Increased Bench Strength. An Asset or a Liability?
During the Pre Covid market scenario, bench strength was a strong factor for enterprise clients to choose their preferred delivery partners to execute their projects in the required time frames. Typically firms maintain ~7% as its bench strength.
Once Covid hit, the entire market changed in a way contracts and Just in Time hiring were the best cost effective methods to sustain the business.
As businesses were struggling to survive, massive projects came to a halt and payments were deferred until further notice. This increased the bench strength in most companies and they were struggling to stay afloat as the revenue inflow was severely impacted
This has resulted in an aggressive competitive environment and the need for greater agility from automation. Thus companies are resorting to workforce reductions to soften the impact from this pandemic economy.
If employees want to stay out of the liability scanner, the best way is to find avenues where they can translate financial impact from their work. When leads can validate the resource contributing to revenue inflow, the question of layoffs will never be there.
The new normal is for employees to reskill & upskill in all ways possible to stay relevant and afloat