With the depreciating dollar, continued red charts in the market, and unstoppable migration of investments to other countries, US recession is not in the limbo anymore. I may be wrong in the strictest sense of the term, but the once great economic power that is America is in real trouble (you don’t need an economist to tell you that, right?). If that problem does not make you feel uncomfortable, or at the very least, concerned, try to read more below.
Any BPO company’s US$1M contract from the US, which was previously at PhP55M, is now worth PhP40M. In less than 1 year, they have lost more than 25% of their potential earnings–PhP15M per US$1M–and that is simply due to the exchange rate alone. (And I don’t think anyone would buy the government’s claim that the appreciation of peso translates to improving economy, do you?) These companies will not decrease your salary–DOLE is on your side. Good news? No, believe me, you are in bigger trouble. What if they set some unrealistic goals and you failed to meet them (which is actually the idea of setting unrealistic goals, by the way)? If after systematic discussions and you still failed to meet the goals, no one will stand by you if you get terminated. Some people will take advantage of the system for their own interest. Probably rational on an individual level, but undoubtedly not on a system-wide level.
Once US companies present negative earnings (which actually started last quarter) due to the general economic turmoil, their shareholders will definitely ask for implementation of cost-cutting measures. How do they do that in terms and concepts relevant to the outsourcing industry?
Number 1 is a remote possibility because it is not healthy for US, or any developed country for that matter, in the long run. When thousands of US jobs were moved offshore, it was a win-win solution–developing countries received economic stimuli by the significant and dramatic increase in employment opportunities, infrastructure needs, transfer of technology, etc., while developed countries experienced huge savings. According to the UN, every job destroyed in the US created a number of new ones as a result. This is called “creative destruction” (originally by Schumpeter, and recently, Grennes). Item number 1 above does not count as creative destruction as those who will lose their job would not have any new jobs to apply to. Will the government step in to prevent this from happening even if outsourcing is purely a business decision? Of course. In fact, the gradual but significant migration of jobs to other countries has become so alarming that the State of New Jersey has recently filed a bill requiring companies to hire only American citizens or legal aliens for positions under state contracts. I am afraid this legislative action does not end there.
My point? In the event that the company tries to cut on operational costs, the more likely step would be to stop outsourcing value-added services, i.e., cut down on the not-so necessary stuff first.
I am guessing a number of you are thinking that because you have tenure, then, you cannot and should not care less if the above scenarios are factual, or not. Your tenure, does not translate to security, especially if your company has just lost more than a quarter of its projected earnings simply due to “appreciation” of the peso. Those who do not have tenure will go out first. For the tenured ones, do your math: Can your company still afford your service? If not, then you know you are next. The company should not absorb all the losses just so they can accommodate or retain all of you, or give all its employees industry-competitive salary and benefits because it is unhealthy. It will kill all of you in the long run. I am not about to ask you to make a petition and ask your company to provide more jobs for you. Outsourcing companies are probably making their plans, or executing them already, on how to survive this crisis. And it is my belief that the least that they can do is to let you know what these plans are. Where are you headed? Or for that matter, are you going anywhere at all? YOU HAVE THE RIGHT TO KNOW.
If you think you’re a#se is not at stake right now, and you can sleep well at night, then good. But at least feel for those people who are already experiencing sleepless nights because of uncertainty. Two disgruntled employees can be tolerated by any company, in fact, as long as you do it slowly, the company won’t care at all if you leave one by one. That’s my opinion. They’d rather replace you with someone who’s low maintenance (lower salary), or transfer more workload in a cheaper location. But there is strength in numbers. ASK WHAT NEEDS TO BE ASKED. If the person you are asking is evading your question, go a notch higher. If you are not satisfied, another notch up, until you either exhaust your options or become satisfied with an answer, whichever comes first.
You might end up not having an answer, but what have you got to lose by trying? At worst, you’ll know that they don’t have a plan, or they have a plan to get rid of you. But if I am to kick the bucket in a month or two, I want to know it in advance. If the company really can’t keep me, I don’t want to be surprised.
You’ve read this far. Either I am a good writer… or you believe that there is some truth to what I am saying. If it’s the latter, then, at least show them that you have collective consciousness on this issue. Ask. Rebel. Walk out. Whatever you do, make sure you do it together for the purpose of showing you are one–they cannot fire all of you at once.
Stand up for your basic rights–I tell you, it’s not too much. The next set of steps will just present itself to you.
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