User:Onlinesneh88

Layoff: Can it become a blessing in disguise?
Here is something no boss wants to say but with recession soaring this is becoming a common phenomenon: You're forbidden from checking e-mail, making work calls and peeking at your BlackBerry. In these desperate economic times, more employers are forcing thousands of workers to stay away from work.

From an ethical and moral standpoint Pink slip doesn't seem fair or logical. Sometimes economics does not equate to our sense of fairness and what is right. The other thing is that since the inception of employee at will there has not been too many cases of company loyalty to its employees. This is why most people today will only stay at a company 2 -3 years and then seek new opportunity.

We can always ACCUSE companies for laying off but we will never say anything to the employees who just leave the company in the middle of the project. Many people will say that employees leave because of less salary etc..etc which in other words mean employees leave because of MONEY, so is the case with the companies. Companies also lay off employees’ because of money. If we want we can take Layoffs in a positive sense: "If you're going to do it, do it right,” said Michael Gibbs, a professor of economics and human resources at the University of Chicago.

~As we move to a recession, not only are we trimming costs, but we are generally cutting the redundant workers.

~We end up with higher productivity in the labor force, and the downturn sows the seeds of its own upturn.

~We need to be cautious and go slowly because every slowdown ends, and in this case it's important because there's a really good chance by the end of the year, the economy is going to be looking fine again

We have to understand a company’s thinking from an economic viewpoint. There are two costs when it comes to employees. The viewpoint from the employee and what they see as salary. Then there is the company viewpoint of "loaded" labor cost, your salary plus all other associated cost of you being there, insurance, workman’s compensation, furniture, training, insurance for accidents, etc. Capital items such as buildings and such are depreciated and can be depreciated at different rates within reason. So there is an advantage to maintaining or holding on to the capital items vs. keeping employees. Employees are a high overhead costs and are the easiest to eliminate. When they need new people they are the easiest to replace. Unfortunately people are a wide commodity and easy to find. So from an economic stand point companies are doing what they must.

Cost cutting goes like in this order:

1) All the free benefits goes 2) Increments get short 3) Company try to save on Power and other Utilities bills

and even after doing all this, if company still faces problems with their funds than they do the LAST resort i.e. Lay off.