Layoff Train Sucks

I own a very small part of company where I work. At the moment, that affords me job security, which is good. It also means I was one of the first to receive a pay reduction, which sucks. Also means I get to take part in deciding who will not show up on Monday, which really sucks. Doesn’t suck as much as being laid off, mind you. But my coworkers are my friends. I know their spouses, their kids, their hobbies. They know most of my bad habits. I don’t wish to see bad fortune come to any of them.

 

But we don’t have work for everyone to do.  We cleaned, organized, and archived as long as we could. Our marketing materials are in the best shape in the history of the company. We stalled for as long as possible. In fact, we probably stalled a couple months longer than we could afford.

 

September, we started “rolling” layoffs, meaning almost everyone gets to take a turn having two weeks of unpaid freedom. We stagger the layoff with the two week pay period so that when payday comes, there’s at least one week’s worth of pay in it. It also gets us thru the one week eligibility period for unemployment, plus one week’s worth of unemployment $$. And it ensures that our health care benefits continue for everyone.

 

We started 2008 with 20 folks. By middle of November, we were down to 17 folks: one found a job during his layoff, we found a job for another during his layoff, and the third is playing CoD4 while writing a book on his long term layoff. Sometime in January, we’ll be down to 15 folks. By the end of first quarter ’09 I’d guess we’ll be under a dozen. Major suckage.

 

And who’s next? The guy I personally recruited just 12 months ago while work life was much rosier? The single guy trying to take care of his elderly mother while putting his daughter through college? Or the young guy who recently moved in with his mother-in-law so he and his expecting wife can afford to have child in January? Hell, as some point soon, it could be me. I don’t fucking know. It all sucks.

 

There’s some good stuff on the list below of things companies can do in an effort to avoid layoffs. I count 10 of which my work has been using. Hopefully someone here finds it useful, and saves someone else’s job.

 

"Here are 23 alternatives to layoffs:

1. Run a tight ship. Hold the line on hiring before the inevitable economic pressures arrive. In boom times, avoid the temptation to hire extra employees. Find ways to increase productivity before adding new people. Initiate a hiring freeze.
2. Continuous, selective termination. Adopt a process of continuous, selective termination of under-performing employees so that mass terminations in times of crisis become less necessary.
3. Share the pain, with shared pay cuts. Cut everyone's pay by the same percentage. 
4. Share the pain, with shared reductions in hours. Cut everyone's hours by a certain percentage.
5. Freeze pay. Hold the line of pay and salary increases until the crisis has passed.
6. Pay cuts for stock. Cut everyone's pay in exchange for company stock of comparable value. Or cut the salaries of the exempt and/or higher-paid employees and offer them stock of comparable value.
7. Profit-sharing. Offer the possibility of profit-sharing bonuses after the turnaround to employees who accept pay cuts during the tough times.
8. V-time. Use V-time (voluntary, reduced work time). Ask for volunteers who will accept a temporary layoff. Let them know they may qualify for unemployment benefits (depending on the rules in your state). V-time can be attractive to employees who want some free time off for personal activities.
9. Flextime. Offer reduced, flexible hours to some or all full-time employees. Some employees may be eager to accept reduced hours if they can have the freedom to adjust the hours they work.
10. Shift to off-site employees. Convert some full-time jobs to fewer hours and have employees work these hours from their homes as at-home, off-site employees. Some employees will be eager to work from their homes.
11. Retrain. Retrain employees to do other, more needed work and to become better at their jobs.
12. Share jobs. Introduce job-sharing for some employees. Encourage some employees who can share jobs to cut back work hours and share the same jobs.
13. Job shift for higher returns. Identify the high return areas of your operation, and shift people from low return areas to the high return areas.
14. Attrition. As people normally and voluntarily leave, don't fill the vacancies, or postpone filling the vacancies.
15. Retirement. Offer voluntary, early retirement to those employees who qualify.
16. Cut temps and contractors. Discontinue using temporary employees and independent contractors.
17. Find alternate employment. Find temporary employment for some employees, with other employers in the area. Have agreements with the employees and employers so that these employees will return when business conditions improve.
18. Use vacation time and paid leave time. Encourage, or even require employees to use their accrued paid vacation and paid leave time.
19. Unpaid leaves. Offer employees unpaid leaves of absence.
20. Cut overtime. Eliminate or reduce overtime.
21. Do catch-up work. Get caught up on jobs and activities put off in the past. Nearly every workplace and every department has a "to do" list. Put employees to work a few hours each day getting the workplace ready for the turnaround that's coming.
22. Innovate. Adopt innovative practices that increase sales, making a layoff unnecessary.
23. Tap employees for ideas. Adopt an employee suggestion program, or pump up your existing suggestion program. Focus all employees on generating ideas for new products and new services, and for improvements in existing products and services. Focus all employees, also, on generating ideas for cutting and controlling costs."