Zero layoff strategy: The secret to Appinventiv’s growth during the 2023 recession

2023 saw one of the biggest layoff trends in the last ten years. Nearly 1059 tech companies, including startups and enterprises, have collectively laid off 2.4 lakh+ professionals globally, with US-based companies ranking at the top. Outside the tech spectrum, over 3 lakh employees have been laid off by non-tech enterprises and startups, amounting to 5.5 lakh in the total number of layoffs worldwide. These stats are enough to demotivate an aspiring IT professional. Amid these unprecedented downsizing companies, a rapidly growing product engineering company, Appinventiv, implemented a strict Zero Layoff practice, which boosted employee morale and helped the business grow during the 2023 recession.

According to its CEO, Saurabh Singh, the company, due to its major clientele being US-based, had forecasted the upcoming recession. All the directors, including Sudeep Srivastava, Prateek Saxena, Peeyush Singh, and Dileep Gupta, analyzed the situation and created a quick plan of action. The team optimized its resource allocation to speed up existing client deliveries to accumulate enough reserves to last the year-long recession in case of extremities.

“Instead of waiting for a rough financial patch to come unannounced, we focused on ramping delivery timelines in the first quarter. We optimized our monetary allocations to ensure unobstructed operations while equipping the management to tackle abrupt challenges. We’ve put enough effort in hiring the best people, most of whom have proven their worth repeatedly, and losing them has never been on the table.,” said Saurabh.

Appinventiv’s management has taken this unorthodox method for the second time in the last 5 years. During the COVID-19 pandemic, the company not only preserved all of its employees but also executed multiple increment cycles. All the employees of Appinventiv were given COVID-relief privileges, which included:

● 50% of the deceased’s monthly salary is sanctioned to a family subject to a minimum cap of INR 40,000 per month for one year.

● INR 10,000 monthly for the education of school/college-going children of the deceased employee for two years.

● Mediclaim coverage for the deceased's family for up to two years.

● Offer of employment to the deceased's dependent/s as per qualification/skill.

While getting deeper into the thought behind this action with Appinventiv’s CEO, Saurabh Singh, we learned a few insights you’ll know as you keep reading.

Zero Layoff: Shielding Employee Well-being

One of the standout strategies that Appinventiv employed was the Zero Layoff strategy, ensuring that 99.5% of its workforce remained secure in their positions throughout the recession. This boosted employee morale and underscored Appinventiv's commitment to one of the critical pillars of its tech enterprise, the humans. The company boosted incentives, bonuses, and variable compensations in multiple departments to reward extraordinary performance.

While others downsized, Appinventiv hired 315 new employees between April and September 2023, and 400 more lined up for onboarding, growing the total team size to 1900+ experts in roles ranging from interns to senior management. From embracing National festivals to celebrating various milestones, the company conducted frequent extravaganzas that kept the employee morale high and the thought of a probable layoff away.

Upskilling Opportunities and Job Security Assurance

Appinventiv made a strategic move to upgrade its capabilities by helping its existing employee base through upskilling opportunities, including training sessions, internal growth programs, and certifications. Technical certifications, along with non-tech training sessions on soft skills and leadership growth, were continuously focused upon. This approach is aimed at providing job security and ensuring that employees are equipped with the skills needed to excel in their roles.

Strengthening Market Positioning

The company grew its revenue from INR 49 Crore in 2020 to INR 144 Crore in 2023 and emerged as one of the leading digital transformation companies in the most prominent markets. Holding this position was one of their priorities, especially during the tougher economic times. The company doubled down on its networking collaborations and placed itself in key international events, including GITEX Dubai and Seamless Saudi Arabia.

Offering Flexibility & Rewarding Efforts

The company serves 35+ industries from 5 excellence centers in multiple countries, but most of its clientele is based in the USA, UAE, UK, and Australia. This reflects why Appinventiv was awarded the Best Place To Work 2023 title by Outlook India.

Appinventiv's response to the 2023 recession was a testament to prioritizing employee well-being and embracing innovative strategies. Their adaptability and resilience not only helped them navigate the economic uncertainty but also allowed them to thrive in the face of adversity.

The team of 1500+ transformation experts kept the organization’s growth trajectory on a positive trend throughout the year and garnered various accolades en route, including (suitable awards for 2023). The company also partnered with the Indian government to organize the G20 International Summit 2023. Appinventiv has demonstrated a strong focus on recruitment, career growth, employee feedback, and development, all while ensuring financial stability and job security for its workforce.