Tag Archives: Layoffs

Sympathy for the Hatchet Man

Posted on September 29, 2009 | Leave a comment

layoff

I recently wrote an article for the Des Moines Business Record about the hard life Human Resources departments are currently having. In the article I point out that even though they may be the one’s swinging the axe, they are suffering almost as much as the person on the other end as well.

Article:

Living, breathing and working in the world of work brings continual challenges. The challenge of staying motivated at work is increasingly difficult when people around you are being let go all of the time. As soon as you start to feel safe and are able to once again focus on your work, another round of layoffs occurs, sometimes without any warning or sense of it coming.

Because work and life are so closely connected, they both become a struggle to get through, and any sense of joy or accomplishment can be sapped away. It is tough on the front lines.

For better or worse, I have an interesting vantage point. In my job, I am on the front lines viewing a lot of what is taking place. The one department in companies that I believe has it the hardest is one that you might not suspect. The human resources department may have the most challenging job right now.

To continue reading click here.

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Recession Wire Interview: The Confidence Game

Posted on August 25, 2009 | Leave a comment

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I was recently interviewed by Recessionwire.com for an article about confidence in interviewing. This is a great topic due to the amount of layoffs and the need for people to find work. When layoffs and job loss occur, coupled with no one calling you back after submitting your resume to dozens of job opportunities. Your confidence can take a visible hit, which can inadvertently undermine your job interview opportunities.

Article:

The Confidence Game

Mark Twain once wrote that the only things required for success are ignorance and confidence. If we humbly assume a good measure of the former, then the only thing needed for a successful job search is confidence.

Simplistic? Perhaps. But for those of us who awake each morning to face yet another day of launching resumes into the ethers and throwing ourselves at the mercy of old cronies or long-lost college cohorts who just might provide that magical, silver-bullet nexus of our LinkedIn fantasies, it can be difficult to crank up the old confidence meter to the appropriate level of chipperness. Each non-returned inquiry and “we’re not hiring right now” response is one more pinprick in the life raft of our confidence.

But let’s get real—sinking beneath the waves simply isn’t an option. That means we must meet each pinhole in the raft with a fresh wad of Double Bubble, chewed vigorously and confidently. Sure, you can hide in the closet now and then, shut the door, cover your mouth with an unused business suit and let out a primal scream or two. But then shake off the dust bunnies and get back in the living room.

“Everything you do, say, or write is a reflection of your confidence,” says Nick Reddin, business development manager for Manpower, one of the largest employment services companies in the world. “Your resume, cover letter, hand shake, telephone demeanor—everything should project that you are ready to take on the position you are applying for.”

In his position at Manpower, Reddin talks with hundreds of prospective candidates, both as an employment advisor and on behalf of employers. He says his instincts can tell when a candidate is been through the grinder and is starting to feel defeated.

To continue reading click here.

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Stabilizing Your Workforce Amid Layoffs

Posted on August 13, 2009 | 2 Comments

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If you look at the United States, the total number of mass layoff events was more than 23,000 in 2008, involving nearly 2.4 million individuals. In the United Kingdom, unemployment levels rose by 530,000 people over the three quarters beginning in July 2008. Some of the world’s leading companies are trimming their workforces due to the economic pressures of what we are now told by our elected leaders is a “deep” recession.

Indeed, a great number of companies are facing this challenge, but those with effective leadership are faring much better. So how can leaders stabilize the workforce to ensure that the inherent uncertainty in today’s environment and associated redundancies at their own companies aren’t divisive and disrupt business as usual? Businesses need to understand what it is that employees look for from their leaders, whether that be the senior team or the line manager.

Between 2005 and 2008, as part of a comprehensive study about why people follow leaders, Gallup collected information from more than 10,000 national adults (aged 18 and over) to obtain their opinions about leadership and why they follow. This research formed part of our larger study on leadership, including more than 20,000 in-depth interviews with leaders, behavioral research data from more than 1 million work teams, and polling results from 50 years of research.

