what are businesses doing to help employees?

Yahoo announced today that they are laying off 10% of their workforce.  We all know we're in economic turmoil.  And companies are laying off.  Some stats say as many as 75% of people are worried about layoffs right now.  (I wonder if that number might be higher.)

What are companies doing to help employees cope at this time?  Are leaders communicating?  Are they hiding out?  Are they offering any support?  Or are they resorting to the usual tactics in a down-turn?

Are are they taking the attitude of Horst Schulze, who is continuing his quest to launch his new high-end hotel business, Capella.  Tom Peters wrote about this saying, that Schulze had commented:

"despite the market madness: "I do not accept the explanation of a recession negatively affecting the [new] business. There are still people traveling. We just have to get them to stay in our hotel." And, indeed, getting an "unfair share" of "what's left" is near the heart of the matter. Schulze's remarks also remind us that instant, mindless cutting of R&D or training or salesforce travel in the face of a downturn is often counterproductive—or, rather, downright stupid. Tough times are in fact golden opportunities to get the drop, and the longterm drop at that, on those who respond to bad news by panicky across-the-board slash and burn tactics and moves that de-motivate and alienate the workforce at exactly the wrong moment."

I like the "there's always opportunity" mindset, but also realize that certain decisions have to be made sometimes.  (Or sometimes, those decisions might be out of your control.)  But if your company is cutting R&D or training or sales travel or worse, laying people off, what are you doing to help support the employees who are still there?  They're frightened.  You can bet they're worried.  But there are things that leaders can do to communicate with employees honestly, while still allaying their fears somewhat.  After all, stressed and worried employees don't perform at their optimum level, do they?

Is your management team even talking about this?

I'm wondering what you HR folks are seeing out there.

all the best!

deb

Comments

[Wally Bock]

Good, probing post, Deb. When downturns come a business needs to concentrate on two things: survive the downturn and position for the upturn that will follow.

Historically the way to the first goal has involved cost cutting. The three areas most likely to be affected have been advertising, training, and headcount. Today, with people's knowledge and relationships as a powerful source of competitive advantage you have to look very hard at the last two to determine if they are, in fact, true cost reductions.

When I consider the Yahoo layoffs, I want to ask two questions. What else have you done to improve the bottom line besides layoffs? And, how did you decide with people would be laid off?