Human Capitals

Any sensible companies will tighten up and re-look at any frivolous expense lines and most importantly to strengthen their governance practices and delivery of top and bottom lines in the wake of any crisis. While company performance and in particular staff performances in the years or even months leading up to the turmoil is the subject of debates, company performance is critical now as it needs to respond to the financial market turmoil and the global recession so as to stay afloat with its nose above water. Almost everyone’s nose will be wet and the financial crunch must mean that most pockets will be affected.

Attrition by selection due to poor performance or due to higher expectation is normal for times like this. Either staff is not doing what is expected of them, or the expectations of staff is far too high as they may have to take on multiple job roles and function possibly with lesser support. I think that both scenarios are possible and the mental and physical well-being of these staffs must be strained to a greater or lesser extent and there will be no way out of water without getting your nose wet. Personally, I think we need to create company-level governance and compensation structure that allow for flexibility and at the same time without creating conflicts in the performance and pay equation.
The structure of running a sustainable business will mean that companies need a radical overhaul and also to manage the attitudes and competence of the individual staff. In particular we need to create a structure that fosters challenge in crisis without creating conflict and fear. To keep the company afloat and inevitably to ensure that the pockets are not hit badly is the responsibility of all of us, not just the management or the board. The natural herd instinct in crisis is to run away from source of problem which is flight or to stand guard to fight.
The real challenge is to get the herd together to run in the same direction with sufficient motivations, monetary or otherwise.