In our follower study, respondents were asked to name the leader who has the most positive influence in their daily life. The word positive was included to ensure that we were not studying leaders who have a predominantly negative influence. Then they were asked to list three words that best describe what that leader contributes to their life.

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Is 2009 the Year of Shrinking Pay?

Posted on July 28, 2009 | Leave a comment

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More than one-third of U.S. employees report they have not received a raise this year or that their compensation has decreased, according to a Tell It Now(SM) poll by ComPsych Corporation.

“We continue to see increased call volume from employees who need help managing their finances in this challenging environment,” said Dr. Richard A. Chaifetz, Chairman and CEO of ComPsych. “Our customers, realizing the need for supporting and educating employees with financial information, have been promoting the EAP as a place to turn for help as well as scheduling personal finance seminars for their workforce.”

Employees were asked: Has the economic downturn impacted your work? If so, in which area have you experienced the greatest impact?

  • 39 percent said they haven’t received a raise or their compensation has decreased
  • 20 percent said there is more conflict/stress among coworkers
  • 11 percent said they are doing more work due to employees that were laid off
  • 10 percent said they are working more hours/unable to take as much vacation
  • 20 percent said it has not impacted their work

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College Grads Face Tough Job Market in 2009

Posted on March 12, 2009 | 3 Comments

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Seniors graduating from college this year will get diplomas, but they may not get jobs. Employers expect to hire 22 percent fewer new graduates from the college class of 2009 than they hired from the class of 2008, according to a new study by the National Association of Colleges and Employers.

The latest numbers also differ significantly from the fall, when employers’ hiring projections looked flat.

“Earlier, employers indicated that they expected to keep their new college graduate hiring levels even with last year,” Marilyn Mackes, the association’s executive director, said in a statement. “Our current survey shows that college hiring is as affected by the economy as other types of hiring.”

The drop in anticipated college hiring is part of an overall slack labor market, which has worsened rapidly amid the recession.

The expected decline in new-grad hires was prompted by the deteriorating economic situation, said the association, a professional group that forecasts trends in the job market.

“More than two-thirds of employers said the economic situation forced them to re-evaluate their college hiring plans, and nearly all of those said they have decreased their planned number of hires,” Mackes said.

The projected drop is likely to mean a sharp decline in employer activity on campuses this spring as well, with 66 percent of employers responding to the survey reporting plans to lower or eliminate spring hiring.

The latest association study also ends a string of positive hiring reports for new college graduates dating back to 2004. Students graduating in the early part of the millennium experienced major drops at the hands of the dot-com bust and the terrorist attacks of September 11, 2001. Hiring decreased 36 percent for the class of 2002 but steadied for the class of 2003 before rebounding in 2004.

Employers also seem cautious about the near future. More than 46 percent said they are unsure about their hiring plans for fall 2009, and 17 percent are already reporting that they expect to trim their college hiring further.

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February 2009 Employment News: The Good, The Bad & The Ugly

Posted on March 5, 2009 | Leave a comment

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The good news:

A report released by Challenger, Gray & Christmas said that planned layoffs at U.S. companies decreased by 23% from its peak in January. The report indicated that layoffs could remain particularly high in the automotive, manufacturing and financial sectors. Employers announced plans to cut 186,350 jobs in February, down from 241,749 in January.

The decline in job cuts last month offers some hope that January was the peak and we will now see layoffs begin to fall or at least stabilize,” John A. Challenger, chief executive officer of Challenger, Gray & Christmas, remarked in a statement.

…and the bad news:

The ADP Employment Report showed that 697,000 nonfarm jobs were lost in February as the U.S. recession continues, a wider decline than the 630,000 drop that economists had expected. It was the greatest number of monthly job losses on record.

