The paper “ Can Employers Better Motivate Employees through Smarter Benefit Packages in the UK? ” is a motivating example of the literature review on human resources. The global financial crisis of 2007-2008 resulted in financial difficulties for many organizations. In the UK and other countries that were affected by the crisis, many organizations were forced to reduce their workforce, leading to high unemployment. Specifically, the UK’ s unemployment rate during the crisis was by and large at par with the Organisation for Economic Co-operation and Development (OECD) average of 8.8 per cent in 2009 and 8.2 per cent in 2011 (Hill, 2012, p.
212). This means that many organizations could not sustain some of their employees during the period of the financial crisis and were consequently forced to lay them off in order to have fewer employees whose pay packages they could easily afford. Oftentimes, many organizations turn to this strategy of downsizing whenever there are financial difficulties in the market in order to survive. Still, there are those organizations that introduce pay cuts as a way of managing their employees during difficult times.
However, while such strategies may work to the advantage of the organizations that are affected in the short-term, they cause challenges to the concerned employees, who are rendered jobless and are left to look for employment again or are forced to earn less in spite of the inflation associated with financial crises. This is not to say that downsizing does not have ramifications for organizations that reduce their workforce or reduce their workers’ pay packages. Indeed it does, since organizations that frequently lay off their workers or reduce wages can be adjudged to be unstable.
Such organizations may thus face difficulty in attracting new talents in the future since prospective employees regard them as insecure. Reduced pay for employees may also cause some of them to leave in search of better packages. Moreover, employees may exit an organization when they realize that the organization cannot offer them a pay rise during a recession.
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