brownbaggermarch09

Brown Bagger

This section is set up to provide a ready-made Brown Bag Session for you to use with employees and/or managers. Use as is, or adapt this information for a general employee group. You may reproduce as many copies as needed.

Best Practices for Handling Layoffs & Downsizings in the 21st Century t’s no secret: The economy stinks, and an estimated 6.7% of the population is out of work.

No one enjoys looking for a job, even in the best of times. Certainly, downsized employees feel the effects of a sluggish economy the most.

But also affected are the leaders who must “do the dirty layoff deed” (few of whom relish firing people in theatrical Donald Trump-style), the remaining employees, and the company as a whole. Consequently, this article will present advice for the EA professional in working with the employee — and the employer.

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than it would cost you. You can also ask for one year of career coaching and the right to select the coaching service. People often underestimate how much time it will take them to find a new job, so they accept cash for the entire settlement. The reality is the time in between jobs can be far less worrisome when your health insurance is covered and you have career coaching to help you stay positive and find a great new job. Cash may ease the pain in the short term, but these other benefits will be crucial if you are looking for a job for a long period of time.

Employee Recommendations Job hunting is a process fraught with stress, rejection, and tedious legwork, according to Richard Bayer, chief operating officer of The Five O’ Clock Club, a premier career coaching network. “But with a smart strategy for handling your finances, managing your time, and executing your search, you can turn what could be a full-on disaster into merely a bump in the road.” The following are Bayer’s tips to help survive (and even thrive) after a pink slip has been issued:

3 Don’t take it personally. Layoffs are usually the result of budget cuts and lack of business — and not a direct result of poor performance. Regardless if you are the company’s most recent hire, or if your department is being cut out all together, your position can be in jeopardy regardless of how well you’ve done your job.

You’re being laid off because your employer is having trouble in a tough economy — which doesn’t mean that you can’t still be a valuable employee to someone else. In fact, 78% of the unemployed people who belong to The Five O’ Clock Club get a job whose salary is equal to or more than their previous pay.

3 Negotiate the best possible severance package. (Hint: Don’t automatically go for the cash!) There are two keys to getting the best possible severance package. First, whether it’s the cash settlement or career coaching benefits, negotiate each item individually. This will give you more leverage. Second, decide what you want out of a severance package, without regard for the company’s policy. Many employees simply don’t know what they can ask for in their severance talks, so it pays to research this issue and give it some careful thought.

When you approach the severance issue, think of what will benefit you in the long term. Health insurance, for example, costs the company less March 2009

3 Make finding a new job your “job.” If you are used to being in the office from 9 a.m. to 5 p.m. every day, it can be daunting to suddenly have all this unscheduled time on your hands. Job hunters need to maintain structure and some sort of day-to-day routine. A great way to do this is by using your old work hours to focus on your job search. Join trade organizations, schedule interviews, and network as much as possible. An unemployed person should spend at least 40 hours a week on his or her job search.

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Brown Bagger 3 Manage your money responsibly.

Regardless of whether you receive severance pay, the way you manage your money immediately after being laid off will determine your worry level. If a cash settlement is part of your severance package, you might be tempted to maintain your current living status while you look for a new job. However, that money can disappear quickly — especially if you are left to pay for your own benefits. Most people are surprised how long it can take to find a new job. Create a budget so that you can see how long you can live off of your severance pay.

If you didn’t receive any severance money, you’ll still want to create a post-job budget as soon as possible. Examine how much money you have, which bills are coming due, and what expenses you won’t be able to cut. Make sure you can pay your critical bills — mortgage, car payment, etc. — and don’t spend money on anything extra. You may have to cancel an upcoming vacation or get rid of your cable TV, but you will be glad in six month’s time that you didn’t rack up credit card debt and that your savings is still intact.

3 Expand your job search. Just because you worked for a large corporation in a large city doesn’t mean that’s the only type of job you are qualified to do. If you are searching only in Los Angeles, for example, think of looking outside the city or even in a different state. Or if you are looking only at large public corporations, consider small or private companies.

