Layoffs Are A Challenge To An Opportunity.
No one looks to receive the infamous “pink slip, or “severance package”. Welcome to the year 2009. Layoffs are becoming more prevalent especially from companies deemed “rock solid”. Company profits and positive financials have taken an economic hit and remedial actions (layoffs) are being implemented. As we aware, labor costs are a main contributor to operating expenses and thus, in turbulent times, are the first to go. For a company having to exercise these labor reductions, an overall benefit can be realized: a challenge to an opportunity.
Through time, an established company grows via labor, benefits, services provided and thus, can get to “heavy”. Companies can find themselves hiring labor to handle operation issues when internal resources are readily available. Because of growth, financial wellness and a perception that more labor is needed, additional labor costs are justified. Yet, when one takes a look at the output versus input, the ratios define a reduction in productivity and an increase in operating costs. Conclusion: the company must sell more product or services to sustain growth rates, profit margins and internal confidence.
I say get back to basics! When companies lay off team members, they are doing this reduction because they have to. Layoffs are a disruptive action, taken only when necessary. The effect, however, can be more positive than negative.
“Heavy” companies can get back to an efficiency and effective level that identifies waste, redundancy, lapses in service and areas for improvement via team member training, production, and commitment. The enhancement in efficiency and overall effectiveness is a recipe for reengineering an operation in order to manifest a team cohesiveness predicated on pride, commitment, output and financial viability. Keep in mind, consumers will always seek out the product or service that provides the “best-bang-for-the-buck”. Companies that are able to control their operating costs and offer consumer value will always be a contender in their market.
Conclusion: If layoffs are inevitable, it behooves the company to develop a strategic plan that will identify remaining resources and create a utilization program that reengineers processes, procedures, team member roles/responsibilities, sales and marketing, feedback and monitoring methods and the ability to adapt or change when opportunity presents itself.
Layoffs are a challenge to an opportunity!
To learn how we may assist you, contact The Burda Group .
