Downsizing for Survival – (Part One)

Any one who has ever been in  business consulting knows that one of the basic problems most enterprises face is ‘Over Staffing’.

Governments are famous for this; although many private companies run them a close second.

The Business model of 1890 has survived in many situations, only changing at bankruptcy, take overs, or when they owners (gasp) actually listen to the Trouble Shooters.

Not taking advantage of technology, because one needs workers in eye shot, or having useless positions, (i.e. too many managers) is another constant, but the biggest problem when a company is in trouble, (outside of someone running off with the assets) are too many employees.

Voluntary Redundancy — A Very Bad choice

In every company which has implemented a Voluntary Redundancy Exercise,  (VRE) the best workers have shot out of the building as if it were on fire.

This is because;

a) the best employees have usually rebuffed offers from other companies. And regretted it.

b) they can create their own businesses

c) they are bright enough to get off what they see as the Titanic.

 

In every company that has implemented a VRE the worst employees remain.

This is because;

a) no one wants them

b) they couldn’t run a lemonade stand

Related Post

c) they don’t see that the ship is sinking

Never implement a VRE until after you have recontracted the best workers.

Pick out those you want to keep and interview them before you even hint that there are going to be job cuts (between 60 and 30 days before the axe).

Make it kind of a ‘casual’ discussion to ‘take the temperature of the business.’

Some will stay with higher pay, better conditions, maybe a promotion.

Some are looking for an excuse to leave.

Those who you can keep are blessings.

Those who are leaving give you the opportunity to either find a replacement from the floor, (and you do this within 24 hours, of learning who wants to leave) or you do headhunting.

To Emphasize how dangerous a VRE is, in one Cell Phone Company an entire department voluntarily resigned.  The company virtually got on its knees to beg them to stay.

Company had not known how dissatisfied its staff was. (I’ll give some details later).

When it is time to cull your staff, hand pick those you want to get rid of.

 

In the next article I’ll give you a few tips on how you make your selections.




  • kaylar

    Recent Posts

    Heart Attack Causes and its Solution

    What is the Main Cause of a Heart Attack? What is its Solution? A heart attack is the blockage of… Read More

    12 months ago

    Understanding the Debt Ceiling: Its Impact, Importance, and Implications

    In the vast economic arena, one term that often takes center stage, inciting extensive debates and discussions, is the "debt… Read More

    1 year ago

    De-Dollarization: The New World Order of Currency and Its Global Impact

    De-Dollarization: The Changing Face of Global Finance The financial landscape is in a state of flux, with an intriguing economic… Read More

    1 year ago

    Unstoppable Bayern Munich: The Story Behind Their 11th Consecutive Bundesliga Title

    The curtains closed on a dramatic Bundesliga season with Bayern Munich standing tall once again, clinching their 11th straight title.… Read More

    1 year ago

    Celine Dion Cancels Concert Tour Due to Deteriorating Stiff-Person Syndrome

    The Unfolding Story of Celine Dion's Health In recent news that has left fans across the globe stunned, iconic singer… Read More

    1 year ago

    Navigating the Crossroads: LeBron James, Anthony Davis, and the LA Lakers’ Uncertain Future

    As the echoes of the recent NBA season start to fade, the attention of enthusiasts is firmly glued to one… Read More

    2 years ago