How Companies Reacted to Workforce During Lockdown

Insights from a Nationwide Survey on Workforce Sentiment During Crisis

A Data-Driven Look at Organizational Decisions in Crisis

Why This Report Matters

The COVID-19 lockdown in India, which began on March 25, 2020, triggered an unprecedented wave of organizational decisions affecting employees across sectors. The HRhelpdesk® report, based on 1336 unique company responses, offers a rare and insightful look into how companies managed their workforce during this period—not in terms of future plans, but immediate actions taken to survive and adapt.

This report is essential for HR leaders, business heads, and policy advocates seeking to understand crisis-time workforce strategies, sectoral trends, and the human impact of financial decisions.

Survey Overview

• Survey Period: May 7 – May 30, 2020
• Total Responses: 1408 (1336 qualified company responses)
• Method: Online public survey
• Scope: Focused on workforce-related decisions during lockdown (not future benefits or increments)

Key Findings

Extreme vs. Moderate Measures

• 58% of companies took extreme measures, including:

• 17% retrenched or terminated employees
• 41% implemented salary, bonus, or variable pay cuts
• 11% placed employees on leave without pay

Sectoral Impact

• Textile, Real Estate, and eCommerce sectors saw the highest incidence of extreme measures.
• Telecom and Insurance sectors were the least impacted, showing resilience in workforce management.
• eCommerce reported the highest retrenchment rates.

Leave Without Pay

• Tourism & Hospitality led in moderate measures, with 30% of companies placing employees on leave without pay.
• Banking and Financial Services showed the least use of moderate measures.

Market Intelligence & Observations

• Multiple Measures: Many companies combined retrenchment, salary cuts, and unpaid leave—often varying by role, department, or location.
• Salary Cuts:
  • Staff: Up to 15%
  • Middle Management: 20–30%
  • Senior Management: 30–50%
  • Some companies applied flat cuts of 30–50% across all levels.
• Variable Pay: Largely withheld across sectors.
• Other Actions:
  • Offer withdrawals and hiring freezes
  • Resignation revocations
  • Increments deferred (despite April being the usual cycle)
  • Instances of zero salary reported

Why Download the Full Report?

This public synopsis offers a snapshot of organizational behavior during crisis. The full report provides:

• Sector-wise breakdowns of workforce decisions
• Comparative analysis of extreme vs. moderate measures
• Insights into salary restructuring and HR strategy
• Real-world data to guide future crisis planning and employee engagement

Download Report