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Avoiding the "D" word: Downsizing!
The trend in American businesses to downsize when times get tough has (again) begun its ritual backlash.
According to the Society for Human Resource Management, the world’s largest professional HR management association, companies that have laid off employees in the past are now experiencing unwanted, increased attrition among their highest performers.
In addition, there’s always a ripple effect that accompanies layoffs. Remaining employees produce less over the long haul because they are upset and frightened by their colleague’s departure.
Try alternatives to downsizing. Ask your employees to help you save money. Go to a four-day work week for a while: it will slash your payroll by 20% and your employees will be more likely to stay. Create an arrangement with other companies to “loan out” your employees for a limited period.
The American workplace has experienced this phenomenon over and over again. We are continually “surprised” by the economic downturn and therefore aim at the biggest target (payroll) to reduce costs. As a result, our businesses barely survive the downturn and take longer to “get back on their feet.” That’s the best case scenario. The worst case scenario is that of an otherwise vital business sinking beyond redemption because its executives did not hire strategically, prepare for downturns before they happen, or explore alternatives to downsizing.
For more information, go to http://www.FullSpectrumHR.com
Danger: Beware of EFCA!
by edwardnavis
There was once a time when the National Labor Relations Board (NLRB) required a fair and confidential election before allowing a union to represent your employees. Soon these elections will be a relic of the past.
While still a senator, President Obama co-sponsored a bill (Employee Free Choice Act, or EFCA) allowing unions to claim victory simply by getting employees to sign a card requesting representation. And he has promised to sign it into law now that he's in the White House.
Currently, a union must obtain signed cards from 30% of the employee body to demand an election. EFCA will change that. Soon, they will need nothing more than signatures from 50% plus one employees. Once obtained, unionization is mandatory and your employees do not have the ability to vote in a free and confidential election.
Unionized organizations historically struggle to maintain a reasonable bottom line. Union contracts promote mediocrity in performance, limit a business owner’s right to manage the company, and add expensive bureaucracy to daily business practices.
Unions notoriously use lies and strong arm tactics to get these cards signed. Employees would traditionally sign them to get the requesting representative to stop bothering them, and then vote against the union in secret ballot. But with the removal of the secret ballot proposed by EFCA, unionization is just a few signatures away.
The best way to avoid unionization is to become your employee’s best advocate. Learn to trust them and help them trust you. But this is easier said than done. I began my HR career by fighting unions, so I know that the employee’s attempt to organize is usually in response to management that does not have insight. It is, I believe, an organizational temper tantrum.
It’s easiest - and now imperative - to fight unionization before your employees start to talk about it. For more information, read PeopleThink. You can order a copy at www.FullSpectrumHR.com/books.html