Throughout my career, I had to wear different hats and look at business from different perspectives .
As a rank and file employee , i used to care for two main points - Getting my salary and getting advanced in my job/ career . Whatever happened above was never of my concern .
Moving up to Mid-managerial levels and having staff reporting to me required some more responsibility and i started caring for both my receiving's as well as my team's performance , at this level i wasn't yet responsible for my department's P&L .
Advancing to senior levels -Head of department - where i became responsible for my unit's performance , my concerns have changed completely , at this level attention and care is more about unit's performance and day to day operations and try to keep looking good in front of the top management and owners , at this point we start to understand top management's decisions of holding hiring , termination , holding bonuses etc... , as financials become our daily adrenaline if i can describe it this way .
Also as a head of organization my priorities have been both ways , looking after my staff and ensuring they are happy and perform to the maximum possible and at the same time ensuring that my business unit is performing as per my owner's business and financial vision and expectations .
The reason of writing the above is that the more i have advanced in my career , the more i could see the business from different perspectives and i have reached a level where i could fully understand why at certain times , Owners might be taking some tough business calls , as Juniors working in any business might not fully understand the fact that business have to be viable for owners in first place so that owners in return will ensure team's jobs stability ,sometimes the staff wonder why some of the higher salaried staff are terminated or why a company decided to stop hiring or replacing those staff who leave their jobs, or why a company reduces its training and development budgets just to name few actions that some owners / operators might take in order to reduce business expenses and ensure business continuity .
The equation is simply yet complex , Business owners do create a business with a first priority in mind - Making profits and expand the business.
When opening a new business, owners do spare budgets for the opening , which means at least in the first year of business , owners might be a bit flexible until their business starts making profits , after that they start to get pressured from their lenders -Banks - which is a point many staff are not aware of , this is when drama starts in case a business fails to make profit after a year from operation.
Staff are expecting to keep receiving their salaries, benefits and even opportunities to advance, and this might be impacted simply by the reality of a business not performing , at the end it all come to top operators/ directors in educating their teams about the situation and working together to keep ensuring business viability ,a direction should be transparent to their staff and share with them the financial situation whenever it is possible , celebrate profits and create awareness of times when a business make losses, this way engaging staff and winning their loyalty at tough times as every company has ups and downs .
That is simply my message , Transparency , staff engagement & educate staff rather than just treat them as a Payroll burden whenever tough times come and decide to reduce a certain % in order to improve business profitability .