The Golden Handshake
Most people want job security. But in today’s trend of globalization job security seems to be a thing of the past. Many companies are down sizing not because they going to bankrupt but just to profit more. ‘Profit’ is I think the common goal of every businessman. I’ve read an article about the trend that was going on in industrialized countries like the U.S. that there are many job cuts being performed by companies due to cost. And the most humane action is the “Golden Hand Shake”. So what is it? According to Wikipedia it’s:
“A golden handshake is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and other benefits, and is often accompanied by an accelerated vesting of stock options.”
Older workers are being eliminated because they are paid higher due to their of seniority. This is happening worldwide because just this year, a foreign company that have a branch in the Philippines just undergone a retrenchment. We can’t blame them. Greed have its’ advantages and disadvantages. If investors are not greedy, they will just put their money on banks and not create jobs. But on the contrary, greed will also eliminate jobs just to profit more. So what’s the solution? Don’t just depend on the job you are in now thinking that it will last till retirement because this is just a fairy tale in today’s world. Think like an entrepreneur, build safety nets and don’t put all your eggs in one basket.