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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
A Few Small Words, But Big Legal Problems
by edwardnavis
While most of us were either sleeping or partying on January 1st of 2009, a new law went into effect that dramatically increases your chance of getting hit with a very expensive lawsuit. The American with Disabilities Act (ADA) dictated to employers that it was illegal to discriminate against an employee or candidate because they had a disability. The ADA Amendments Act (ADAAA), which became law at 12:01 AM on New Year’s day, did away with a few specific and critical words previously in the ADA. Previously, a disability had to be “substantially limiting” of “major life activities” before the courts would consider it a true disability, and therefore worthy of protection under the ADA. Now, the standard for ADA classification is much lower. There are other changes as well. The ADAAA’s definition of “major life activity” is substantially broader than that of the old act. In short, this means that there are more opportunities to get sued. And the change came during a tough economy, an historic hotbed for increased employment litigation. The answer? Just like sexual harassment and discrimination prevention training, include ADAAA training on your annual list of “must dos”. With a little creativity, you can make it a short affair that employees actually enjoy and learn from. Be sure to contact me for more information: 973-256-3757 or ed@FullSpectrumHR.com. The web site is http://www.FullSpectrumHR.com.