Date Added: Aug 2009
Most executives would agree that the long-term success of any company depends on the quality and loyalty of its people. The problem is that when the going gets tough, managers focus on the hard numbers, such as the cost of labor, rather than the soft numbers, like the economic value of enhanced employee relationships with customers. While Wall Street often rewards layoffs by treating them as a sign that management is serious about getting a company's financial house in order, the reality is quite different. Most organizations that downsize fail to realize any long-term cost savings or efficiencies, which necessitates even more restructurings and layoffs.