A Summary Of What Not To Do

Before proceeding to the headcount solution, leaders must understand the risks of falling back on the tantalizing allure of old solutions. Here’s what not to do:

1. Don’t get rid of the wrong people. Move too quickly by the old rules for layoffs, and the company might fall into the trap of letting the wrong people go. Corporate heads may only realize this as business returns and the firm lacks that talent pool. The company goes to rehire and has to pay a lot more to find the right staff, if the right people are even available.

2. Don’t lose proprietary intellectual capital. There are hidden costs of company-specific training that are lost when knowledge staff is cut.

3. Don’t invite revenge. Some disgruntled former workers dismissed from their jobs try to get revenge and retribution. Laid-off staff have been known to hack into computer systems and destroy customer records. In one case a former employee created a customer relations nightmare by blanketing the customer base with embarrassing e-mails. Don’t invite revenge by implementing layoffs mechanically and heartlessly. Take the time to communicate to the organization why layoffs are unavoidable and treat laid-off workers with respect.

4. Don’t let fear and isolation take over, which is a sad but common executive response. Focus your attention on restoring profitability and saving the organization.