No doubt your inbox is filled with seminars and articles on layoffs. There is so much garbage out there being foisted on owners and executives as IF layoffs were ethical. You get fired for screwing up somehow. A layoff however, hits good people, many of whom are and have followed their bosses’ orders, had stellar reviews, and are still losing their jobs.
I’ve been there and unless you know what being laid-off does to the emotions, psyche, and loyalty of a person, I don’t want to hear some academic, psychologist, or so-called expert talk about the right way to handle a layoff.
There is no right way. Layoffs suck. They can destroy people, families, and entire communities.
Oh sure, you can go about ‘rationalizing’ that the sacrifice of a few for the greater good of the company is noble. Well guess what? There is nothing noble about telling a hard-working person “I’m sorry, but we’re eliminating your position.”
Let’s look at some of the politically correct drivel that has entered into the conversation on layoffs:
Keeping surviving employees productive and positive after a layoff: can’t be done. If they’ve got half a brain, they’re updating their resumes and looking for another employer with better strategic planning execution.
Overcoming Survivor Guilt: while losing a job is significant, this isn’t life and death. Survivor guilt around a layoff is an irrational term that suggests people are saying, “Gee I wish it would have been me instead of my co-worker” and you know that’s not reality.
The words for a manager to use to deliver a layoff message: I’m not sure, how about, “you’re losing your job even though you’ve been following my orders which were clearly wrong to sustain the business.”
The best way to deliver the layoff message: Definitely not by email, memo, mass communication, but at least have the guts to have one-on-one conversations and look the person in the eye to tell them they’re out of work.”
How much interaction is appropriate to have with the surviving employees: I don’t know how many times you can look someone in the eye and say, “Don’t worry, just do your job and everything will be alright” when that’s what their unemployed co-workers did.
Hopefully, you’ve gotten the message that layoffs are not an ethical, easy, or justified decision no matter how many Fortune 500 companies have adopted it as a reasonable strategy in tough times. Like individuals, employees and customers, judge you and your company by how you act in tough times as well as good. If “people are our greatest asset” how can fewer be sound logic.
One of the more common complaints I hear from employers is that employee loyalty, dependability, and commitment just isn’t common anymore. How can you hope to garner loyalty and/or attract good talent when they know at the signs of flawed business models, poor management decisions, or economic downturns, employees are the first to go?
I realize I probably haven’t changed anyone’s minds on the practice of layoffs, but hopefully you understand the consequences, and no amount of intellectual rhetoric will alter them.
11 Alternatives to a Layoff
In lieu of or at least in an attempt to stave-off a layoff maneuver, make sure you explore:- Reducing individual employee hours.
- Reducing executive, management, and staff’s immediate pay with the promise of a ‘recovery bonus’ once things turn around. Realize however, there may be severe legal ramifications IF every good faith effort isn’t made to honor such an arrangement.
- Seeking longer payment terms from vendors and suppliers in order to conserve cash flow.
- Seeking credit line increases from lender relationships.
- Seeking outside investors.
- Subletting space for added revenue generation.
- Holding a sale on high-inventory/ low-turn items to generate revenue.
- Re-adjusting marketing efforts towards higher profit items.
- Stepping-up your efforts in managing your referral network, not in ‘panic mode’ but to express your desire to do whatever is possible to make you number one in their minds when it comes to your products/services.
- Even though funds may be tight, investing in professional outside advice from a business growth consultant is a wise consideration. You’re not looking for accounting or legal help, but specific growth and profit strengthening.
- Thoroughly reviewing avenues of cutting or better-yet selling your way into profitability.
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