No Money for Employment, But Hate to Lose Competent People

Jamie Odell, who was to begin to work as an analyst at the worldwide stock company JP Morgan, heaved a sigh of relief after receiving an email from the company. Via email, the company requested her to delay her work in the company for one year while the company would make payment 20,000 US dollar in advance, which is 20 percent of the annual salary. There was one condition, which was Odell should not work in other competing companies.

Recently, the U.S. financial organizations are introducing `deferral programs` since they do not want to lose competent people to other competing companies while they have to reduce the cost right now.

Explaining such a phenomenon, the New York Times recently reported that many investment banks, such as JP Morgan and Salomon Smith Barney, are experimenting this system since the system allows them to reduce the cost in the time of economic stagnation, and not to lose talented people without damaging the company`s reputation.

However, seniors of the investment banks and the 2002 U.S. college graduates are not positive about this phenomenon. The more seniors will be laid off as the easiest means of cost reduction, and the college students who are to graduate next year will experience more difficulties in employment. The investment banks are also concerned that how they would keep the promise if the economy does not recover after one year.

An employee of a foreign stock company said, ``It seems that it is not just our country that is troubled with the difficulties in employment due to the worldwide economic stagnation and the structural adjustment.``

witness@donga.com