News: With pay cuts and job loss, Coronavirus pandemic might set back your career by 3 years or more!-07-05-2020

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Updated On - May 7, 2020

With pay cuts and job loss, Coronavirus pandemic might set back your career by 3 years or more!

01/6Coronavirus pandemic might set back your career by 3 years or more!

Among the plethora of health risks that the coronavirus has exposed us to, our career too is at a very vulnerable state. As per recent data, unemployment in the US has gone up from 3.5% to 15% since the pandemic started and the country was under lockdown. The rate of unemployment has since been increasing. In India too, many people across industries were subjected to salary cut ranging anywhere from 5% to 60% and more. And a few unfortunate ones even lost their jobs.

02/6Media and IT employees fear the worst in India

As per a Linkedin survey, "More than two in five media professionals said their companies will fare worse in the next six months, exhibiting a bleak outlook towards the short-term future. One in four manufacturing professionals and more than one in five IT professionals felt the same." The overall findings showed that one in three Indians have reported a decrease in their personal incomes, whereas 48 per cent of active job seekers and 43 per cent of full-time professionals anticipate fewer job openings in the next two weeks, stated a report by IANS.

03/6There was been salary cut across industries

While announcing the lockdown in March, Prime Minister Narendra Modi had requested employers to not cut salaries of their employees and also forbade them from sacking employees. Unfortunately, the Prime Minister's request had fallen on deaf ears and there had been unprecedented incidents of salary cuts ranging from 5% to 60% and above. What's even more surprising is many organisations are doing that without even formally informing the employees through emails or letters so that their notorious actions do not come under the radar. Some media organisations had even asked their employees to go on indefinite leave without pay and a well-known hotel chain had offered employees a chance to opt for voluntary retirement from service with just a month's pay!

04/6​How the situation has set back employees career by 3 years and more

It came like a bolt from the blue when Nimisha Sindhu (name changed) got a call from her manager one fine afternoon. "My manager called and informed that an amount of Rs. 9,560 will be deducted from my salary until the company recovers. Plus, our yearly bonus, which was for last year, will be delayed and there will be no increment and all. She also told me curtly that I am lucky it was just a salary cut and not a job loss. I stay in a rented house and if that kind of amount is deducted, I will be living hand to mouth. And I plan my entire year's investment around the yearly bonus, which is a part of my CTC. Unfortunately., I work in a sector (she requested not to reveal it) where the workload had increased during the lockdown and unlike others, we are working from home round the clock," said Nimisha.

05/6​Huge pay cut is more than just loss of money

There are thousands like Nimisha who had to take a huge pay cut. Given the fact that increments and appraisals had been stalled, people would be working with a pay that they were perhaps drawing three years back or more. There are also people who had to let go of more than 60% of their salary. Even if the situation reverses after the pandemic is over, employees would have to negotiate their pay package from a very low amount in case they decide to change their job or career.

06/6Word of advice

Since the economic condition is very unstable, it would be wise to take some precautionary measures. First and foremost, try avoiding unnecessary expenses and don't spend money on anything you do not need. Also, refrain from making risky investments and put your money in a place you know is safe and there is no risk of suffering a loss like in the case of shares and mutual funds. This is the time act financially wise.