- Quote of the Month
- No Pink Slips? (Not at the world’s best companies.)
- Grab A Shovel
1. Quote of the Month
“Over? Did you say ‘over’? Nothing is over until we decide it is!” — Bluto, in Animal House
2. No Pink Slips? (Not at the world’s best companies.)
Are layoffs the answer to tough economic times? You might be surpassed that the world’s most productive companies don’t believe in them!
That’s according to leading business consultant and best-selling author of Think Big, Act Small Jason Jennings. A few years ago, Jennings and his research team studied 4,000 companies worldwide to identify the 10 most productive ones (sustained growth in key metrics over several years).
What did he find?
Leaders of the world’s top companies recognize that a great staff is the key to stability and growth.
And each and every company had a policy of no layoffs no matter what the economy is doing. “They understand it’s the responsibility of enlightened leaders and managers to re-ignite demand, not to fire people,” says Jennings.
Among those Jennings interviewed for a 2005 article was Nucor steel company CEO Dan DiMicco. “The right workers are our single most important asset,” DiMicco said. “When business is bad, as it’s bound to occasionally be in a highly cyclical industry like ours, the first thing to go is every executive perk and bonus followed by every plant manager and supervisor giving up theirs. Only then are the workers affected, and we reduce the work week to five days and then four and, on rare occasions, even three, but we don’t lay people off.”
As DiMicco knows, layoffs tend to create more problems than they solve:
- Communication about layoffs is often mishandled. Confidential information leaks and staff members become consumed with fears that the layoff will include them. Productivity plummets.
- Employees NOT targeted for layoff often become preoccupied with their own financial security at the expense of everything else. Why would a pharmaceutical rep care if she meets her quota that day if she’s concerned she’ll be fired after her last appointment?
- Remaining staff often search for work somewhere that seems more stable Prolonged fear creates an unhealthy corporate culture in which nearly everyone is seeking a new job.
- When demand for the company’s products or services returns, savings from layoffs are often exceeded by the expense of having to recruit, hire and train new people to fill jobs that were cut.
Is it just a coincidence that the 10 most productive companies in the world don’t lay people off? Or do they really see people as essential to success and growth, even in the worst of times?
According to Jennings, it’s no coincidence at all.
Instead of laying people off, consider engaging the entire staff in the effort to cut costs, evaluate processes, revive sales and keep things moving forward. You might be surprised that keeping people is the answer. Not firing them.
(Philadelphia labor attorney Michael H. Rosenthal wrote a recent piece on how firings can increase exposure to discrimination claims. Click here to read.)
3. Grab a Shovel!
Anxious about the economy? I know three things you can do to restore a sense of control over your world.! I just wrote an article entitled “Grab a Shovel (and 3 other things you can do) to Conquer Worry and Drive Success in Tough Times.”
Many of you received a hard copy from me by mail or an attachment via e-mail. If you would like a copy, click here:https://www.weimanconsulting.com/extras/weimansolutions.pdf
4. Seminars/News …
- I will be the guest speaker at the Phoenixville Regional Chamber of Commerce Breakfast Meeting on January 13. The title of the talk is the same as the article mentioned above. Thank you to Chamber President Chuck Benz, Vice President/Phoenixville Branch Manager with Phoenixville Federal Bank & Trust (PBF&T) for the invitation! PBF&T is sponsoring the event (and thank you bank president Richard Kunsch!).
- On January 11, I’ll present “The 3 Keys to Growing Your Hypnotherapy Practice” to the Greater Philadelphia Society of Clinical Hypnosis.
- Labor attorney Michael H. Rosenthal and I just completed an audio CD, “The Keys to Successful Interviewing and Hiring: Essential legal and psychological issues and strategies.” For a free copy of this CD just send me your mailing address. There are 20 available. In return, you’ll be asked to respond to a brief follow-up survey. Send requests to firstname.lastname@example.org.
- My brother Jon recently launched the new website/online portfolio of his firm, Weiman Design … check out his excellent web and print design work at http://www.weimandesignllc.com/
- My new Capabilities Brochure explains how my services help you create a leaner and more efficient company: https://www.weimanconsulting.com/extras/weimansolutions.pdf
Have a great rest of the week! To comment on anything you read in this month’s update send a note to email@example.com.
David A. Weiman, Psy.D.
Psychologist and Executive Coach
PS: The number for a confidential consultation about any business concern is (610) 642-3040.