The Survival of the Safest

Some of the precautionary steps businesses are taking to preserve their companies may also be adding to the downward economic spiral. There is a paradoxical relationship of morale in companies. Businesses are not hiring which is dropping morale while trying to keep spirits high in the office. Managers consistently report their concern about the emotional state of employees. However, it will be difficult to keep morale high if they have to make pay cuts or lay off employees. The problem is beacause the attempts to keep morale high with current employees may be preventing the job market from growing. When will the vicious cycle stop?