Monday, November 17, 2008

Layoffs

Companies are firing employees across the world. The recession which was considered a minor quake has become on of the biggest to hit the economy in more than two decades. Some are comparing it with the great depression. To avoid cost overruns companies are firing employees. I have a different view on handling manpower during recession. Until and unless you are in deep financial mess, and you cannot survive without firing employees, I would recommend keeping them. Cut costs by reducing salaries, not declaring bonuses, stopping salary hikes etc. I am sure all of them will react more positively when you announce salary reduction, no bonus policy and other cost cutting initiatives than the staff cuts. Also, remember the old adage - a friend in need is a friend indeed. In this difficult time, if the organization keeps its employees, it goes from just a company to a friend to all of them and thus makes them loyal for life (well, ideally speaking).

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