…and the ugly tired analogy from yours truly:

So depending on your disposition this is good or bad news. If your glass is half empty then none of this is good news in any way. If your glass is half full, then planned February job cuts down 23% will have you dancing in the street to some degree. Or at the very least, a little Mamboing on your way to the kitchen.

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Laid-off Employees Grabbing Data by The Terabyte on the Way Out

Posted on March 3, 2009 | 1 Comment

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Sometimes employees walk out with more than their walking papers when they clock out for the last time.

A study by the Ponemon Institute found that more than 59 percent of those surveyed kept corporate data after leaving their jobs. The survey, which was sponsored by Symantec, included responses from 945 adult employees who had lost or left a job in 2008.

The most commonly stolen pieces of information were e-mail lists and non-financial business information, taken by 65 and 45 percent, respectively, of the respondents who took something. Thirty-nine percent admitted taking customer information such as contact lists.

Among those who stole data, more than half said they did so because they thought it would be useful in the future – for example, at their new job. Roughly 60 percent of those who kept data had an unfavorable view of their company, and thirty-seven percent of the survey’s participants said they left because they were fired. Thirty-eight percent, meanwhile, said they simply found a new job, while another 21 percent left because they were expecting layoffs.

Are they employees from hell? Maybe. But either way, Larry Ponemon, chairman of the Ponemon Institute, found the statistics surprising.

“I’m not sure that malicious intent and future employment are mutually exclusive,” he said. “Clearly the responses show that obtaining future employment was a significant motivating factor, but when we see a high percentage of individuals who took information knowing full well they were acting in violation of company policy, that hints strongly at the presence of malice.”

Sixty-one percent of the employees who stole business information took it in the form of paper documents or hard files. The next most popular method was downloading data onto a CD or DVD, which was done by 53 percent. Just fewer than 40 percent did it by sending documents as attachments to a personal e-mail account.

Equally troubling from an IT security perspective is that almost a quarter of the participants had the ability to access data even after they left the company, with 32 percent of these respondents admitting they accessed the system and their credentials worked.

“Most of this data loss is preventable,” said Rob Greer, senior director of product management for Symantec Data Loss Prevention. “While the majority of data loss is still due to accidental insider actions or broken business processes, this survey highlights preventable issues exacerbated by a slowing economy.”

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Workforce Metrics: Engineering Talent and Overall Job Openings by Industry

Posted on February 26, 2009 | Leave a comment

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Certain Uncertainty at Work

Posted on February 24, 2009 | Leave a comment

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This is an article I recently wrote for the Des Moines Business Record dealing with the current uncertainty people are feeling at work. I try to give some prescriptive measures to company managers and leaders in what I think are good ideas to help quell worker insecurity.

Article:

Preacher and author Leroy Brownlow once said, “There are times when silence has the loudest voice.” Of course, what he did not say is exactly what that applies to. Though I agree with him, I think there are some very definite positive and negative effects of being silent, especially in uncertain times. I think there are times when silence is needed more than a loud voice, and conversely I think there are times when a loud or at least a consistent voice is needed.

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IBM Sends Laid off U.S. Workers Overseas at Local Wages

Posted on February 19, 2009 | 1 Comment

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Employees laid off from IBM Corporation might be able to take advantage of a new program that keeps them employed in another division of the company. The catch? Employees must move abroad and start work with the regional division at local wages.

The program is called Project Match, company spokesperson Doug Shelton told The Industry Standard.

“For IBM, this is a unique creative approach to keeping some of those employees who have been affected,” Shelton said. “We’ve got about 400,000 employees in 170 countries and this is a natural move for us.”

The transition program, according to Shelton, is very similar to the company’s programs that help employees with other career transitions, into, for instance, teaching, government agencies and the non-profit sector.

Information Week reported that U.S. workers were being offered relocation options with IBM offices in India, China, Brazil, Mexico, the Czech Republic, Russia, South Africa, Nigeria, and the United Arab Emirates.

Shelton would not confirm the destination countries but said employees were being offered placements in several international locations. Compensation will be based on average local wages in the new location, he said.

