Before getting into the topic, let’s remember some of the world’s greatest companies that have made billions or trillions in revenues from selling their ideas and products. Well, companies such as Microsoft, Apple, Amazon, Facebook, Alibaba, among others are global leaders in the world’s economy market. Founders of these companies are among the world’s richest people.
While we are discussing their innovative ideas and contribution, we shouldn’t forget one of the vital bases for their massive fortunes which are strong manpower. In other words, a huge collection of intellectual people (employees) work regularly for these companies.
Over the past few years, we have seen that several chief executives left massive salaries and reputed positions. A few examples are Ursula Burns, Xerox’s former CEO, Ford’s former CEO, Mark Fields, Yahoo’s former CEO, Marissa Mayer, etc. Despite earning a huge chunk of wealth, why there is no security in the business sector? Also, why a company’s growth can’t be determined as the employee’s growth? Let’s begin:
Changes in Business Structure
Expanding a business is a complicated procedure as it needs a valid and superior business strategy. A proper plan that can evolve with time is extremely essential for a company’s growth. And, business without a clear agenda clearly will become obsolete. So, leading executives such as CEOs and managers are responsible for estimating the company’s growth.
The growing organization keeps employees productive, focused, and engaged. However, even a billion-dollar venture can drop out of the industrial market if they stop keep innovating. Further, employees get demotivated and will be limited to show their skills and thrive on their best performance.
Mergers and Acquisitions
Business acquisition is probably one of the best things that can happen for someone who recently launched a venture. A company if merged with another big organization means there is more way for success and profits. However, employees will immediately start worrying about their own jobs. While some are allowed to remain with the previous company, others might are let go.
If the merging companies are in the same industry, then there might be a risk of hitting the unemployment. During this time, the leadership team keeps the proper track of communication but still, employees are always nervous about their salary and positions.
Toxic Environment In Business
Do you know why McDonald’s former president and CEO, Steve Easterbrook left the position in 2019? Well as per McDonald’s BOD, Easterbrook violated company policy by becoming involved in a consensual affair with another employee.
Above mentioned scandal is just an example of how a person of higher status could show poor judgment. In a work environment where a leader such as CEO can’t control their personal emotions then it definitely will affect the employee’s daily progression.
Lack of Job Security In Company
There’s a saying that the best managers hire smart people to work for their companies. But the higher you go the more decisions you have to make in which you might not have expertise. Moreover, employees always want to outshine their colleagues and maintain their stature.
If a manager feels a little bit invaluable from an employee then the chance of replaceability might be higher. Besides, conflicts will arise if the multiple members of the same responsibilities has different salaries. At present, most companies hire people from the outside company based on their experience.
Commitment to Personal Growth
A Company’s growth is directly proportional to employees’ growth. As the manpower takes on new challenges and expands its capabilities, the business will definitely progress. But, many companies think of their employees as replaceable and limit them on salaries and outside interests.
While there are companies like Microsoft and Alibaba paying a handsome revenue to their employees, most of the ventures don’t treat them with some respect. For example, if a company’s profit is higher than its expenses then it should motivate its manpower by giving them incentives. However, a profitable organization doesn’t necessarily build an employee’s career.
Are you familiar with Harvey Weinstein? Until a series of controversies hit him, he was having a good life. The producer and distributor of over 80 Oscar-winning films, Weinstein’s company, ‘The Weinstein Company’ will likely be forced to rebrand or dissolve as a corporate entity. Hence, these types of scandals is also a disaster for employees working at such companies.