Just Say No To Layoffs

A Wall Street Journal article looks at businesses that are bucking the trend of laying off employees first and thinking about the consequences later. Interestingly, all these businesses are relatively small. So much for the notion that a big company can weather an economic crisis better than a small one. Big companies are at the layoff vanguard, and they’re not done. (Click here for a post with links to other posts on the subject.)

Some small companies have no-layoff policies, giving more than lip service to the oft-heard slogan, “Our business is our people.” The no-layoff policy is used to attract and retain workers. It’s a matter of pride, not to mention good business.

These companies believe they have good employees, the economy will bounce back eventually, and they’ll need good employees then more than ever. Executives and owners take a more significant reduction in pay than they ask their employees to take, sometimes taking no pay at all for a while.

Employees take mandatory days off without pay, although some are allowed to use vacation. Expense cuts are made everywhere possible to save jobs. When employees do their jobs without working overtime, they are rewarded with, say, a free massage, something cheaper than overtime. Employees are the first to be asked about ways to cut costs. When there’s not enough work for every employee, some are sent to do community volunteer work with pay, leading to new business from companies who take note.

Layoffs are unavoidable, even for employers who try everything else first. But not the kind of layoffs we’ve witnessed for months now. When the powers that be tell you to organize a layoff, just say no — and come up with a better way to meet the company’s needs and keep your employees working.