Wagnerblog

The NY Times has a nice article describing how German companies deal with the economic downturn (check the comments as well !) .

It touches on some of the aspects I previously brought up. The notion that in Europe, especially in Germany, you find a greater sense of social collectivism. Bad choice of words maybe. But read the article and ask yourself the following: “ In the long run, what is a better approach for a country and its citizens. A shared social responsibility or the individualistic approach advertised by the US.?”.   Keeping in mind that you can’t point to the economic might of the US as proof that this is the right way. Why? Because Germany is so much smaller yet so much more efficient with its resources. Imagine if Germany was given the resources of the US. So the self-fulfilling argument of “I am rich therefore I am right” is off the table.

Perhaps you will be in the same situation as I have been. Depending on my age and experience I would answer the question about pros and cons of each system very differently. In my younger years I found the less paperwork approach of the US very appealing. I could start a company on a dime and would not worry about employee welfare.  If the economy warrants it I would hire more people and as the business dictated I would lay them off.

Having been on both the giving and receiving end of this cycle I can tell you that the upshot of it entails more negative impact on the business than positive. My business depends on the intelligence and loyalty of its employees. My people are my greatest asset. By breaking the implied social contract that existed for so long between companies and its employees, I turn my workforce into a group of mercenaries. This is not some theoretical pontification – this is real and actual life. I recently saw a customer have a project severely impacted because he works on a “staff per project” basis with consultants and freelancers.

I know you can probably make arguments for the existence of our current system in the US that are just as eloquent as the ones being made in Germany. However, put yourself in the shoes of the workers described in Times article and then picture a typical US worker being laid off.  A shared social responsibility makes life better for everyone. Not just the fortunate few at the top. I would love to learn more about the way this concept is applied in countries that are even less individualistic than Europe. For example in Asia.