Counting Losses

Amidst conflicting news of the downturn having bottomed out, while yet another company is sacking employees and the more optimistic of the lot talking about leveraging the turnaround – one point seems to be falling between the tables.

What about the fallout from this downturn and how will it affect employers, employees and the overall economy in the coming years?

This recession has been a huge shock; emotionally, financially, in fact in every sense of the word. Painful enough for the young and old alike to resort to suicide as an extreme step.

From an individual’s perspective, this has been the time to accept uncertainty as a fact of life. But, this has been particularly difficult for those who have long-term goals and prefer the stability of lifetime commitments to one employer or institution. Within such a context, having to accept uncertainty and potential threats to their economic and social well-being is making them uncomfortable and anxious, particularly when the risks are not understood or are imposed by others. When faced with these variables, the ability to carefully analyse risks or develop creative coping strategies in a formal way can be undermined.

Taken positively, this downturn is an excellent life lesson which again reinforces that human relationships and spirituality are far stronger foundations on which to build our lives than materialism and money. However, how many practice positive thinking is a matter of conjecture.

My concern is that the main casualties of this downturn would be the loyalty and trust that people have traditionally placed in organizations where they are employed. Casual job changing or hopping is a fairly recent phenomenon, at least in India and that too is limited to a few industries. Even today there are many people who have spent their entire lives in an organization. How would this affect employee loyalty in organizations that have restructured with right sizing exercises?

This makes me wonder, who is priority in a downturn? The loyal, long serving employees or the stock market players who buy the share when it goes up and sells the same when the company faces any issue? In many cases the frantic cost cutting exercises within organizations is not an act of survival but a strategy to protect the financial forecasts made, with an eye on the price of the shares. In that context, is it prudent to please the stock market or ensure that employee loyalty and trust are rewarded?

Are we creating more stock market players instead of loyal, productive employees in the society?