Waiting for the Next
Move
As news of massive corporate downsizing continues to
dominate many of today’s headlines, a recent
study appearing on HRnext.com indicates that many
employees, especially those working for companies
already going through one round of layoffs, should
not yet feel they have dodged the bullet.
In a study conducted by Unifi Network, a
subsidiary of PricewaterhouseCoopers, of 114
companies polled, approximately 50 percent have made
personnel cuts in the past 18 months. Another
noteworthy finding shows that of those companies
already in the process of laying off workers, 50
percent of them plan to make additional cuts over the
next 18 months.
When further broken down the study found
the manufacturing industry has been hit hardest and a
reported 61 percent have made or plan to make
cutbacks in the future. The not-for-profit sector has
been the most protected, with only 8 percent
considering downsizing.
Todd McGovern, director of Unifi
Network’s compensation practice, offers this
piece of advice: “Executives and other
employees need to educate themselves about their
company’s severance policies so that they are
financially prepared if the ball drops and they are
let go.”
Beware of
Bullies
Most of today’s workers have grown out of their
grade school selves into well-mannered adults. These
career-minded individuals rarely think back to the
days on the school playground when bullies harassed
them. They’ll never encounter that childish,
intimidating behavior in the workplace—or will
they?
According to CareerBuilder.com, many
employees are forced to relive those distant
childhood memories on a daily basis. “Bullies
may be older, better dressed and craftier now, but
they are just as mean and destructive.”
Although awareness of the trend remains
low, a study conducted by Wayne State University
shows that 21.5 percent of all employees have been
bullied in some way during the past 12 months. Many
people aren’t conscious of these actions
because they are highly denied and generally
misunderstood. These victims are, “easy to
manipulate, exploit and control—and bullies are
attracted by vulnerable people.”
The only way to stop a bully is to spot
one. According to a survey conducted by the Campaign
Against Workplace Bullying, Benicia, Calif., bullies
can often be spotted blaming others for errors,
criticizing the abilities of others, threatening job
loss, yelling, screaming and stealing credit for
others’ work.
Perhaps this sounds familiar to you, but
you don’t consider it bullying.
“We’ve all been snapped at or ignored by
a coworker or boss who is under pressure or in a bad
mood. Bullying cuts deeper, however.” If you
happen to be one of the unfortunate who work in this
unpleasant situation, remember that you have outlets.
It is harassment like any other and should be treated
accordingly.
Keep Coming
Back
While the negative effects of corporate layoffs are
countless, many employers have proactively initiated
programs to counteract future problems. Having
already learned from the economic upswing of the late
1990s that finding valuable, talented employees can
sometimes be harder than it seems, many companies
have begun offering “stick around
initiatives” to avoid running into this
situation again.
According to a recent article in the
Wall Street Journal, these initiatives represent
organizations’ attempt to not fully cut ties
with valuable employees. Instead, they have offered a
variety of alternatives to seeking employment
elsewhere. This way valuable workers can be rehired
when the economy gets back on its feet.
Among companies participating in these strategies,
Cisco Systems Inc., San Jose, Calif., proposes its
laid-off employees forgo their severence package and
spend a year working for one of the nonprofit
organizations associated with Cisco while receiving
one-third of their salary.
Texas Instruments in Dallas approached
the situation with a different solution. They decided
to “lend” employees to vendors for up to
eight months, after which time the employees will
hopefully be hired back. The vendors reimburse Texas
Instruments and agree they will not offer any
permanent placement for the temporary workers.
While many laid-off employees are
jumping at the chance to take advantage of these new
strategies, some are hesitant about the actual
benefits. From concerns centered around losing their
technological edge to questioning whether this is an
easy way for companies to get out of paying severence
packages, questions remain. And it’s important
to remember employment is not guaranteed when these
“sabbaticals” end. Bob Atkins, a vice
president at Mercer Management Consulting, Lexington,
Mass., notes, “The skill sets you may need when
the recession is over could be quite different than
the ones you are letting go of now.”
An
Investment in Training
In these current,
troubling economic times, many organizations are
pulling back the reins on spending. Even purchasing
an extra paper clip or two can be a catastrophic
financial error. Although that may be an
exaggeration, the truth is clear—many of
today’s corporations are penny-pinching, and
that behavior can lead nowhere.
One of the most prevalent victims in
this money battle is training. According to an
article published on BalanceTime.com, Dr. Donald
Wetmore contends that many companies see training as
a cost they cannot afford to pay. However, as Dr.
Wetmore says, “Training is not a cost.
It’s an investment. What’s relevant is
what we get in return.”
That return is not only great in theory,
but is also quantifiable. If a person earning $50,000
per year wastes one hour every day at work on
something remediable by training, that hour costs the
organization $6,250 per year. “If you can help
them re-capture that one hour per day, the training
will pay back that $6,250,” says Dr. Wetmore.
“Now imagine if 25 people involved in the same
training receive similar benefits. Now the return is
$156,250 per year.”
And the time for this training is easier
to find than most people think—just look at the
big picture. “Three days out of five is 60
percent of the week, and that would be a big
expense,” says Dr. Wetmore. “But three
days out of 365 is a drop in the bucket. The payback
on the investment of three days is over 250 hours
just in the next year.”
July 2001 News
for a Change Homepage
