With COVID-19 coming into the picture, the Indian economy is going through a major slowdown, which was evident over the recent quarters even before the crisis struck. With all these problems hitting the world of work from multiple directions, companies are finding it difficult to sustain in this environment.
Coronavirus has disrupted the demand and supply chain across the country and this disruption can be seen in multiple industries. This has resulted in the decline of revenue for companies, forcing them to take tough decisions such as cutting down the salaries, giving pink slips to employees and opting for other cost-cutting measures.
PwC recently announced, all promotions, increments, and bonuses to be deferred and all hiring to be frozen.
While the salaries for March will be paid on time, calls will be taken on April salaries depending on the company’s cash position.
Slowing economic growth and now COVID19 seems to have taken a big toll on the hiring and retention of professionals. With fewer companies recruiting chartered accountants, company secretaries and other professionals, professionals are currently facing the heat of supply-demand disparity, with too many of them eyeing for the same cake.
According to the data, given by ICAI in Campus Placement Drive of Sep-Oct, 2019. Out of 6491 fresh CA who appeared for the interview, only 2035 were able to get campus placed. With so many Professional unemployed and big audit firms announcing hiring bans and cost-cutting, this is definitely not a piece of good news for the professionals.
As the government trying to help companies amid this complete lockdown by extending the due dates of statutory compliances, accounting firms are not able to give enough work to their current employees. Restriction on traveling and work from home is another challenge faced by these firms as it has massively impacted the audit work and finalization of statutory reports.
If this scenario continues and Professionals are unable to work on client sites and clients not providing sensitive information on remote sites, things are going to get further delayed, hampering the productivity of current employees and also reducing hiring requirements of new employees. This Degrading economy has also made it difficult, for these firms to find new work. Prominent figures from big auditing and accounting firm have reported that Firms will find it difficult to pay the current workforce as they will face delay in payments from clients, as most of the money of these companies are stuck in their working capital. Hence, delayed promotions, No increments, and No hiring.
As Employment of Chartered Accountants & other professionals is directly linked to the economy, professionals will now have to sit back and wait for the economy to bounce back.
Fresh graduates expecting lengthy training and high salary will now have to forego this dream. They can also expect additional competition from the lateral and experienced people who will now be looking for new jobs as companies may now start firing amid these difficult times. This is sheer job trauma staring at us in the near future.