Saturday, April 30, 2005

Coping with a business downturn

Someone ask me, "how is business"? I replied, "Business is down. But it is good".

Why?

When business is down, everyone should work less, earn less and spend more time with the family or pursue a hobby.

We should not expect business to be always good, and to work hard all the time. We need to take a break.

I want to encourage people to be on a "holiday resort" mentality.

During peak season, they work very hard. During the off-peak season, only a few shops are open for business. The other people take the time off to do something else.

They manage their earnings to survive on their earnings during the peak season.

Similarly, people who work in other industries should have a lifestyle based on 70% of their regular earnings. They should set aside the 30% as savings for the rainy day.

If they wish to change or lose their job, they can draw on their savings. They will not face any financial hardship.

I also encourage employers to adopt a more humane approach. When business is down, reduce the salary of all workers proportionately, with proportionate time off. Do not retrech the workers, unless they are able to find alterantive jobs elsewhere. Let the sacrifice be shared equally.
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2 comments:

Lay said...

Mr Tan, I appreciate what you're doing here. Many employers do not think this way. I believe many employees are willing to share this burden as long as their colleagues don't have to be axed.

April 30, 2005 4:46 PM
sharon tay said...

“I also encourage employers to adopt a more humane approach.”

It is very common for businesses to lay off workers in the midst of a business downturn. Not many employers will adopt a humane approach.

I am very impressed that Mr. Tan has taken a totally different stand.

He insists on being fair to all employees. His firm belief in seeing employees through hard times by keeping them employed (with flexi hours and pay) is highly commendable.

A great leader must not only invest in his people and allow them opportunities to grow but also see them through difficult times.

Mr. Tan has done just that. It is, indeed, very impressive!

October 10, 2005 10:13 PM

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