Employment Problems in the Us
Essay Preview: Employment Problems in the Us
Report this essay
Employment Problems In The U.S.
Downsizing, restructuring, rightsizing, even a term as obscure as census readjustment has been used to describe the plague that has been affecting corporate America for years and has left many of its hardest working employees without work. In the year 2001 we had nearly 1.8 million jub cuts, thats almost three times as much as the year 2000(Matthew Benz). In the 1990s, one million managers of American corporations with salaries over $40,000 also lost their jobs. In total, Fortune 500 companies have eliminated 4.4 million positions since 1979 including the 65,000 positions cut in February of 2002 (Ellen Florian). Although this downsizing of companies can have many reasons behind it and cannot be avoided at times, there are simple measures a company can take to make the process easier on the laid-off employees and those who survive with the company.
There are many reasons why a company might need to downsize. In todays corporate America, it is a plain fact that far fewer employees are necessary to maintain a successful operation. Many times, it is the case where a technological advance or breakthrough makes it possible to replace a previously human job. It is also an all-too-common scenario that outside influences such as sudden shifts in the market or changed government policies force corporate executives to make coinciding decisions regarding their staff and these external
changes. The fall in interest rates and energy prices have helped companies control spending in the economic recession, but controlling these costs has taken some of the focus away from there employees and satisfying there wants and needs (Economist Vol. 362). Yet another problem facing the employment of our citizens.
Another one of the major problems in todays business world are the salaries being paid to the workers. Since employers are not paying their workers high wages, the workers have little to put back into the economy. Some cities have decided to make mandated pay raises for employees who have been with firms for so many years. It would also guarantee that employees make well above poverty levels to insure that more money is being put back into the economy (Eric Roston). This causes the system to plummet and forces companies to downsize to keep from going under. Wall Street firms cut positions in order to bring the Dow Jones Security Broker Index up. Because of September 11th many firms on Wall Street have followed this trend, laying off some 30,000 people (David Stires).
The downsizing of a company can affect employees before, during and after it occurs. Employees usually know of a possible downsizing, care of the almighty grapevine, months before it is supposed to happen. Thus, employees may become paranoid and self-absorbed, and their top priority is their own career rather than the bottom line of their employer. This causes them to be unfocused and prevents them from performing their jobs efficiently. Many workers would also be perfectly willing to stab their peers in the back in hopes of keeping
their job. Usually when a downsizing is complete, the company is at an all-time low. This is due to the fact that in almost every merger, acquisition or downsize, employees are faced with uncertainty about their jobs before and after the restructure. After a large percentage of downsizes, ten percent of the remaining workforce will easily adapt to the change, while another ten percent will never adapt. Workers who survive the downsize often have feelings of anger, fear or distrust. Further internal problems result from employees who survive with the company, but cannot adapt to their new settings and expectations, and eventually quit their job.
Many steps can be taken to ease the transition of the employees after downsizing occurs. For the employees who were let go from the company, reasonable severance packages should be offered to help the person until a new job is found (Roger & ME, Micheal Moore). Downsizing not only affects workers that have been terminated, but also affects the survivors. This is commonly referred to as the survivor syndrome( Floyd Griffin). Many people who survive as a result of downsizing often live with the fear that they too will be terminated. They are often shell shocked and distrustful. They are mentally scared survivors of an economic restructuring that they have never seen before. In this constant climate of economic insecurity, their jobs are constantly being redefined. They are forced to meet new levels of production criteria requiring them to do more work in less time and the notion of job security is obsolete.
As for the remaining employees, simple means of communication can be very important. One of the major reasons for employee