Take salary revisions in your stride (Source: HBL)

Take salary revisions in your stride

It doesn’t pay to think negatively, but if your boss plans to trim your pay and perks, be ready to take changes on the chin, this way.

‘Broking houses resort to layoffs, pay cuts’, ‘Kingfisher cuts pay’, ‘Jet wants employees to take voluntary pay cut’, ‘Corus to pay half salaries to 1000 workers in UK’— lay-off and salary cut news is now heard more often than ever earlier.
But if you thought such a thing could never happen to you, sample this. 143 companies of the total 512 that posted their results for the December quarter have shown over a 5 per cent dip in their staff cost sequentially.
Even in well-known companies such as Zee Entertainment, the salary has dipped by 71 per cent, Reliance Capital (43 per cent), Apollo Tyres (16 per cent) and United Breweries (14 per cent).
Like it or not, retrenchments and pay-scale revisions are happening across industries. In such dicey times, it is imperative that you have a back-up plan — a plan ‘B’ that can help you sail through the tough times, if, God forbid, you happen to find yourself in the middle of the financial crisis. Here are a few suggestions that can help.When mobile reimbursement is cut
Tough times may call for tough measures, but one of the easiest and the first things that companies may resort to in these times is cutting down on employees’ mobile reimbursements. So, how can you bring down your telephone bills, especially when you have to pay from your pockets? Well, for starters, by being mindful of the numbers of minutes you talk.
Try to talk only for the free minutes offered by the service provider. Pen down the numbers you call up frequently and if possible try to get concessional tariffs for the same. Better still, enquire if closed user group (CUG) facility can be activated between these numbers. Note that there are schemes that offer unlimited CUG facilities now. You can also consider moving to pre-paid mobile connections, which can help you set a limit to your mobile spending.
But remember to do a complete homework on the tariff rates of various service providers before you opt for a specific plan. Select only the one that best fits your needs and bill.When bonus is deferred
Try not to commit the bonus money that has not yet come on hand towards expenses that can be postponed or better still avoided — especially so, when you swipe your credit card on hopes that you will pay up from the bonus you get.
At a time when companies are tightening their belts, the possibility that your much-coveted bonus can be deferred looms large. Not paying up credit card bills on time may not only attract exorbitant interest rates but can also make your bank reduce your credit limit. Another word of caution — if you thought you can convert the outstanding on your card to a personal loan; remember you need to have a good credit history for that.
Your bank will give you the loan at a competitive rate only if you have one. If, however, for some reason you do not have a credible credit record, you can consider trying your luck with other banks.
But remember that converting your dues to a loan requires you to shell out a fixed amount towards the interest payment every month; you can no longer get away with paying just the minimum amount due every month. When conveyance allowance is cut
Don’t lose heart if and when your company cuts down on your conveyance expenses, instead explore other means of transport. Try to work out other options such as car pooling with your colleagues or neighbours who take the same route.
To share the burden equally, you can even share your fuel costs. Another option can be to take the public transport. Some bigger cities also have private mass transport options. Explore if your city has it. Cover your needs
Let’s face it — all of us have recurring expenditures regardless of what we earn. So, start saving for the rainy day now. Have at least three months’ salary as a buffer in your account to help you tide over difficult times. You can opt for an insurance cover on bigger commitments such as home loans.
The insurance cover can help you take care of the EMIs for at least a few months if you happen to lose your job. But while taking the insurance cover, remember to specify this need clearly to the insurer as there are several variants in the householders’ insurance cover and some don’t cover loss of employment on layoff.
Also, if you have all along had your employer cover up your medical expenses, choosing a health policy now may also be of help. And, do not commit yourself towards large premium payments when you are selecting the policy.
Take just the basic cover, with no additional frills and that which best addresses your specific needs.Look for extra earnings
If your busy work life left you with no time to pursue hobbies or other interest, now is the time. Hobbies such as painting and stitching can be pursued seriously to earn the extra penny. You can even consider taking up part time jobs- working in super markets, taking tuitions, etc, to bring in that extra moolah. Also, use your free time to read and improve your knowledge and skill set.
Cost pressures can force the management to set high performance standards. Working on improving your skills will help you put in better performance in your current job and may also come in handy in finding a new one. And when on the job, do take conscious efforts to build your network. Remember, references can be of great help at times.