Friday, September 10, 2010

Keep Cutting Employees for the Bottom Line?

A great post at Financial Armageddon:

"A great many corporate executives seem to think they can keep squeezing labor costs with impunity to impress Wall Street analysts and drive up their company's share prices. But as with most seemingly unstoppable trends that only really make sense to those with a simplistically myopic focus on cold, hard numbers, the reality in a world where the data reflects the efforts of living, breathing individuals is altogether different. At some point, suggests McClatchy Newspapers in "Employee Stress Affects Companies’ Bottom Lines," the law of diminishing returns -- and of what can't continue, won't -- begins to apply:"

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