leadership incorporated blog

June 2, 2009

Devastating Mistakes Businesses Make in This Economy: #2

Forgetting the impact exiting employees have on the well-being of the company. Businesses can’t afford NOT to transition exiting employees. Why? • Disgruntled ex-employees can do a lot of damage to current client relations and retention, not to mention undoing all the time and money spent on building a positive corporate image. • The cost of litigation will always far exceed the preventive investment in outplacement. • Productivity of the survivors is dramatically affected by an insensitive layoff. • In times like these, a business needs its retained employees to rebuild. An insensitive layoff can cause them to jump ship or undermine from within. • A relatively small investment in a smooth transition can prevent much greater costs.

Solution: Retain external offboarding support. In general, employees who are leaving do not want to have conversations about their futures with internal employees and will often not take advantage of internal programs.  While large outplacement firms may be better able to service large numbers of employees, smaller firms can deliver more personalized service for a significantly smaller investment.


June 1, 2009

Devastating mistakes businesses make in today’s economy: #1

Cutting with a blowtorch instead of a laser. In the epidemic rush to cut staff, it’s shortsighted to let essential talent go. As a result, over 50% of workforce adjustments do not achieve their intended objectives. Too often, the company finds itself without the resources to recover and build for the future.

Solution: Think before you cut. Don’t automatically assume that a layoff is the best way to reduce operating costs. And don’t offer incentives for leaving. The best people will go, knowing they can find other work. The weakest will remain.

Sharon Rich is the founder of Leadership Incorporated and Layoff BounceBack. Her companies offer coaching and training programs designed to empower organizations and individuals in transition to create successful futures.

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