A search on PayScale.com indicates that the average annual salary for a senior software engineer India with five to nine years of experience is about 605,000 rupees per year. That’s less than $15,000.

“It’s not a program that’s for everybody,” Shelton said. “Sometimes people are from another country, and this is an opportunity to get back to a home country with the support of IBM. It’s a win-win.”

Others potential candidates might be Americans in search of an adventure abroad, Shelton said.

So far, less than ten people have shown interest in the program.

Interested employees were asked to inform their managers, who will help find a job placement. Shelton could not provide more details since the program is still in infant stages.

The relocation offer was included in letters to employees that were being laid off on January 21st and January 27th.

This just seems so crazy to me, what about you?

HT: Sindya Bhanoo

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Posted in Retention, Workforce Trends

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Job Openings and Labor Turnover: December 2008

Posted on February 10, 2009 | 2 Comments

Well the December numbers just came out from the BLS for new hires and turnover for December 2008. As expected the news is fairly dismal. While I understand no one wants to hear any bad news, especially those looking for work it is at least good to be aware of the overall situation. Something to always keep in mind when looking at these types of numbers and charts is that not every area in America feels the recession in the same way. One spot of good news though is that the blue line which represents new hires is heading in the right direction. Hopefully that will continue (but keep in mind that this is for December).

What we see is that on the last business day of December, there were 2.7 million job openings in the United States, and the job openings rate was 1.9 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The job openings rate in December was the lowest point so far in the 8-year-old series. The hires rate was essentially unchanged in December at 2.9 percent and remains low. The total separations rate jumped to 3.7 percent, due to rising layoffs and discharges.

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The red line is seperations/discharges and the blue line is new hires. You can click on the picture to make it bigger.

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Hit the Road: Laid Off but Not Forgotten

Posted on February 10, 2009 | Leave a comment

Veriatas Logo

This is an article I recently wrote for Des Moines’s Veritas Magazine. With all the uncertainty around us, it is a good reminder to know that some things are unchangeable.

Article:

Let me start by first asking a simple question: Do you believe God has a plan for your life? Now, before you rush to answer, I want you to take a moment and search your heart. Do you really believe, in your heart, God has a plan for you? If you are not sure because of your current circumstances of unemployment or dissatisfaction with life, I have great news for you.

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Visual: Unemployment Rate by State in North America

Posted on January 27, 2009 | Leave a comment

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January 2009 Layoffs by Company at the Fortune 500 Level

Posted on January 21, 2009 | Leave a comment

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Layoffs for January 2009 at America’s 500 largest public companies:

Total 49,762

Jan. 16: ConocoPhillips (nyse: COP – news – people ) trims capital spending by 18%, writes off $34 billion and reduces workforce by 4% (1,300 jobs).

Jan. 16: Hertz Global Holdings (nyse: HTZ – news – people ) sets out for worldwide restructuring in first quarter of 2009; cuts 4,000 jobs.

Jan. 16: WellPoint (nyse: WLP – news – people ) reduces workforce by 600 and removes 900 open positions.

Jan. 16: Advanced Micro Devices (nyse: AMD – news – people ) reduces global workforce by 9% (1,100 jobs).

Jan. 15: Xerox (nyse: XRX – news – people ) cuts 275 jobs in New York region.

Jan. 15: MeadWestvaco (nyse: MWV – news – people ) fires 2,000 and plans closings or restructurings at up to 14 plants.

Jan. 15: Autodesk (nasdaq: ADSK – news – people ) expects loss from 2008 fourth quarter; pink-slips 750 (10% of workforce).

Jan. 15: Marshall & Ilsley (nyse: MI – news – people ) cuts 8% of staff (830) in ongoing cost-cutting.

Jan. 14: Ecolab (nyse: ECL – news – people ) restructures and reduces workforce by 4% (1,000 jobs).

