Comments on: are layoffs really the answer?

By: manish

manish — Fri, 26 Dec 2008 17:07:26 +0000

no they are not
but solution at orgnizational level are limited and short-term, quick fix.
we have to work across the system, sectors and industry, if we seek transformational changes.

also, there are insights about this from Complexity Adaptive Systems theory (how can organization adapt to environmental complexity that leads to lay-offs?)

By: Just ask Aaron Matos CEO of Jobing.com

Just ask Aaron Matos CEO of Jobing.com — Thu, 18 Dec 2008 03:30:05 +0000

Jobing could fall under that “small business” category and like many companies they have had to shed weight in recent months.

But they have their downsizing to an art form.

1. They don’t “layoff”, they FIRE people! Makes a big difference in unemployment costs.

2. No severance packages offered.

3. They don’t offer any sick or vacation days to any of their employees so no payouts. It also gives them a reason to fire someone if they need time off since there is no set amount of days an employee can have.

So there is the 3 step plan of how to downsize at no financial risk from Jobing.com.

GOOO JOBING!!!

Jobing employee just observing every day,

By: Suresh Raghavan

Suresh Raghavan — Tue, 16 Dec 2008 22:35:48 +0000

I have seen problems with retaining people for too long..they end up in positions that don’t suite their strengths within the company and eventually have to leave or be let go. The Big 3 auto and some of their suppliers are going through this right now.

By: Yazad Dalal

Yazad Dalal — Tue, 16 Dec 2008 19:57:03 +0000

It might cost Adobe $80k per terminated employee, but I am sure their cost per employee is normally closer to $200k (comp+benefits+SGA). The real issue is cutting too soon and too deep – how many of those positions will need to be backfilled because a few babies went out with the bathwater?
Check out Vault’s Layoff Tracker, updated daily:
http://www.vault.com/companies/layoffs.jsp

By: The sidelines

The sidelines — Tue, 16 Dec 2008 19:49:44 +0000

Great ideas…..

There are many things that a company can do to avoid cutting head count.

1) The first one is to not over hire. I know this seems easy but it is a huge problem. There are many companies that have too many sales people to make their organization look good or bigger then they are. I have seem 10 experienced, high level sales reps out sell 30 or 40 reps in total. You will have to pay more per head for the 10 but the results, less time to train and less turn over is a huge cost savings.

2) Offer higher stock options or a higher comp…..many people go to work for small companies for the options. You could offer a $100 base and 20,000 options or a $90,000 base and 30,000 options.

3) Work from home saves a great deal of money. Again to the 10 sales people. – They are pros who you dont have to keep your eye on then let them work at home. You can pay for their cell phone and lap top. Saves rent, utilities, etc, etc, etc

4) Invest in the people and they will invest in you. I for one would take a pay cut in the short term if I worked for a small start up in order to keep people who I thought useful to the company. Most companies would not ask this question but if they did they would be suprised who would stay at a lower cost for now in order to keep their jobs or those of their co-workers.

I hope companies will learn from the lessons of today. Work smart and hire the right people. Have a company plan the same way you ask your people to have a plan.

By: Hayli @ Rise Smart

Hayli @ Rise Smart — Tue, 16 Dec 2008 17:19:26 +0000

Great ideas. Another one is to do away with the 401k match. It may not be the most popular of ideas, but certainly more popular than layoffs. I’d be careful with the work from home idea – a person has to have the right mindset and motivation to pull that one off without sacrificing productivity, and not all employees have it.