The devastating blow coronavirus has given businesses globally in the past few months has led to workers losing their jobs. Business owners have downsized their work force, most organisations are folding up and businesses are running into debt.
Research has shown that, one of the major reasons why people are badly affected by recession, depression, economic downturn, even the current economic implications caused by Coronavirus is the lack of financial intelligence principles notably money management, planning and implementation.
Financial expert, Olumide Emmanuel who was a guest on TVC’s Your View show, mentioned that companies letting go off their staffs is as a result of not abiding by some business principles.
According to him, “For every organisation, your total payout when it comes to salaries, emolument of all staff should not be more than 30% of the companies income. According to financial management principles, every individual, family and organisation should also save a minimum of 10% of their income for eventualities.” These principles are not very easy to practice. Mr Olumide stated.
However, “The companies that are laying off now, some of them have not been able to apply those principles, so they don’t have any savings. And for some of them, they are laying off because they have come to realise that most of the staff that they have are actually dead weight, and are not effective going forward. A lot of people never knew that they could run their companies virtually.”
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Mr Olumide stated that he has been an advocate for task oriented schedule for work which promotes salary payment per month and not the regular salary system adopted in Nigeria. According to him, many Company heads now realise that some of their staff are not useful to them and that’s why they’re giving sack letters.
See ALSO: We Will Shutdown Companies Issuing Sack Letters To Staff – NLC
Mr Olumide suggested the per hour payment of staff.
“When we went through the last recession, and I saw the way things were going, I already knew that we cannot continue to pay people for activity, we have to pay for productivity. I have been an advocate for many years of why people should be paid per hour, not per month. Most of the time people just go to work, sometimes they have finished working 2,3 hours, they are just gisting, going on the internet. We need to come back to task oriented work schedule.”
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Mr Olumide added that the salary system of payment is one of the reason we have thew problem of corruption.
“Many of the people in the civil service today, they’re not doing much. Many of them computer can replace them, technology can replace them. Many of them go to work 2-3 times a day yet they collect salary. If we want to be like a developed nation, we have to do things the right way. Paying people per hour, paying people per task is part of what we have to think of going forward.”
Speaking with
