Dealing with a recession

Filed Under (Business) by Jason Monastra on 02-11-2008

Recession and depression have been common words over the recent months.  Fear appears to have taken a huge hold on the economy, making companies and employees worrisome of the future.  Current employees looking over their shoulders with leadership speculating on the future has made the work culture at most companies like walking on razor blades with bare feet.  So how to do we deal with this, how do manage our fear, how do we continue to do our job.  Simple.  Pray, make a plan, be consistent and you will be amazed at the attitude you bring to work.

I mention prayer as it has been a huge part of the last 10 yrs of my life, as my faith in God has made dealing with hard situations easier knowing that Christ is in control.  Keep that in mind as you review your own situation and are looking for an understanding of details that you might not fully grasp.

Make a plan.  A plan is needed dealing with the good and bad situations that you might have in your career life.  Plans are essential as they offer us a clear view of what we should do in times of distress.  Making these plans in a frame of mind that is clear allows for us to better deal with emotions when things are going south.  A few things that should be a part of your plan:

  • Understand how the recession actually is effecting your business and if it truly effects your position
  • The fear that is gripping a good deal of the working professional is not accurate.  Yes, the positions might be at risk, but people need to understand why and engage that head on making a better assessment of their job status
  • Look at your skills, understand your strengths and weaknesses. 
  • Determine industries that are being less effected by the business climate or are growing during this time
  • Research and understand employment trends in those industries, highlighting skilled areas that are in a strong need
  • Evaluate your skills and their application to the needed areas where the companies are in need
  • Make a marketing plan and proceed with applications

First and foremost, keep doing your job.  Nothing is easier than a struggling company looking for low hanging fruit to let go.  Don’t give them a reason.

Change of traditional relationship

Filed Under (Business) by Jason Monastra on 02-11-2008

I read a good amount of articles about basic employee-employer relationships, and a recent article got me thinking about the new work force and if it is better or not.  The article comments mostly on the development of employees becoming more resources to be used as needed vs. the full time employees.  A rise in consultants, sub-contractors, etc. have changed what could be considered the traditional relationship, causing an entirely new suite of workforce issues.  So are we better off or not?

In a global economy, the need for free flowing human capital resources is growing, and more importantly required.  Supply chains, business process and additional components are less traditional, therefore requiring professionals that are up to the task.  Developing countries and new landscapes for US companies require a diverse set of highly specialized skills, most not needed on a full time basis.  This sort of expertise is groomed through multiple projects and can be invaluable driving the compensation for such professionals upward.  As with anything, there are cons as well. Full time work, security, and other emotional factors of the traditional relationship are lost leaving people unsure of their future.  In addition, the consultant is not only a unique skill set technically, but also functionally calling for soft skills that not all people possess.  These people will need to be sales people, promoting their skills to potential clients.  Again - not all people have this suite of characteristics.

Companies need to continue to manage their employees, especially those that are needed consistently.  Consultants need to be directed for projects specific to intiatives that require distinct timeline requirements, ones that have a beginning and an end.  A mix of both the consulant and employee is a strong foundation for companies working in a global scene.

AIG Bonuses

Filed Under (Business, Politics) by Jason Monastra on 02-11-2008

I have been following the tragic decline of AIG since it made the headlines, waiting and hoping for a sign that shows the leadership change that is drastically needed to make the company move in the right direction.  However with the bailout, additional funds, and increased timeline - we have seen nothing but some of the lowest aspects of financial leadership and economic responsibility.  All this being done at the cost of the taxpayer with little to no oversight by our government which gave them the money.

First out, the $442,000 that was spent on the retreat and rewards event for the top sales people.  This occurred right after the bailout plan was announced, spitting in the face of companies and people that are nickel and diming by during this time.  Secondly the golf and hunting trips that have cost the company near $100,000 continue along the path of lavish expenditures which the company’s elite have become accustomed and have no issues continuing even with public funds.  Lastly and most recently announced, the consulting dollars assigned to the former division chief who oversaw the company’s management of their credit derivatives.  $34,000,000 in a one time payment plus $1,000,000/month is going out for these services.

Are there no laws.   Recently, the State Attorney General of NY - Andrew Cuomo, has raised the flag that enough is enough.  But even with his most recent requests, spending has not declined.  There must be more than simply talk of action, but action required.  People need to know that their public funds are not being wasted for the benefits of a few people.  Personally, consulting and offering large payouts to someone that was instrumental in your downfall makes no sense.  Are there are committees and government appointed experts in the field that should be assigned to a company such as AIG to oversee critical business operations should such a loan be made?  Instead, we feed the process that has failed, offering little more than a bucket to move water from a sinking ship.  How many buckets will they need next year?