One piece of good news is the cut in interest rates by the Bank of England (6.11.08), the bad news is that the banks and mortgage lenders are,(at the time of writing this article) reluctant to share this benefit with the rest of us: how selfish and irresponsible. With all the alarm bells going off about a recession and our Prime Minister saying the depressing words about a Global Recession in Parliament (22.10.08) – it seems we should believe the doom-mongers especially if business leaders choose to behave like this.
Tsunami made of Drops of Hope:
To counter balance this ineptitude, we now need to create a veritable Tsunami of beneficial actions to lift the economy out of this credit crunch. Just as bad news sells - so does good news: we all need a ‘Drop of Hope’ in all this gloom. A good start is to drive a shift in thinking and behaviour by our business leaders and Politicians. I believe we need to start thinking laterally and creatively about getting businesses out of this depressed mindset. To do this, we all have to do our little bit, this is not something that can be done just by a few imaginative individuals.
A War time spirit is needed:
Rather like the community efforts my mother talks about during the Second World War, each business has to start reducing its prices – by 10, 20 or 50%, should discuss with staff how to reduce their hours to a 4 day week, cancel paid sickness absence, or staff should take fewer holidays, or employers should re-negotiate benefit packages: so that each business can manage its costs more effectively – and so reduce the need to borrow. Redundancy should be the very last resort!
Redundancy should be the last resort:
The last few years has seen a focus on attracting and retaining truly talented people. These people are the life blood of our industries and we need to find ways to keep them employed. Firms shouldn’t be throwing the baby out with the bathwater: you need to hold on to these brilliant people. Of course taking swift and decisive action is important, but is making redundant your previously much sought after, talented and experienced staff, the only way to do this? What will happen as we start to rise out of this self-induced crisis, will you be able to find the talent and experience you will need? Probably not – and certainly it will be at a cost.
Employment Legislation: some should be repealed:
Surely we should be challenging the UK Government and the EU to repeal some of the onerous Employment Legislation? How can we negotiate with staff swiftly and effectively if we have to, under current legislation hold 3 months’ worth of consultation if the changes proposed to staff Terms and Conditions of Employment affect over 100 staff? How can this enable companies to act with flexibility and agility? By the time they have complied with legislation, they may have missed the window of opportunity.
It is also conceivable that some organisations may choose to ignore complying with Employment Legislation, daring exited staff to sue them. We will reach a state of brinkmanship between employers and employees – and statute. Reason would suggest that if the Government chose to act first and fast – then they can anticipate such a rout.
Is it wise to throw the baby out with the bathwater, isn’t it time to challenge management teams to apply some of King Solomon’s Justice? Do you want ‘the baby’ to survive – or to keep your half?* If businesses adopt a more adult, inclusive decision making process there is a chance of genuine survival. To be successful you have to be prepared to think differently to stay in business: this is survival of the quickest and fittest.
Reduce Employer Tax and NI:
The alternatives to taking no positive actions are almost too awful to contemplate. But if Governments around the world do not face up to their responsibilities, caused by this financial crisis then they have to take the penalties too. Here are some ideas for all to consider:
- Employers could have a 1 – 2 year ‘holiday’ from Employee Tax, NI and corporation tax, or have reductions in these and other taxes, - We could have a reduction in VAT for a 2 – 3 year period. - If people are not employed where is the British Government going to get the money to pay the pensioners?
Ignoring these ideas could be perilous – because if we have mass unemployment in Cities around the world, we could surely see Global Anarchy. People who have no jobs, lose their ability to sustain themselves, their self-esteem and their families. They will lose their homes, cars, be unable to feed themselves, won’t be able to take their children to school, nor pay for childcare. They will be free to roam the streets, to prey upon others, they will resort to crime and mob rule: they will have nothing left to loose. The Police, law courts and prisons will not be able to cope, and so we move inexorably into disintegration of our society as we know it. The armed forces would have to be drafted in to keep law and order – if they have homes to live in.
We have to fight for the alternative position, so help the revolution, help other businesses and people to change their thinking – and offer a Drop of Hope. We are gathering the good news stories of how many of us are working together to cause a Tsunami of Hope. You too can contribute by sending us your thoughts and stories by logging on to: http://adropofhope.socialgo.com and register your thoughts, learn what others think, and realise there is hope for those who are prepared to see it.
*King Solomon was renowned for meeting out consistent and fair Justice. One day two women came into his court disputing who was the real mother of a baby. King Solomon listened to their statements, and then suggested that he couldn’t decide who owned the baby, so he would have the baby cut in half. At this the real mother cried out: ‘let this other woman have my baby – I don’t want to see him killed’. So at once King Solomon knew who the real mother was.