Loading ...Businessmen all over the world are going though a tough time. Companies are downsizing staff strength, factories are reducing volume of production and people are getting lesser salaries. If the financial analysts and economists are to be believed, this dark phase is going to take long before it leaves. Everyday, the ‘economy’ pages of the newspapers are publishing news about laying offs in companies taking place in different corners of the world and the readers are being panicked. But what are the ways to survive this financial crunch? Is there any way at all?
The only reason why companies are taking such drastic steps is to curtail costs. Definitely, it sounds cruel, but they are helpless. Without curtailing costs at a significant percentage, companies cannot survive in this phase of global economic meltdown. But the question is, are these decisions helping them in their way of survival? It is easy to say a group of people ‘you are fired’ or ‘put down your papers’. The group of people will loose jobs all right, but as an employer, you might be loosing a very efficient workforce with this decision. What will you do then? If you are not in a condition to recruit people, how will you replace these workers? So it is not a solution. Slashing salary, on the other hand, slashing salary will affect the motivation of workers, so you cannot expect them to give their best in the work. So how will it help you? No way! Therefore, what else can companies do to survive the financial crunch? Well the way is by curtailing extra costs.
Lots of companies across the world have now stopped spending money behind organizing parties. No parties, no dinners, no programs = saving a lot of money. Small business organizations are even controlling use of electricity and telephone. The newspaper industry hit very badly by the economic meltdown. Earning of revenue through advertisements has gone down drastically. So, to survive, many newspaper houses are compromising on the quality of newsprints. Some have even reduced the number of pages. Other industries too are looking for similar options as it has been proved that downsizing of staff strength is not solution to this problem. Of course, reducing the number of workers will save some money for you, but in the long run you cannot survive without strong staff strength.
