Understanding Layoffs Mike Hake Intisar Khanani Monique Box

Understanding Layoffs Mike Hake Intisar Khanani Monique Box Wes Kepler Jeff Brunson

Overview Disadvantages of Layoffs Alternatives to Layoffs Advantages of Layoffs When Layoffs Are Done…

Disadvantages of Layoffs Short-term to response to an ailing economy Inappropriately conducted n Across the board layoffs Seen as the solution to business problems

Disadvantages of Layoffs 50% of employees experience decreased morale 41% of employees experience a decreased sense of loyalty 27% increase in resignations 70% of layoffs do not result in increased profits (Turner)

Alternatives to Layoffs “Layoffs are disrupting and difficult for everyone; most organizations are taking steps to avoid them if possible. ” n Helen Dinan, Society for Human Resources President and CEO A number of alternatives exist

Alternatives to Layoffs Natural Attrition Voluntary Early Retirement Employment Freeze Work Sharing Benefits: maintaining ee morale, loyalty, and commitment while increasing productivity.

Advantages of Layoffs Investors will be pleased Stock prices typically rise Rising stock prices increase shareholder value

Advantages of Layoffs Businesses can get the same product with fewer workers n Labor costs will be lowered Technology is saving companies $ n Increased automation

Advantages of Layoffs Organizations are seen as in tune with current business practices Profits can go up Productivity can go up

When Layoffs Are Done… Interview with Bill Mc. Gowen, Sun Micro. Open lines of communication Treat employees with dignity Offer post-employment services “Layoffs are painful but effective. They are due to poor performance management, but they allow the company to restructure. ”

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