Layoffs, think twice, act once….

Here we go again. Our genius executives at work, once again, with more layoffs. We all know the routine. When a new CEO comes on board they either: A) Centralized operations, or B) Decentralize operations. Check. Then if times get bad, lay people off. Check.

Let’s add one more: Organize your company offshore so as to avoid paying taxes to the one country that allows your organization the stable environment it needs to grow, you know, the one with all the laws regarding property ownership, the one with law enforcement, the one that paid for your company to grow, yeah, that one. Check, and double check.

On to layoffs, since that is the popular move of the day. Before considering layoffs, do any executives consider they may need these employees in the future? No, really, have they considered it, before they let loose all that training and talent they have been working on for years. I don’t think so. If they did, they would be offering more employees part time work during the slow period, job sharing, reduced hours, forced shut downs, etc. Did they even try any alternatives before a massive layoff? I didn’t think so.

Often times a layoff is required, especially when a business is declining and has no hope of regaining market share, or when productivity is so much higher fewer people are needed (as with the automotive industry). But more often than not, layoffs are a short term solution to a short term problem, with long term consequences. We have had enough of short term solutions from our Corporate Executives and it is time to demand more critical thinking from them.

I am not suggesting “charity” here. I am suggesting that Executives start being smart. Don’t simply jettison people you have trained and spent a great deal of time with. Keep and protect your investment. Executives seem to understand “investments”, but lose sight when it comes to “people”. Maybe we should change the language for these short sighted Executives, and call everyone an “investment”.

And if an Executive implements massive layoffs, and uses short term thinking, is there some way we can prevent him (usually the female CEO’s of the world have more smarts) from ever making a speech where they say “People are our most important asset?” It rings kind of hollow after a layoff. Oh, and one last point. A layoff is a sign of a failure to accurately predict your business cycles, a failure to connect with your customers, a failure to manage resources properly, and a waste of money. Any Executive who commits such egregious errors should be the first one let go. Think about it….