Employee - What do I do during recession?

(1)

Employee - What do I do during recession?

(2)

Markets

o We all know that markets have slumped o We read about job-loses in news papers

o People talk about atleast 24 months of recession o Early entrants are not getting jobs

o Companies are closing o Sales are not picking up

o Suddenly cash has evaporated from the market

o Profitability is severely hit

(3)

I am employee

o I need to keep my job o I need to pay EMIs o I have a family to run

o I need to keep working to sustain myself o I need to feel secure

o I need to save a little money for a rainy day

o ….

(4)

Basic Don’ts

o Do not take too much vacation

o Do not ask for promotion. Don’t ask for a salary increase. If you ask, you may soon not have a job. Remember, there are people available with better skills at lower salary levels.

o Do not complain

o Do not waste time gossiping o Don’t resist a transfer

o Don’t resist travel

o Don’t resist a salary cut o Don’t resist extra-work load

o Don’t resist extra time at office if needed

o Don’t change jobs in this market. It is too risky.

(5)

Basic Do’s

o Be punctual to office

o Ensure you pick up new skills

o Ensure you deliver as per deadlines

o Ensure that you contribute to knowledge forums etc o Do something innovative

o Take training programs

o Organize team meeting to improve productivity o Always be engaged & productive

o Work doubly hard and save money for your company

o Remember, your boss is always right and is the best (recession or no recession) o Be cheerful, keep smiling, life goes on 

(6)

Daily Expenses

o Take a stock of your expenses – actually write it down o Tick “Need to have” vs. “Nice to have”

o Knock off all “Nice to have expenses” – Right Now!

o Assuming you didn’t have a job – Plan for cash to survive for 24 months. Apparently, this recession will take atleast 24 months to come out of. Sit on cash!

o Other tips to cut expenses – o Going to malls is expensive o Good restaurants are expensive o Impulsive shopping is expensive o Taking flights is expensive

o Eating out daily is expensive

o Check services which you are not using but have subscribed to

o Going on vacations is expensive

(7)

The big loans

o Home Loan & EMI

o If you own one home and you are living in it and paying EMI, then see if you can partially fore-close it.

o If you have two homes and paying EMI on both –

o See if you can rent the second home – don’t bother about amount of rent.

Rent to get cash flows going. Don’t feel bad that rental is not good enough. Trust me – it will soon be a great feeling to rent.

o If you have enough money, then fore-close a significant part of it. If your interest rate is less than bank FD (which I doubt), then you don’t have to fore-close.

o If you think the property will fetch a decent value, then sell it (though it is

a buyer’s market)

(8)

Do I buy anything now? Do I invest?

o Investing in stock and mutual funds?

o Generate spare money every month – take a Systematic Investment plan (about 15% of your salary) – keep buying at low values for the next 24 months

o Buy an asset – buy a house/apartment/land?

o If you have cash and feel secure, this is a great time to buy. You can negotiate hard with builders/developers. Actually, you can write your own terms on the agreement.

o First preference – Buy Land (always buy small sites, it is easier to dispose.

Else farm land is a great option – big land, low cost)

o Second preference – Buy House + Land (again buy from known developers) o Third preference – Buy apartment (you always wanted to buy that 3-bed/4-

bed apartment from a reputed builder, but could never afford) – now is the

time to ask for free. Some are being sold at ridiculous prices.

(9)

I am looking for a job – what do I do?

o Enroll in a course / training / education as you are searching for a job. It enhances your skills

o Enroll as a trainee anywhere you get an opportunity. Most trainees end-up getting confirmed employment as a build relationships in the company

o Do not have any preferences regarding – City, Salary, Designation, Location, Shift etc. Just take it and gain experience. It is the first step to a long career

o Go through references of people who are already working.

o During job-interviews – the keyword which employers are looking for is “flexibility”

o Agree for “any place/date/time” to take job interviews. If you don’t somebody else will take that interview slot.

o Please improve your communication skills – this one skill fetches jobs!

(10)

Employee - What do I do during recession?