Can Corporate America Lift The Economy?
Every business, from very small companies with just one employee to top multinationals with several thousand employees, is suffering. We all are faced with difficult choices and deteriorating economy is forcing us to make every possible decision that can cut down our expenses to some extent. We are doing all this to save our companies from total collapse.
And the most painful decision most of us are making is reducing the workforce. As I wrote in my previous article in our June 2009 Newsletter, the reason most companies do so is that it has been ingrained in our minds that the only way to reduce expenses is to lay off some employees.
Let us look at it from another angle. Every time we, as a business, layoff one employee; we are actually bringing the already dwindling economy, one more notch down. Why? Because now the family of this employee will have to drastically cut down their expenses which means this family will not be buying anything except bare essentials necessary for its survival. We all know the negative impact when consumer spending goes down as gradually it starts impacting every other sector of the economy. And our own businesses will not be immune to this no matter what industry our business is in. This is when I am talking about one employee. You can visualize the multiplier effect of this as nearly half-million people are losing jobs every month across United States.
Can Corporate America lift the economy?
In my opinion, the answer is YES!
The only way to stop the free fall of the economy is to stop the bleeding. If at the national level, we can reduce the number of people losing jobs every month along with some getting re-hired, Corporate America will succeed in lifting the economy.
And only multinationals cannot achieve this by themselves. Small and medium business sector is the backbone of every economy. Collectively, we all can lift the economy. But now the problem is if we decide not to lay-off employees or lay-off fewer than is necessary to survive, how do we cut down our expenses.
Let me illustrate a very small but real-life corporate example. Many years back, I was working with an established company. Gradually company started losing business and executive management of the company started thinking of new ways to reduce expenses. Company Management made an announcement that every employee of the company will have the responsibility to turn off all the lights of his or her office when leaving for the day. And most people did. Every evening, I noticed President of the company walking in every corridor of the building before leaving for the day and turned off lights if someone forgot to do so. Nearly 1000 tube lights and bulbs that used to be ON 24x7 were now turned off for at least 12 hours a day. I later heard that monthly electricity bill for the company was reduced considerably. Very small thing but it did make some difference.
We all can think of certain unnecessary expenses in our companies and try to cut down to some extent; leaving the decision of workforce reduction as the last resort.
If you lay-off one less employee or can hire just one new employee, even if it on a part-time basis, you will be contributing towards the lifting of the economy and will be doing a service to the country. With millions of small and medium businesses, multiplier impact will be tremendous and that will be a much needed boost for the sagging economy. It will certainly result in rise in consumer confidence and consumer spending which means every business including yours will gain; no matter what industry you are in.
Can we do it? Yes, we can. May be as our social and corporate responsibility; May be as our social obligations towards the society as well as towards the country. We in the business world can make an effort to do so. No matter, whether we are a capitalistic economy or social economy; When consumer confidence goes up, consumer spending is bound to go up; And when that happens, every economy thrives.
We at “DBA Web Technologies” are certainly doing it. We did not layoff even a single employee till this day in spite of financial strains. In 2007, we told CMP Technology Magazine, in an interview that we want to establish DBA Web Technologies “as a unique company in this country where no employee will ever be laid off”. In spite of being hit-hard by the deteriorating economy, we have kept our word till this day.
In most cases, we lay off some employees because we believe we do not need them for 40 hours a week and we do not have the financial resources to pay salaries to our staff. Talk to us before you decide to lay them off. We will hire your IT staff and then reassign them to work with you at your site. You will maintain the continuity of work and your employees will not lose their jobs. If you need them only for limited number of hours per week, they will be directed to do so. You do not have to pay full salaries to them if you need them for fewer hours per week.
We will help you save your business from total collapse and we will help your employees save their jobs. Not sure? Talk to us and listen how we can help.
And the most painful decision most of us are making is reducing the workforce. As I wrote in my previous article in our June 2009 Newsletter, the reason most companies do so is that it has been ingrained in our minds that the only way to reduce expenses is to lay off some employees.
Let us look at it from another angle. Every time we, as a business, layoff one employee; we are actually bringing the already dwindling economy, one more notch down. Why? Because now the family of this employee will have to drastically cut down their expenses which means this family will not be buying anything except bare essentials necessary for its survival. We all know the negative impact when consumer spending goes down as gradually it starts impacting every other sector of the economy. And our own businesses will not be immune to this no matter what industry our business is in. This is when I am talking about one employee. You can visualize the multiplier effect of this as nearly half-million people are losing jobs every month across United States.
Can Corporate America lift the economy?
In my opinion, the answer is YES!
The only way to stop the free fall of the economy is to stop the bleeding. If at the national level, we can reduce the number of people losing jobs every month along with some getting re-hired, Corporate America will succeed in lifting the economy.
And only multinationals cannot achieve this by themselves. Small and medium business sector is the backbone of every economy. Collectively, we all can lift the economy. But now the problem is if we decide not to lay-off employees or lay-off fewer than is necessary to survive, how do we cut down our expenses.
Let me illustrate a very small but real-life corporate example. Many years back, I was working with an established company. Gradually company started losing business and executive management of the company started thinking of new ways to reduce expenses. Company Management made an announcement that every employee of the company will have the responsibility to turn off all the lights of his or her office when leaving for the day. And most people did. Every evening, I noticed President of the company walking in every corridor of the building before leaving for the day and turned off lights if someone forgot to do so. Nearly 1000 tube lights and bulbs that used to be ON 24x7 were now turned off for at least 12 hours a day. I later heard that monthly electricity bill for the company was reduced considerably. Very small thing but it did make some difference.
We all can think of certain unnecessary expenses in our companies and try to cut down to some extent; leaving the decision of workforce reduction as the last resort.
If you lay-off one less employee or can hire just one new employee, even if it on a part-time basis, you will be contributing towards the lifting of the economy and will be doing a service to the country. With millions of small and medium businesses, multiplier impact will be tremendous and that will be a much needed boost for the sagging economy. It will certainly result in rise in consumer confidence and consumer spending which means every business including yours will gain; no matter what industry you are in.
Can we do it? Yes, we can. May be as our social and corporate responsibility; May be as our social obligations towards the society as well as towards the country. We in the business world can make an effort to do so. No matter, whether we are a capitalistic economy or social economy; When consumer confidence goes up, consumer spending is bound to go up; And when that happens, every economy thrives.
We at “DBA Web Technologies” are certainly doing it. We did not layoff even a single employee till this day in spite of financial strains. In 2007, we told CMP Technology Magazine, in an interview that we want to establish DBA Web Technologies “as a unique company in this country where no employee will ever be laid off”. In spite of being hit-hard by the deteriorating economy, we have kept our word till this day.
In most cases, we lay off some employees because we believe we do not need them for 40 hours a week and we do not have the financial resources to pay salaries to our staff. Talk to us before you decide to lay them off. We will hire your IT staff and then reassign them to work with you at your site. You will maintain the continuity of work and your employees will not lose their jobs. If you need them only for limited number of hours per week, they will be directed to do so. You do not have to pay full salaries to them if you need them for fewer hours per week.
We will help you save your business from total collapse and we will help your employees save their jobs. Not sure? Talk to us and listen how we can help.
