Another Example of Layoff Alternatives
I’ve blogged my heart out about how layoffs are a bad employment and business strategy. Occasionally, I’m encouraged to learn there are employers that agree with me, like the companies (mainly small businesses) I did a post on back in March. Another example was reported by the Los Angeles Times.
The Times article focuses on another small business, Primary Freight Services, that’s determined to weather the recession without layoffs. That doesn’t mean there’s no pain, only that the company expects its business to come back and wants its good employees to still be there when the come-back occurs.
The owner, John Brown, has cut pay and hours 20% to a four-day workweek. To offset what can still be a morale killer, he has written personal letters to all employees explaining what he’s doing and asking for their help. He’s provided training to the entire workforce about dealing with stress and anger. He gives regular progress reports to all employees. He no longer takes a pay check.
This company and its owner subscribe to what studies show about the impact of layoffs: businesses that choose alternatives outperform their competitors that resort to layoffs. In fact, despite what we’re inclined to believe based on media reports, layoffs aren’t the most common cost-cutting tool. Rather, the most frequently reported measures taken are cutting travel expenses and freezing or reducing hiring.
Mr. Brown also takes the culture of his company seriously. “My business would have suffered because it would have given the impression that it’s all about the numbers and not the people. We were just trying to stay true to our culture as well as get through these tough times.” After a dreadful period, sales seem to be coming back. Brown gives the attitude of his employees all the credit.
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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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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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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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Kudos to Mr. Brown and his decision to try anything to avoid a layoff. If only some of the larger companies in America could see their employees as more than just a number!