Expenditures or Jobs - Which to cut?

Why are companies into wild spree of job cuts? The answer is obviously – “to reduce extra costs”. Isn’t there a strategy other than slashing jobs that helps organizations to reduce costs? The answer might be “yes!”

Before recession, when the times were extremely good, employees and their organizations were into lavish expenditures. Most of them were fancy and unnecessary ones. The opportunities for employees were so wide, that they had a freedom to choose from the organizations, which provided best set of facilities. This left organizations with no other option than to enhance their facilities, in order to attract employees.

Slowly, all of them were habituated to it, though it is necessary or not. Now, when the bad times started, organizations are slashing the employees in order to balance their revenues with those extra expenditures.

Now, it is high time to realize the difference between useful and fancy expenditures. If employees are not co-operating, just ask a question “What do you suggest us to cut – Extra expenditures or your job?”