During this gloomy economic condition, preparing a contingency plan can help Silicon Valley to survive in a long dry financial spell.
With the meltdown of Wall Street, companies had recognized that it is wise to tighten one’s belt in order to survive during this lean time. And while major industries are now adopting its own plan, almost one-third of US companies are still not prepared to face the looming financial slowdown, according to the latest survey conducted by Watson Wyatt Worldwide.
Most companies from US only think that contingency plans are important only when the problem is already there, not knowing that waiting things to blow out of proportion may put the company to its bankruptcy.
Meanwhile, unlike companies from US, nearly half of employers from Asia has prepared its own contingency plans, which means that they are more prepared for the worse case scenario brought by economic decline the whole world is experiencing. According to some economic pundits, Asians have learned their lessons well when the region had experienced economic meltdown during the 90s.
The survey also revealed that employers from Asia perceive that laying off workers is the last resort they should employ compared to most US companies which immediately terminate those people who seem to provide the least service in case that they have to cut expenses. This means that workers who are disposable should be terminated, as heartless and as cruel as it may seem. While this principle may sound acrid for some people, this is just a part of a crucial financial strategy which can help companies survive in this worsening financial decline which has affected companies from all sectors, especially those belonging to the Internet and technology industry.
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