07

Apr

Layoffs not needed

Filed Under (Business) by Jason Monastra on 07-04-2009

Tagged Under : , , , , , , , , , ,

I am not sure how many articles I have read over the past months talking about the greed of the CEO and executive leadership even amongst the constant layoffs that our nation is experiencing.  In my reading of some of the other blogs, there was a discussion surrounding if there was a suitable alternative to layoffs.  I gave some thoughts however did not have a real practical or example of a company that has implemented cost cutting in the face of layoffs to reverse the trend..  One has surfaced.

Kevin Cullen from The Boston Globe writes about Paul Levy, the CEO of the Beth Israel Deaconess Medical Center and what they did in the face of layoffs.  Paul was faced with huge budget shortfalls and the pressure to make the numbers meet the targets.  With that, layoffs were proposed to the extent of removing more than 600 jobs.  Faced with a huge challenge, Paul did not play it safe but enlisted his most trusted and secure asset - his people.  All of them to be exact.  He went before the entire staff and told them this is where they are and what needed to be done to ensure financial health for the company.

People were more than enthusiastic and looked for increasing ways to reduce costs without costing people their jobs.  With the meeting, the offers for cost cutting was coming by the hundreds.  By the time it was all said and done, there were layoffs but reduced from 600 down to 150.  Look at some of the suggestions offered:

  1. Reduce the work week from 5 days down to 4
  2. No raises for the next 2 yrs
  3. Reduce company expense accounts
  4. Executive mgmt pay cuts
  5. Remove fringe benefits

It appears that there are suitable options to simply just layoffs.  With th. economic situatio. consistantly changing and having global implications, the simple approac. of just letting people go does not address how the world of business is changing.  With increased pressure to reduce costs, companies will need to enlist the assistance of the people rather than turning a deaf ear to them and just letting them go.

No Comments
Read More
01

Apr

Upside to unemployment

Filed Under (Business) by Jason Monastra on 01-04-2009

Tagged Under : , , , , , , , , , ,

DId anyone see the note about being unemployed and that offering a better perspective or nature for getting a job?  There was a comment made in the Harvard Business Review about it being a really great strategy.  I did not have the opportunity to read the article but just a few notations…however I find it quite odd that this was the position.  Looking for the good in all situations and that sort of hash is fine, but it being a good strategy - come on.

 

Position was similar to things happening more naturally when someone was not looking hard for it.  One of the examples was love - finding it when you are not so focused.  I think your perspective changes when it is not the sole cause of your life, but I do not agree with it being a strategy and even off the cuff support of that is damaging.  People need to have a plan and that includes diversity.  Job hunting, like anything, done on a sole note is not positive.  People become worn out, they do not operate efficiently, and bouts of depression and desperate behavior become common.  All huge turns offs when seeking employment.

 

So is there an upside to employment?  I would say yes….It does allow for the planning of ones career and efforts to align with long term goals since time that was not there has become available.  Perspective of being outside the grind is now opening up possibilities and ideas that were not previously seen.  All very positive things and a by-product of becoming unemployed and having additional time to review the situation carefully.  But thinking and planning will come to an end, and action will be required.  Process and a road map for the job hunt will be needed, making a focused mind a must have.  Unemployment could be good for a while (like a long vacation) but not a strategic must have when seeking new employment.

No Comments
Read More