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PrintIn My Opinion - Layoffs in the workplace
Lynn Flinn with The Rowland Group provides insight.
Layoffs have become a daily story in 2008 and 2009 with the highest layoffs reported since World War II. Oklahoma has experienced fewer job losses than most states, but we definitely have seen an increase in the unemployment rate in recent months. I have heard the expression that company leaders should “lay off the layoffs,” and there are alternatives to layoffs that are worth considering. A few ideas that have worked for some companies to reduce or avoid layoffs include:
• Company-wide or management salary reductions.
• Reduction in travel costs.
• Suspension of 401(k) match.
• Voluntary or early retirement.
• Allowing employees to job hunt prior to actual layoff dates.
• Reduction of working hours — for example, working four 10-hour days to cut down on operating costs, particularly in manufacturing facilities.
• Hiring contract employees instead of adding headcount until the market trends stabilize.
If layoffs are ultimately necessary, several things can be done to ensure that the best possible decisions are made and to soften the blow.
Performance reviews should document who the best and worst performers are and ensure layoff decisions are made fairly. Documenting why decisions are made will likely reduce legal implications and individuals impacted should already have some idea they might be in jeopardy.
Conversely, if your goal is to keep top performers, now is the time to assure them they will have a job and that you want them to stay. Unless management is open in communication, top performers may be tempted to look for new opportunities for fear of losing their jobs.
A local human resource manager informed me that she chose to make deep cuts rather than making cuts a second or third time, thus avoiding the constant cycle of more layoffs. This decision was positive for her organization.
“Survivors’ guilt” after layoffs is also a real phenomenon. Not only do those left behind end up with more work; they may also feel guilt over being kept when others were let go. Providing communication and support to both the individuals laid off and those still employed is crucial.
Outplacement for those who are laid off allows them the opportunity to update résumés and receive coaching. Providing reasonable severance based on tenure also allows some peace of mind while employees seek a new job.
Additionally, contacting staffing companies that specialize in the skill set of the unemployed individual may provide opportunities not readily advertised in the newspaper as well as provide additional insights into the job market. Job seekers should also network and not be embarrassed to tell others they are actively seeking a new opportunity.
Finding a new job may require thinking outside the traditional job market. “We Got Fired! … And It’s the Best Thing That Ever Happened to Us” by Harvey MacKay has numerous positive stories of people who have gone on to great opportunities after losing their jobs. New businesses are often started by individuals who have been laid off and decide they would rather start a business of their own instead of working for someone else.
Layoffs are not pleasant for anyone, but many times a more exciting opportunity may be the unexpected result.
Lynn Flinn, CPA, is the president and managing director of The Rowland Group of Staffing Companies. The Rowland Group specializes in the placement of accounting, information technology, engineering and energy professionals.
Flinn was awarded the “2007 Outstanding CPA in Business & Industry” from the OSCPA and the “2006 Oklahoma Woman in Business Champion,” presented by U.S. Small Business Administration. She founded the Tulsa chapter of the Oklahoma Business Ethics’ Consortium. The Consortium’s mission is to promote Oklahoma as a state that values ethics in business. Flinn also facilitates peer advisory groups for women business owners and executives for EWF International and serves on the Leadership Tulsa board.
