October 30, 2009

The Layoff

Posted in Uncategorized at 6:08 pm by ctennert

Obviously layoffs are not easy for anyone.  They are not easy for the people administering them, and certainly not easy for the victims.  This article touches on how the thought process works between the HR Director, Financial Director, and CEO of a retail company, when they realize they need to downsize.

The Financial Director is about the bottom line.  He comes up with a last in, first out layoff strategy, that seems to be the most humane and fair.  The HR Director tries to steer him in another direction, trying to persuade him NOT to lay anyone off, but maybe cut spending in other areas to keep their employees safe. 

There is some tension about what exactly to do with this company to save their bottom line, and it is interesting to see a numbers-guy and a people-person interacting to decide what is best for the company.  The bottom line is, no matter what this company decides to do, it will not please everyone.

My recommendation would be to try and save jobs at all costs, just as the HR Director advices.  Human capital is very important, especially when you have employees such as the ones described in this article.  Their employees are smart, outgoing, and dedicated, so to get rid of these assets would throw the company’s moral into a downspin, therefor hurting productivity among the employees who kept their jobs.

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