Lay off Lessons: Are Companies Learning?

Rusty Rueff — Tue, 23 Dec 2008 19:29:03 +0000

It’s been since the early 1990′s that most companies had to go through large scale, coordinated layoffs. The internet companies went through it this decade but those were still heady days and people were provided round-the-world-vacation-sized severance packages and most had a job waiting back in banking or consumer products. However, today is different. This is the first time that most in the job market are facing a time when job loss means no other are jobs available. Because of this, most companies are being more deliberate about what they are doing, but many still are making mistakes of the past and you wonder, “Haven’t we learned anything?”

Why December?

Was it necessary to have massive layoffs leading up to the holidays? Let’s face it, the economy has been bad for more than a few months now and could we not have seen lower-than-expected revenues and profits that we could have gotten ahead of the holiday season? The holidays are the worst, if for no other reason, because everyone remembers the company who laid them off during the holidays. Companies that have learned and retain foresight are the ones who communicated well before the holidays that they would be laying off after the holidays so that everyone was on notice to watch their spending and decisions. Yes, it causes some short-term disruption and anxiety but in the long run, everyone is appreciative of the advance warning. (I am also predicting that because many did do this that the month of January 2009 will be another large, if not the largest, layoff month).

Why group notifications?

Can anything be more demeaning than being called into one room while another group of people are called into another room? Yes this creates greater efficiency and control but let’s remember that this is not just about job loss, this is also about potential loss of identity and self-worth. There is a reason that people will go days or weeks without telling their spouse or partner that they have lost their job. Will I still be loved and accepted at home if I am not the executive that I was before? Organizations should go the extra mile and talk to people individually. The best of the best close business for the day and schedule everyone in for their individual notification times so they don’t sit wondering when, or get the email to go to Conference Room A while their co-worker goes to Conference Room B.

Why Fridays?

I’m amazed there are still companies that still choose lay-off on Fridays. It’s one of the worst cases of insensitivity. Sorry, you lost your job and now go home and be by yourself all weekend. Nice huh?

Why instant cutoff?

A “reduction in force” is considerably different from a “cause” termination yet many employers still treat these as one in the same. If done right, then there is a way to not have to immediately cut off someone’s access to their office, email and phone. When you layoff someone and then tell them that you’ve removed their office and email access, you essentially cut off their life-line and thwart the first step for them getting another job and protecting their self-worth. Even if they saw it coming, to not have the chance to use their company email to wrap up relationships and forward their contact information, is pretty inhumane. We all use our company email to keep up with other parts of our lives and now with the “auto-population” of names in the “To” line, we may not have any other way to contact people who we care about (and who care about us) and let them know the change of status. As employers, we also have responsibility in helping people retain their self-respect and protect their ego during emotional and trying times like this. By allowing them to have access to their email long enough to wrap up loose ends and get a start on their next job search is an important step, in the right direction. And if you are concerned with the risks of office access, then let employees take their laptops home for a specified time frame. What do companies have to lose other than a more than likely fully-depreciated piece of hardware? If that’s too much, then web access to email still works. Lawyers may say that for all of the above the risks are too great, but let’s remember that we need to treat people like we want to be treated. We can all act like adults and do the right thing.

While there are plenty of other things that companies can do better, addressing some of the common pitfalls above, add the right philosophy, will not only help you sleep better at night, but the other people still in your company will appreciate that care went into the process. And, we’d all like to think that if it ever happened to us, we have confidence we will be treated well.

Lay off Lessons: Are Companies Learning? is a post from: Glassdoor Blog

Riding the Pink Slip Tidal Wave

Glassdoor Team — Mon, 15 Dec 2008 23:57:34 +0000

In terms of layoffs, November was rough but December is expected to be worse according to a recent CNN article. Between January and November this year, CNN is reporting that there have been more than 1.9 million layoffs. The article states that more companies are expected to issue pink slips this month as they wrap up the end of the year and brace for 2009.

As we see with the three examples below (not to mention the hundreds of other reviews from employees whose company executives have announced or expect layoffs), its either ‘keep your friends close and your enemies even closer’ or the ‘survival of the fittest’ mentality that employees are expressing during this historic recession. Right now the pink slip tidal wave is building fast and employees are holding on for the ride as best they can.

For example, Anheuser Busch announced last week that they are planning to cut 1,400 jobs. According to Glassdoor.com, just 31% of employees approve of Anheuser Busch CEO August A. Busch Iva whereas the company receives a moderate 3.5 (out of 5 points possible) satisfaction rating. Based on employee feedback about the company, the notable brewing company is recognized internally for its cliques among staff. For example a current Facilities Manager writes “People are being promoted either because they are friends or “because they have a nice ass.” We point this out as we wonder how the cliques will be affected – Will the ‘in-group’ stay strong or will the cliques be uniformly cut back in size?

This past Tuesday, Novellus, a company that specializes in semiconductor equipment and materials, announced reductions in workforce would occur however no numbers have been reported. Novellus CEO Rick Hill receives a meager 15% employee approval rating and the company receives a 2.6 company satisfaction rating. Based on insight from a Staff Mechanical Engineer, job cuts are perhaps best made at the very top, the employee states “CEO is out of touch with the employees and the company and don’t think he’s aggressively moving the company in the right direction. I think he just likes to keep busy and keep his job as a hobby.”

Electronic Arts, an entertainment and games software company, also announced that they are planning to cut staff but again no specific numbers have been released publically. KTVU-TV reported that Chief Executive John Riccitiello, who receives a 53% employee approval rating, told analysts in a conference call that EA plans to reduce costs, but also invest more in areas like marketing its hit games. During these current economic hardships, an EA Software Engineer stirs up competitive spirit as the employee suggests to management “Focus on the people. Identify young talent and grow and nurture their skills. Evaluate people for effectiveness in their current jobs. Focusing on the youth will push the more experienced workers to step up their game or be surpassed by younger more hungry co-workers.”

Riding the Pink Slip Tidal Wave is a post from: Glassdoor Blog

Glassdoor Blog » Pink Slip

Lay off Lessons: Are Companies Learning?

Riding the Pink Slip Tidal Wave