Personal talents can lend themselves to a variety of different job titles — you just have to be open to them. Looking for a job outside your comfort zone can lead to unexpected opportunities.

3 Don’t be afraid to be picky. When the bills keep rolling in and paychecks have stopped, it can be easy to panic and take the first job that’s offered. Hold your ground and don’t settle for a job that’ll leave you miserable over the long haul.

However, if cash is needed now, be willing to accept a temporary position that’ll give you a steady paycheck to hold you over until a better job comes along.

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3 Start your own business. Are you a prolific writer or a graphics guru? Use your business savvy to start freelancing while you’re searching for a new job. It can provide a cushion of income in between jobs and maybe even continue to supplement you once you’ve landed a new gig. Even better, the business will keep your skills sharp and provide great references for your résumé. It will show a potential employer that you are motivated and that your skills are desirable.

Employer Recommendations While there is little “good news” to be found in a layoff, an employer can minimize the bad news. Handling terminations the right way will not only help separated employees make the best of a bad situation, it will calm the nerves of coworkers who didn’t get the ax — and salvage public opinion of your organization. The following are some tips on how you can learn to terminate with dignity at your organization: 5 Put your policy in writing. An impulsive, “letting the chips fall where they may” approach has no place in a proper termination policy.

Termination procedures must be imbedded in a written policy and, over time, instilled in the organization’s culture.

5 Train managers in compassion. Great sensitivity is required when people are going through a termination process. Organizations have long trained managers to improve their hiring and interviewing skills. This enables them to be more astute in selecting candidates and more aware of legal pitfalls. The same degree of training should be given to managers for the hard task of letting people go.

5 Similarly, help people keep their dignity.

Employees who have been damaged by the termination process may be ill-equipped to grapple with the emotional aftereffects that may come next. Kindness can’t salvage the lost job, but it may help the employee maintain the confidence needed to find a new one.

Saying a nice word plays a critical role in helping people keep their dignity. Conversely, the lack of kind words eats at people and erodes morale. The guiding norm, at the very least, should be “to do no harm.” In a downsizing or March 2009

merger, it is easier to assure people that this is a no-fault situation. To keep it positive, you might say to an employee: “George, you’ve always been a trooper; you helped us for 15 years, and I’m sorry that the organization has moved in a different direction.” Or, “Mary, you have excellent people skills and have added a lot to the group.”

5 Be upfront about why this is happening.

A great deal of what happens next depends on how people receive the news. Anyone will want to know: “Why is this happening to me?” Any organization should be prepared to explain, at least generally, why it needs to cut staff, merge, or close. A good general rule is to be as open, honest, and sensitive as possible. People are more likely to feel empowered if they understand what went wrong.

5 Prepare a fair severance package, and be ready to explain it to employees. Most of the news we hear about severance packages concerns an overpaid CEO getting a huge check on his way out while other employees receive little or nothing. In today’s business world where reputation is key, corporations need to make sure they’re allocating their severance pay fairly. It’s an important factor in terminating with dignity.

This presumes that the package will include severance pay (when possible), ongoing career coaching, and in-house counseling to help separated employees come to an understanding of what combination of severance pay and support services is appropriate. A full explanation of these benefits should be handed to the employee in writing at the beginning of the meeting.

5 Avoid “sudden death” discharges. While there may be no way to eliminate the element of surprise, there are ways to reduce shock and humiliation in the wake of a downsizing that has been a closely guarded secret. Except in the most unusual of circumstances, there is little justification for “sudden death” discharges (i.e. abruptly telling an employee he is being let go and that he must immediately leave the premises).

We’ve all heard the horror stories where fired employees are escorted from their desks to the door by security. In these cases, the person is

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Brown Bagger treated as a threat. The trusted employee has suddenly become a danger. This creates humiliation and resentment. There’s a better way: Present the option of a decompression period — a sort of two-weeks notice issued by the employer in which the discharged employee would have the opportunity to finish tasks, complete projects, make arrangements for keeping in touch with coworkers, and perhaps most importantly, know he has a definite paycheck coming in for the first two weeks of his/her job search.

