Nowadays, almost all the companies are looking to enhance their position in their respective sector to achieve this they are implementing a wide range of thoughts to reach their goals. Companies are not willing to retain their employees once they reached the retirement age. I agree with the thought process of the firms, which are replacing their well experienced and senior professionals with teenagers who are lacking in experience. This essay will discuss the reasons behind the changeover in the ideology in the business sector.
To commence with, The companies which are having their total average age of employees more than 40 years are performing less compared to their arch rivals, this is due to the reason that the senior workers cannot produce that much productivity as they were yielded in their teenage. So, it is a drawback for the management to continue with them. For Instance, a recent survey conducted by “TIMES” Magazine reflected that, the growth rate of business firms is higher for those who employed more young people than the senior and experienced professionals.
In addition to this, The Management tends to cut their annual expenditures by reducing their senior employees who are getting higher salaries. This is because; the firm should pay their employees’ wages irrespective of their turnover this sometimes may be a burden for them. For example, if a management is running in deficit then this idea would be a great relief for them.
On the other hand, some people may argue that, replacing the experienced and adroit persons will affect the business and the productivity, but this is not so convincing because, the same can be achieved by training the new young and inexperienced people with in no time. For example, in 1998 a gas refinery in the USA, has terminated their senior employees to recruit new, inexperienced people this proved costly for them and results in a loss of about 1 Million dollars in a month.
In conclusion, it is a good solution to implement by replacing the senior employees with new and inexperienced people to strengthen the productivity by making them to work for more hours by paying less amount of money and hence to limit the expenses of the firms though. It is a bit expensive to train them, but this is a short term process, however the results will be much better in future.
Nowadays, almost all the
companies
are looking to enhance their position in their respective sector to achieve this they are implementing a wide range of thoughts to reach their goals.
Companies
are not willing to retain their
employees
once they reached the retirement age. I
agree
with the
thought
process of the
firms
, which are replacing their well experienced and
senior
professionals with
teenagers
who are lacking in experience. This essay will discuss the reasons behind the changeover in the ideology in the business sector.
To commence with, The
companies
which are having their total average age of
employees
more than 40 years are performing less compared to their arch rivals, this is due to the reason that the
senior
workers cannot produce that much productivity as they
were yielded
in their teenage.
So
, it is a drawback for the management to continue with them.
For Instance
, a recent survey conducted by “TIMES” Magazine reflected that, the growth rate of business
firms
is higher for those who employed more young
people
than the
senior
and experienced professionals.
In addition
to this, The Management tends to
cut
their annual expenditures by reducing their
senior
employees
who are getting higher salaries. This is
because
; the
firm
should pay their
employees’
wages irrespective of their turnover this
sometimes
may be a burden for them.
For example
, if a management is running in deficit then this
idea
would be a great relief for them.
On the other hand
,
some
people
may argue that, replacing the experienced and adroit persons will affect the business and the productivity,
but
this is not
so
convincing
because
, the same can
be achieved
by training the new young and inexperienced
people
with in no time.
For example
, in 1998 a gas refinery in the USA, has terminated their
senior
employees
to recruit new, inexperienced
people
this proved costly for them and results in a loss of about 1 Million dollars in a month.
In conclusion
, it is a
good
solution to implement by replacing the
senior
employees
with new and inexperienced
people
to strengthen the productivity by making them to work for more hours by paying less amount of money and
hence
to limit the expenses of the
firms
though. It is a bit expensive to train them,
but
this is a short term process,
however
the results will be much better
in future
.