Recession and HRM
HRM in Indigenous and MNCs in the current recession.
Ireland has one of the most globalised economies in the world. One of its main attributes is the prioritising the attraction and retention of FDI through a combination of incentives, particularly low corporation tax and liberalised trade policies. The success of this policy is manifest in the large numbers of MNCs located there and its status as one of the world’s most FDI-intensive economies (Barry, 2007; Rios-Morales and Brennan, 2009). Ireland currently hosts seven of the top 10 global information and communications technologies companies, 15 of the top 25 global medical technology companies, nine of the top 10 global pharmaceutical companies, over 250 global financial institutions and a growing social media and gaming sector. Two particular statistics illustrate the importance of MNCs to Ireland – it has the 5th highest ratio of inward FDI stock to GDP in the OECD and the highest ratio of employment in foreign affiliates in both the manufacturing and services sectors (OECD, 2010).
Both papers show that firms took a very versatile approach to the recession in that they implemented a wide range of HR practices to address its severe effects and many challenges. These practices are analysed under four headings: pay and pensions measures;
Furthermore, the GFC seems to have acted as a catalyst in accelerating a move from defined benefit to defined contribution occupational pension schemes provides some examples of changes to pay and benefits within MNCs: Hollister – changes to defined contribution pension scheme.
Ulster Bank (owned by Royal Bank of Scotland) closed their defined benefit pension scheme to new entrants, as well as freezing pay.
The most recent ten-year agreement “Towards 2016” was concluded in 2006. However, we now find that while a small proportion of employers have paid some element of the Transitional Agreement, a somewhat greater proportion have implemented pay cuts, while the great
Ireland has one of the most globalised economies in the world. One of its main attributes is the prioritising the attraction and retention of FDI through a combination of incentives, particularly low corporation tax and liberalised trade policies. The success of this policy is manifest in the large numbers of MNCs located there and its status as one of the world’s most FDI-intensive economies (Barry, 2007; Rios-Morales and Brennan, 2009). Ireland currently hosts seven of the top 10 global information and communications technologies companies, 15 of the top 25 global medical technology companies, nine of the top 10 global pharmaceutical companies, over 250 global financial institutions and a growing social media and gaming sector. Two particular statistics illustrate the importance of MNCs to Ireland – it has the 5th highest ratio of inward FDI stock to GDP in the OECD and the highest ratio of employment in foreign affiliates in both the manufacturing and services sectors (OECD, 2010).
Both papers show that firms took a very versatile approach to the recession in that they implemented a wide range of HR practices to address its severe effects and many challenges. These practices are analysed under four headings: pay and pensions measures;
Furthermore, the GFC seems to have acted as a catalyst in accelerating a move from defined benefit to defined contribution occupational pension schemes provides some examples of changes to pay and benefits within MNCs: Hollister – changes to defined contribution pension scheme.
Ulster Bank (owned by Royal Bank of Scotland) closed their defined benefit pension scheme to new entrants, as well as freezing pay.
The most recent ten-year agreement “Towards 2016” was concluded in 2006. However, we now find that while a small proportion of employers have paid some element of the Transitional Agreement, a somewhat greater proportion have implemented pay cuts, while the great