How The Recession Is Changing The Way Companies Treat Their Staff Our Economy Right Now Is In A Sta

How the Recession is Changing the Way Companies Treat Their Staff
Our economy right now is in a state of flux. Just when you think things cannot get worse they do. A poor economy forces us to make changes in the way we live, the way we save, and the way we work. This recession has hit every facet of our life. Not only are we cutting back on eating out, going to movies and buying luxury items but the companies we work for are forced to cut back too.

The recession is changing the way companies treat their staff. Many companies have had to layoff employees and/or implement a pay cut. Companies always look to cut their expenses by starting with controllable expenses like travel, expense accounts, and supplies. Often companies will impose a limit on travel forcing employees to utilize Webex conferencing tools to save money. Sometimes companies that used to allow business class on international flights will now only permit coach class bookings.

Companies in this recession also cut back on supplies. Many organizations will stop ordering styrofoam plates and cups for their break rooms. They now ask their employees to bring in re-usable items that they can store in the cabinets. Other companies that used to provide free coffee, tea and hot cocoa have installed pay per cup machines passing the cost on to the employees.

Gone are the days of working overtime. Many companies have imposed a no overtime rule or allow the employee to take time off in lieu of pay. This way if you work 2 hours overtime they will allow you to take 2 hours off without pay. This works for some people but most people, especially in this bad economy, would rather have the overtime pay.

Some companies also cut back on fun activities for their staff. This could include office picnics, office parties, team building events, and holiday events. This causes a decrease in employee satisfaction and could result in poor productivity.

Some of the hardest hit companies are those in the travel industry. Every day we read about more airlines laying off their workers. British Airways recently asked their employees to take time off with no pay or to work for no pay. As companies decrease their travel spend it directly correlates to the success and failure of our travel companies.

If you still travel you will notice that airlines are looking for ways to increase their bottom line. They have started charging for your checked baggage so many people try to bring everything they need in a carryon bag to avoid paying this fee. USairways tried to change their beverage service in-flight and started to charge passengers for their drinks. This did not last long as many passengers complained about it. It also made the flight attendants job much harder.

Every action has a reaction. When one company cuts back it will affect the income of another company. It causes a chain reaction and the consumer is the one that eventually has to pay more for goods and services. Hopefully this recession will turn around quickly and life can return to normal soon.