Other Alternatives to Layoffs
A recent Wall Street Journal article looked at several companies, both public and private, that don’t resort to layoffs in bad economic times. As noted in a post I did yesterday, pay cuts are one alternative. The Journal article provides a few more.
Employers that take alternatives seriously have a “no-layoff policy.” It’s part of the employers’ social contract with their employees. These employers must, therefore, find other ways to deal with economic trouble.
Here are some of the alternative things they do: eliminate overtime; cut hours; cut temporary staff; delay facility expansions; transfer employees to busy departments from those with less work; bring outsourced work in-house to keep workers busy; freeze hiring; offer voluntary retirement packages; delay raises; shift blue-collar workers into white collar jobs; and cross-train workers so they can be redeployed.
The Journal article also outlines the long-standing debate over the value and/or damage of layoffs compared to their alternatives. It’s a debate layoffs are clearly winning, but there are genuine alternatives worth considering.
About Chris Parker
Chris Parker's practice focuses on the representation and counseling of companies in matters pertaining to the workplace and the protection of their intellectual property and trade secrets. In addition to serving as an advocate for clients, Mr. Parker is also trained as a mediator and frequently serves as a third-party neutral.
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About Jimmy Daniel
Jimmy Daniel provides counseling to businesses of all sizes related to the employment relationship. He assists in the drafting of employment agreements, policies, and handbooks, as well as provides guidance related to compliance with federal, state, and local legislation such as the Fair Labor Standards Act and the Family and Medical Leave Act.
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About Larry Bridgesmith
While serving in an Of Counsel relationship with the firm, Mr. Bridgesmith also serves as the Executive Director at the Institute for Conflict Resolution at Lipscomb University and as an officer and principal in Strategic Resolutions Group, LLC. In these roles, Mr. Bridgesmith brings over 30 years of legal experience in dispute resolution and innovative workplace strategies to clients, students and business entities alike.
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