Area of focus today: Human Resources
Context:
Various organizations have already started cutting salaries and laying off employees in order to ensure profitability. Businesses resorting to such measures are not a new phenomenon. It is neither new that they start correcting the salaries and even hire new employees, although they may have lost their experienced and would need to reinvest in the training process, when things start looking better.
Current scenario
The larger organizations will do whatever they can to sail through and the very small ones particularly the bootstrapped may postpone certain decisions and still save some cash. But the big impact would be felt by those who have been there for a little while and have the potential to scale up. They will need manpower and other support, which they won’t be able to afford currently.
Opportunities
Leaderpreneur, a program that brings the large legacy companies and meaningful medium-scale start-ups face to face in a long term and purpose-oriented relationship, unlike the transactional type of hackathons that exists currently.
- Large legacy companies to pick certain percentage of their talent pool which could consist of people they want to retain at any cost and perhaps all of those who they would have wanted to retain/not cut salaries of, had it not been for the current impact.
- This talent pool/certain part of their time is on offer to the cash strapped start-ups. The start-ups get selected based on various parameters; average employee age, number of current employees, vision for the next 10 years, past track record and complimentary products/services.
- The offer could range for a period between 3 months to 1 year.
- The companies pay the employees’ full salary and all other costs. Human resources stay protected.
- The start-ups offer companies equity based on the cost incurred by the companies.
- Deal to be structured in different ways depending on the duration of the services offered and future commitment from the companies.
- The companies retain the talent which it otherwise would have had to let go.
- The companies create a good future asset for the cost incurred.
- The companies have successfully reskilled their managers and they return with very different perspectives.
- The start-ups get talent that it could never have thought of.
- The start-ups’ business moves ahead unhindered.
- The start-ups would be able to protect its current employees, even if it means deferred salaries.
- The start-ups get board level representation and advices from large legacy companies.
- Y&A Transformation can help, if needed, to make this a reality.
