India should have done more to protect jobs: McKinsey official
India should have done more to protect jobs during the pandemic, a senior official at a global consulting firm said on Tuesday.
Alok Kshirsagar, senior partner at McKinsey & Company, said the UK has a very effective job protection program in place through the Wage Protection Initiative, while the US has not also effective because they were not well targeted.
“I think in India, frankly, we should have done more to protect jobs somehow,” Kshirsagar said during a speech at an event organized by the pressure group. of the CII industry.
It can be noted that unemployment had reached record levels during the pandemic in both organized and unorganized sectors. Analysts expect an increase in bad debts from the otherwise resilient retail segment for banking sectors as a result of these setbacks.
Kshirsagar said boards need to build resilience within a company to withstand shocks and added that this could result in upfront investments for the same.
Besides people, the big areas a business needs to invest in include supply chains, distributor relationships or working capital limits, he said, adding that the consulting firm has received many business demands on the cost of such investments, which can create layoffs. also.
” It took a while for the boards to show up and it must be a cost that you can explain to rating agencies, stock analysts and investors as in fact an appropriate cost and interesting because of the resilience it offers and, of course, the risk adjustment. comes back, ”he noted.
Kshirsagar said it is the strategy implemented during the pandemic and initiatives such as partnerships forged that distinguish a more successful company from an average company, and stressed that the stress caused by the pandemic is not sectoral.
A study by the consulting firm found that companies in all industries that are in the top quartile in terms of performance, and also command a higher course of action, are the ones that have taken decisive action, a- he said, noting that the same is visible in industries such as banking, IT services and automotive.
Meanwhile, speaking at the same event, Allcargo Logistics Chairman and CEO Shashi Kiran Shetty said his company faced many challenges during the pandemic, including a cyberattack.
Allcargo got out of the hardships without paying the ransom, he said, adding that his staff had to put in a lot of effort to get by.
He said the company, which also operates container freight stations, helped ease port congestion by bringing containers to CFS, but the government did not allow it to charge customers for keeping cargo in. the CFS.
Meanwhile, Rupen Jhaveri, managing director of private equity major KKR, said the primary goal of issuers after last year’s lockdowns was to reduce allocated working capital limits.
He said the fund had experience with the global financial crisis in 2008, which led him to advise issuers to be excess on cash.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)