Several corporates expect it will take over 16 months to achieve economic normalcy in India, with Covid-19 dashing hopes of an earlier recovery. Global recession, health crisis, bleak economic outlook and social unrest are some of the top corporate concerns, according to new survey findings.
While businesses across sectors are taking major hits in the first quarter of 2020 due to the lockdown, a whitepaper from TRA Research, a consumer insights and brand analytics company, showed operational expenses reduction is the top most priority of corporates (at 69.5 per cent priority), while capital expenditure reduction is the second highest priority at 65.5 per cent.
Charting the priority of corporates, the study showed manpower cost reduction is the very last thing that corporates are looking at (51.5 per cent priority), while business strategy is at 64.5 per cent priority and company operations at 56.5 per cent priority.
Global recession
The survey was conducted across 16 cities from April 8 to May 4, 2020. Analysis of the data shows that corporates fear the pandemic will push the global economy into a recession, with 66 per cent on the Worry Index, or ‘Highly Worried’ about this issue. However, on India's ability to overcome the health crisis, Corporate India is 'Moderately Worried', at 59 per cent on the Worry Index, due to the possible healthcare system overload.
TRA’s Coping Index and Worry Index have tracked the enormous stress felt by different levels of management. The survey revealed the Coping-Worry gap among Upper Management was the highest, at 32 per cent.
The study noted that that though upper management had too much on its plate, it had to present a show of strength externally despite its personal fears and anxieties. This could have brought on the high tension, it said.
Unsung hero
The Middle Management group is the unsung hero of the current crisis, according to the study.
While the top management is busy in emergency meetings and reassuring panic-stricken clients, investors and employees, the middle management stands as the intermediate between the top and the lower management, getting the work done.
The focus of middle management in creating an effective working environment, administering day-to-day routines and managing external relationships, has kept its Coping-Worry gap the lowest, at 16 per cent.
For lower management, the study noted this is a calamitous time both personally and professionally. Grappled with stress, burnout, job insecurity, salary cuts, emotional and psychological trauma, lower management has a 22 per cent Coping-Worry gap.