Das ka Dum with Dr Bhaskar Das: Given that salaries are a sub-10% component of a print entity’s P&L, do you think it’s fair to effect pay cut?

27 Apr,2020

Bhaskar DasNow we knew we were putting him in a spot with this question, but that’s a sentiment which many people have. Without further ado, Dr Bhaskar Das in the April 27 edition of Das Ka Dum.. Read on…

 

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Q. Given that salaries are a sub-10% component of a print entity’s P&L, do you think it’s fair to effect pay cut?

 

A. At a meta level, the kaleidoscope of life consists of a motley combination of fair or unfairness, depending on an individual’s internal narrative. Am I avoiding answering the micro-question posed by you? Not really. But before answering the micro, it’s important to have a  macro perspective of life and its impact on individuals. For example, what is supposedly unfair to an individual, is fair to a business entity. An organisation has to work towards a  business process continuity (BPC) and protect the interests of the employees at large. The rightsizing/ compensation optimisation process in a VUCA time would always be indicted as unfair. Hence, there is no black-and-white answer to this question. If you go into the morality of the decision, there would always be an emotional bloodshed, as any decision involving austerity measures has psychosomatic repercussions on individuals that goes beyond the logic of business pragmatism. Don’t forget that austerity is always better than oblivion, when it comes to BPC.

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