face the crisis together and see “our very own” enterprise through it successfully. Integrity, sincerity, patience, perseverance, team spirit, camaraderie, adaptability, flexibility, maturity and understanding would be the usual hallmark of such employees. The learning for employers too may well be that it would be wise to nurture employees who choose to make a career with the company over longer periods of time and provide all avenues and opportunities to such employees to grow and prosper with it rather than adopt the short term “hire and fire” approach which will only promote a mercenary culture over the years.