Satyam fiasco- Satyam’s latest news in recent controversies
Breaking news- Satyam chairman Ramalinga Raju resigns! Since the Satyam drama started to unfold; imagine the plight of Satyam employees who woke up one morning to realize that they may no longer have a job, may not get the next month’s salary, may not be able to pay off the loan on that apartment they have just bought, have no more access to credit on their cards, not to speak of losing assets in the form of shares and stock options that crashed practically overnight.
The other thing about the Satyam fiasco is that no one seemed to have seen it coming – not the employees, not the senior management (at least no one has said anything) and by the looks of it, neither the auditors.
It is of course possible that the new board can salvage the situation to a large extent, but the lesson to be learnt from this is the increasing uncertainty around us.
It is not just like news on general economic conditions and terror attacks, people can no longer be sure of the companies that they work for. How does one ensure or insure job security?
There is no answer to that one. The risk of something depends upon what stage an employee happens to be in his or her career. Going by news reports, there are thousands of Satyam CVs in the market today. They may continue to keep floating for a while because right now, none of the IT companies are hiring. Senior people at Satyam are at a disadvantage because one, they are likely to have held more Satyam shares and made more losses on them; and because there will always be a doubt about their involvement in the scam, but experience should help them land them something somewhere. The fresher’s at Satyam Services would be free of financial and personal commitments and can afford to wait for the right opportunity to come along. It is the middle management that will be the hardest hit, burdened by loans, and family commitments. Even when companies are downsizing, middle managers are at a risk of being fired first because they cost the company more than fresher’s.
The chain effect- A few years ago, a colleague told me a story to illustrate life in the US. Here’s a man who meets with an accident, is held up and can’t attend an important meeting because of which he loses his job. When the credit card company finds out that he has lost his job, they stop all credit to his account. His bank repossesses his home, his car and other possessions that he had bought on loan. One look at utter ruin, his wife decides to walk out on him and by the time he reaches home, his world has fallen apart.
In the US, the concept of insurance against job losses crops up every time there is a recession, though the product itself has not received very good reviews. Some of these are linked to mortgages and home loans, where loans can continue to be serviced even if the borrower loses his job. Then there is the unemployment dole.
In India, employees have to safeguard themselves against this possibility through private funds. In non-financial terms, personal integrity and goodwill can see people a long way through. Professional reputation is worth investing in and personal reputation even in business contexts is highly valued.
Also Read Impact of Satyam services