5 Assure employees that you’ll be a good reference for them. Since the primary rationale for termination with dignity is to empower the employee and enable him/her to move ahead with his/her life, letting the individual know you’ll put in a good word for him/her when a future employer calls for a reference can play a crucial role.

For years, organizations have believed that references can translate easily into lawsuits.

Consequently, most employers do little more than verify the dates of employment. The result, of course, is that information is sought informally and travels by the grapevine — increasing the chances of rumors damaging reputations and careers. It’s worth the effort to convey good news about former workers to prospective employers.

Summary For the employer: If it appears you aren’t treating laid off employees properly, consumers will think twice before buying from you again, and the best talent will think twice before applying for a job with you later. You must terminate employees with dignity, or your actions will come back to haunt you.

For the employee: Think of a layoff as an opportunity to improve yourself and to make a fresh start. You can end up better off than you were before you got the ax.

Dr. Richard Bayer is also the author of “The Good Person Guidebook: Transforming Your Personal Life,” $14.95, Five O’ Clock Books, 2008, ISBN: 978-0-944054-16-1, available at www.amazon.com.

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Brown Bagger H A N D O U T For Employees: More Secrets for Surviving Job Loss 1) Keep your spirits up. An alarming number of job hunters are becoming discouraged and dropping out of the job market. Remember that many people are going through what you are. A great way to get advice on how to handle being out of a job is to join a job-hunting group to get support, ideas, and contacts.

2) Develop new skills. If you suspect your old skills are out-of-date, take time to develop new ones. If you’re being told you aren’t being hired because you don’t have the right experience, get the experience. Depending on your area of expertise, there are lots of great ways to hone and expand your skills. Take a class. Do volunteer work. The point is to do something.

3) Become a skilled job hunter. Good job hunters know what they want, what the market wants, and how to present themselves. Having a well-written résumé and cover letter are key to being competitive. A poorly crafted résumé or cover letter can prevent you from getting your foot in the door, particularly in an economy that is flooded with people looking for work. If you don’t think that your résumé and cover letter are up to par, find someone to help you write them — and/or consult a resource such as the Encyclopedia of JobWinning Rèsumès, Third Edition, by Myra Fournier and Jeffrey Spin, $16.99 retail, Career Press, www.careerpress.com.

Source: Dr. Richard Bayer, COO of the Five O’ Clock Club and author of “The Good Person Guidebook: Transforming Your Personal Life,” $14.95, Five O’ Clock Books, 2008, ISBN: 978-0944054-16-1, available at www.amazon.com.

For Employers: Tips for Smart Cost Cutting ometimes companies and other organizations overlook the fact that layoffs aren’t the only cost-cutting measure available to them.

Before automatically letting people go, consider the following cost-saving tips:

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1. Cut management perks. Clearly, perks like these should be the first to go — including salary reduction and bonus cancellation. It sets the tone, leads by example, and sends the message that “we’re all in this together.”

2. Cut expenses. Cut unnecessary travel expenses whenever possible. Use phones, conference calls, and video conferencing as alternatives.

3. Seek solutions from staff. Ask people to come up with their own cost-cutting ideas, and reward them when they do. It is a very effective teambuilding process.

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4. Review staff salaries and benefits. Do this carefully, and make sure everyone is “sharing” the cost of health care.

5. Consolidate. Multiple offices, locations, etc., need to be reviewed for their contributions to profits. In many cases, terminating leases and closing of multiple locations stops the bleeding of expenses.

6. Don’t mess with morale. Never, under any circumstances, cancel an office party, rewards ceremony, etc. Rewarding employees and lifting their morale costs little. Gestures of thanks and appreciation keep employees loyal during trying times.

Source: Paul Facella, CEO of Inside Management (www.insidemanagement.com), and author of “Everything I Know about Business I Learned at McDonald’s”, McGrawHill, 2008.

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