Here is a snippet from the Harvard Business Online February 26, 2009:
In response to the global credit crisis, many financial institutions are making drastic cuts.
- 90% are cutting discretionary spending;
- 78% are reducing travel and entertainment;
- 61% are putting capital projects on hold; and
- 59% are performing layoffs.
Will these cuts make a difference in the long term? A Corporate Executive Board study found that only 11% of companies were able to sustain cost reductions after three years.
When I read this, here are some of my employee engagement questions:
- How much does this cut into employee engagement?
- Can we expect discretionary effort when we cut discretionary spending?
- Do we expect our employees to go anywhere when we reduce travel?
- When we are laying off, should we expect those left behind to start laying off of work?