Jan. 14: Delta Air Lines (nyse: DAL – news – people ) gives 2,000 early retirements as part of 8% capacity reduction.

Jan. 14: Motorola (nyse: MOT – news – people ) lays off 4,000 following a 3,000-worker layoff last year; expects savings of $700 million a year.

Jan. 14: Google (nasdaq: GOOG – news – people ) fires 100 hirers as it cuts back on contract workers and temporary employees.

Jan. 13: Cummins (nyse: CMI – news – people ) freezes salaries for the rest of the year and lets 800 go.

Jan. 13: Pfizer (nyse: PFE – news – people ) cuts 800 researchers as it lowers cost in the face of poor performance and coming patent losses.

Jan. 12: Mosaic (nyse: MOS – news – people ) fires 1,000 in Saskatchewan.

Jan. 12: Aircraft maker and Textron (nyse: TXT – news – people ) subsidiary Cessna sends 2,000 packing.

Jan. 12: Best Buy (nyse: BBY – news – people ) clears 12.5% of its headquarters staff with 500-employee layoff.

Jan. 12: Precision Castparts (nyse: PCP – news – people ) dismisses 40 as airline industry continues to struggle.

Jan. 9: Oracle (nasdaq: ORCL – news – people ) reportedly cuts 500 from U.S. sales and consulting businesses.

Jan. 9: Boeing (nyse: BA – news – people ) cuts 4,500 and returns workforce size to what it was in early 2008.

Jan. 9: Freeport-McMoRan (nyse: FCX – news – people ) slices workforce in half at Arizona mine; 1,550 workers let go.

Jan. 9: Smitfield Foods’ (nyse: SFD – news – people ) Butterball–the nation’s largest turkey company–fires 75 at Missouri plant.

Jan. 8: Union Pacific (nyse: UNP – news – people ) pink-slips 230 as company struggles; stock down 22% year-to-date.

Jan. 8: Navy shipbuilder Bath Iron Works–owned by General Dynamics (nyse: GD – news – people )–dismisses 179.

Jan. 8: Continuing company wide job cuts at Eaton (nyse: ETN – news – people ) hit Iowa, with 78 laid off.

Jan. 8: Walgreen (nyse: WAG – news – people ) cuts 1,000–roughly 9%–from corporate and field manager ranks.

Jan. 7: EMC (nyse: EMC – news – people ) fires 2,400 as it reduces 2009 expenses by $350 million.

Jan. 6: Alcoa (nyse: AA – news – people ) starts global salary and hiring freeze, plans sale of four non-core businesses and cuts workforce by 13% (13,500 jobs).

Jan. 6: Aqua Glass–a subsidiary owned by Masco (nyse: MAS – news – people )–pink-slips 30 employees.

Jan. 5: Cigna (nyse: CI – news – people ) reduces workforce by 4% (1,100 jobs).

Jan. 5: United States Steel (nyse: X – news – people ) cuts 50 jobs as it closes production lines in Texas.

HT: Forbes.com

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Visual: United States Unemployment Rates for Metropolitan Areas – Nov 2008

Posted on January 8, 2009 | Leave a comment

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Employer “Loyalty” not Impressive to Layoff Survivors

Posted on December 23, 2008 | Leave a comment

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Corporations are mistaken to think that employees who survive layoffs will “work harder out of gratitude,” according to a study by Leadership IQ. In fact, by their own admission, employees say their companies should expect less from them going forward.

The Washington-based research company says nearly three-quarters of employees who held on to their jobs amid downsizing acknowledge that their individual productivity is declining, while nearly seven in 10 say their company’s product or service lines are in decline since the layoffs. The research is based on interviews with about 4,200 workers at roughly 320 companies that have enacted layoffs during the past six months.

Other key findings:

• 87 percent are less likely to recommend their company as a good place to work.

• 64 percent say their colleagues’ productivity is declining as well.

• 81 percent claim customer service is falling.

• 77 percent “see more errors and mistakes being made.”

