SOME banking groups and brokerages would, by now, be in the thick of reviewing operations and drawing up cost cutting measures for sustainability of business.
The effects of the economic slowdown and credit squeeze worldwide appear to be sinking in fast while the dearth of corporate, investment as well as stockbroking activities has led to shrinkage or loss in revenue.
Brokerages within banking groups may have a better chance of survival amidst rumblings of pay cuts. Boards of banking groups are also said to be studying various options related to staff salaries.
In the midst of all this urgency and upheaval, people should bear in mind that staff salaries cannot be made too cheap. Otherwise, staff and good talent become affordable and that is when the poaching and job hopping will start.
The next firm with strong cash reserves may just be watching and waiting to snap up all these talented people at a cheaper price!
We cannot be over-confident, looking at the massive layoffs overseas, and think that there are virtually no jobs out there.
Just as there is a bubble in the credit industry, there is a similar shedding of fat in terms of salaries and staff remuneration.
When that really comes into effect, a lot more companies will be competitive and attractive in this regard.
By then, people get to evaluate their employment options not just based on money and perks but on qualitative factors such as work environment, culture and philosophy.
In certain quarters, the approach is rather glib. When things are bad, they just cut and re-hire or re-instate when the economy improves.
They don’t worry because there will always be some loyalists or diehards who will stay in spite of the odds; moreover, there will always be a crop of young graduates who can be trained.
But those companies with a more serious attitude towards staff retention could consider carrots such as stock options or other benefits to keep their good talent who will help them shine again once things pick up.
However, the kind of benefits have to be weighed carefully to ensure maximum and lasting impact, for example, in the area of retirement.
This is also a time for companies to reflect on the way they have been operating during good times.
The practice of paying inflated salaries and bonuses as well as giving out of expensive perks should be reviewed.
There should be a shift in mindset among those who are so preoccupied with appearances and status symbols that they are willing to part with huge sums for some of these “coveted’’ items.
They should also think of sustainability which should be made a part of their corporate responsibility model.
Companies are rising to the occasion in terms of enhancing the workplace and contributing to the community.
They now need to seriously come up with a model for sustainability of their operations and workforce in the current century and many more to come.
·Senior business editor Yap Leng Kuen is hoping for the best for everyone. People are already trying to save their pennies by cooking more frequently at home while quite a number are still paying their backdated taxes!
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