Economy is the prime factor, not just for a particular company or organization, but for a particular country as well, through which it runs its business, does the major transactions and sustain the requirements of its people. The fluctuation in economy brings a lot of disturbing effects on the functioning of any organization.

In the modern world of globalization, countries are tied to each other, not just on social, political or humanitarian level, but many trade relationships have also been formed between the countries. And in case the economy of one country is affected, the business of all the countries that are tied to it through trade will be affected in some way or other. The recent US recession created a huge havoc on the world’s economy, as US is one of the leading business partners in all those industries which are globally linked to one another, to many countries. So its fluctuating economy affected the outsourcing of many other countries in a way which was very difficult to bring under control.

This fluctuation in economy, not just affects a business and its owners, but it also affects the employees associated with it. The first few things that a company follows on the depletion of its resources, is to cut down on its manpower and labor forces and hence a lot of “pink slips” can be witnessed in such a situation. They review the performances of their employees and their wages, and terminate the ones that they can do without, and in some cases even those ones who have really high wages. The salaries are effected too, as, when the output of the organization as a whole is affected; the rewards and compensations to its employees are also cut down upon. In some cases, the employees make official announcements that the salary changes would be temporary, as per the fluctuations in economy, while other take advantage of situations like these and exploit their employees too. But in most cases a faithful employee and an honest employer, adjust with the circumstances.

Economy has a direct effect on a business, and hence when it is down, shortage in job opportunities, low salary wages, bonus cut downs and terminations are the usual case scenarios in any company. One should be better prepared for times like these and must keep tabs on the day to day market and economy of their country and their particular area, to fight disruptions in their lives and their incomes, with a perfect bravado and intelligence.