• 61 percent forecast “worse” prospects for their company’s future.

Coupled with an earlier Leadership IQ report, this paints a bleak picture for talent-hungry companies. It reveals that 47 percent of high-performing employees are actively seeking other jobs, compared with 18 percent of low performers and 25 percent of middle performers.

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Layoffs an Excuse to Shed Bad Hires?

Posted on December 9, 2008 | Leave a comment

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Nothing is as tricky for hiring directors as making the right employee selection from a field of applicants. Research released by the Washington-based Recruiting Roundtable underscores this point. It finds that either organizations or their newly hired employees wind up regretting their choice. The result: Employees are less committed to their new organizations, costing organizations millions of dollars in lower performance and higher turnover. The study aims to quantify the negative impact of poor hiring decisions. One key factor is that about 40 percent of new employees say the information they received when applying for the job turned out to be “less than accurate.”

The Roundtable study analyzed data from more than 8,500 hiring managers and 19,000 of their most recently hired employees. Three important reasons emerged to explain why companies consistently fail to hire high-quality candidates: “[Companies] over-rely on candidates describing themselves,” rather than forcing them to demonstrate their abilities; organizations don’t “follow a consistent, evidence-based selection decision process”; and employers “fail to provide the candidate with enough information” regarding the true nature of the job.

Hmmm,companies misrepresenting their job and candidates misrepresenting themselves – sounds like business as usual. That is one of the biggest problems when companies allow their managers to hire from “gut” feelings as opposed to any outside measurement of candidate suitiblity.

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Google in Trouble? Contractor Jail Break?

Posted on December 3, 2008 | Leave a comment

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Reports are surfacing that Google has begun eliminating some of its 10,000 contract workers, trimming expenses in the face of a declining stock price and slow online ad growth. Included in that number, according to several sources, including Daya Baran, president of The Web Guild, are 500 recruiters.

The company signaled in October during its third quarter financial presentation that it intended to reduce expenses. Sergey Brin, co-founder of Google, told The (San Jose) Mercury News, that the company had a plan to reduce its contract workforce by improving its vendor management, converting some contractors to employees and “other approaches.” “It’s really high,” the newspaper quoted Brin as saying of the number of contractors.

Google reported in its most recent filing with the Securities and Exchange Commission that it has 20,123 employees. Among the 10,000 contractors are cafeteria workers, bus drivers, groundskeepers, off- and on-site programmers, and technical workers and others.

In a CNET story this week, Google spokeswoman Jane Penner didn’t provide a specific number of the contractors to be let go, but was quoted saying, “We have 10,000, and we have had a plan in place for awhile to significantly reduce that number.”

While the news may be hitting contractors hard, it’s creating opportunity for recruiters. A few have started posting contact information on sites where stories about the layoffs are appearing.

As for the laid off recruiters, one person posted to the Web Guild blog that they signed non-disclosure agreements prohibiting them from discussing their work with Google and, presumably, the terms of their termination.

Click here: Forbes also has some inside dirt on what is going on in case you are interested.

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US Employees Earn Least Amount of Severance

Posted on December 3, 2008 | Leave a comment

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A new global study by Right Management has found that employees laid off in the United States earn the least amount of severance pay worldwide – no matter what level of employee or amount of tenure with the organization. Right Management is the world’s leading provider of integrated human capital consulting services and solutions across the employment lifecycle.

The global study across 28 countries draws from more than 1,500 responses from human resource professionals and senior managers responsible for making severance decisions in their organization, including 456 from the United States. US-based employees consistently earn less severance per year of service than colleagues around the world. Top executives earned as little as 2.76 weeks of severance per year of service, compared to a worldwide mean of 3.39 weeks per year of service. The disparity increases as the level of employee decreases.

To continue reading and see all of the study results click here.

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A Visual of the Employment Slump

Posted on September 3, 2008 | Leave a comment

Original Source: Business Week

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