Expanding ...and Contracting

Good morning. While not unique to the title business, the following is a process that I have seen repeat itself time and time again: Step One - Title company with a nice reputation is picking up business, the employees are very good workers and the volume of settlements is high; Step Two - Title company provides candy, chocolate, wine and/or champagne to the clients during the in-house settlements, and times are good & everyone is happy. Step Three - Title company management is very happy with everyone and gives raises and/or bonuses and looks toward expansion by opening another office, or leasing additional space at their location. Step Four - interest rates go up, Title company is unprepared and has to (a) get rid of the candy, etc. (or send out a company-wide message that it is only for clients), (b) start layoffs and/or cutting salary because they overspent during the mortgage "boom" and (c) let the employees know that they will be making difficult decisions over the coming weeks/months. Step five - Real life version of "Title Company Survivor", as the number of closings drop, employees get laid off, gossip and speculation increase, the employees still at the Title Company have to pick up the slack and worry about their own jobs. Or maybe that's just life and it's just me. The mortgage industry is experiencing it now, and it has happened before to the auto and aviation industries, to name a couple. Lesson to title company employees: Life is sometimes tough, you have to roll with it, and keep your resume updated at all times. Lesson to title company management: THINK before you spend. Generosity and expansion is a good thing, but in moderation; otherwise, you create unrealistic expectations of employee entitlement and shock when layoffs occur.