Businesses 'must face realities' of downturn

Date: 12/03/2010

Organisations that are hoping to use a series of distractions to keep their employees' minds away from the dangers of the recession are in danger of being found out, according to a leading commentator.

Eric Morath of the Wall Street Journal, reported on comments from experts who spoke at the Daily Bankruptcy Review Restructuring and Turnaround Summit in New York this week.

They explained that managers "too often borrow a page from the playbook of The Office" and continue to look for distractions instead of simply facing up to the reality of modern-day business.

It was argued that managers at troubled companies are often "using employee morale and customer reaction to bankruptcy as excuses not to do the heavy lifting" required in reorganisation.

As a result, businesses ought to use incentives and recognition after figuring out their finances, otherwise it could all come crashing down.

According to the newest Kelly Global Workforce Index, the economic downturn has led to a powerful sense of engagement between workers and employers.

Posted by David Farrior

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