Comments on: If the Sky is Falling, Say So http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html Exploring the trends driving small business Fri, 10 Feb 2012 00:40:28 +0000 hourly 1 http://wordpress.org/?v= By: Gregg http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-649243 Gregg Mon, 01 Dec 2008 20:43:52 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-649243 Costs related to having to lay people don't stop when employers reduce their workforce. A smart employer will have a program in place that will help those who are being terminated get from unemployment to re-employment as soon as possible. Career transision is a means for the employee to find employment as soon as possible making the loss of their job less devastating. It will also save the employer money. I would think in these hard economic times that we would see more being done to make this transition. Costs related to having to lay people don’t stop when employers reduce their workforce. A smart employer will have a program in place that will help those who are being terminated get from unemployment to re-employment as soon as possible. Career transision is a means for the employee to find employment as soon as possible making the loss of their job less devastating. It will also save the employer money. I would think in these hard economic times that we would see more being done to make this transition.

]]> By: Marcia Hoeck http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647894 Marcia Hoeck Thu, 27 Nov 2008 17:47:19 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647894 I think it goes back to the size of your business and the relationship you have with your staff to begin with. In a small business with under 20 or so employees, if you've had good ongoing communication with staff over time, I believe they are more likely to stand behind you and dig in to help when business goes south. I keep my staff informed, in a general way, about the financial status of the company on a quarterly basis, continually, so there's no surprise when we're in a pinch. I level with them well in advance, we tighten our belts, everyone steps up sales efforts and is on the lookout for opportunities, and we've taken pay cuts across the board to weather the storm as a group once in the early 90's. Information is key -- I believe that withholding it creates more fear, poor job performance, and the tendency to jump ship than sharing the other way around. I think it goes back to the size of your business and the relationship you have with your staff to begin with. In a small business with under 20 or so employees, if you’ve had good ongoing communication with staff over time, I believe they are more likely to stand behind you and dig in to help when business goes south. I keep my staff informed, in a general way, about the financial status of the company on a quarterly basis, continually, so there’s no surprise when we’re in a pinch. I level with them well in advance, we tighten our belts, everyone steps up sales efforts and is on the lookout for opportunities, and we’ve taken pay cuts across the board to weather the storm as a group once in the early 90′s. Information is key — I believe that withholding it creates more fear, poor job performance, and the tendency to jump ship than sharing the other way around.

]]> By: Rose Anderson http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647846 Rose Anderson Thu, 27 Nov 2008 13:47:06 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647846 Well, you will never know Arthur unless you've tried both. Well, you will never know Arthur unless you’ve tried both.

]]> By: Arthur Bland http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647409 Arthur Bland Wed, 26 Nov 2008 09:35:15 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647409 Well as expected this is a mind boggling article because as for me, I am torned between two parties. But of course, if am the business owner -- even how hard is letting go of our employees we have no choice but to save our business. Let our business grow again and hire people again in the near future. Well as expected this is a mind boggling article because as for me, I am torned between two parties. But of course, if am the business owner — even how hard is letting go of our employees we have no choice but to save our business. Let our business grow again and hire people again in the near future.

]]> By: Tim Berry http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647353 Tim Berry Wed, 26 Nov 2008 05:44:08 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647353 Greg, interesting, and good to see a strong position in the opposite direction. What you're suggesting is very much what a lot of us worry about, so where's there's smoke there's presumably some fire too. But I will tell you that -- at least in my experience -- it didn't happen that way. People pitched in when they knew we were hurting. What makes this topic interesting is there's no clear right answer. Tim. Greg, interesting, and good to see a strong position in the opposite direction. What you’re suggesting is very much what a lot of us worry about, so where’s there’s smoke there’s presumably some fire too. But I will tell you that — at least in my experience — it didn’t happen that way. People pitched in when they knew we were hurting. What makes this topic interesting is there’s no clear right answer. Tim.

]]> By: Greg Charland http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647297 Greg Charland Tue, 25 Nov 2008 23:59:29 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647297 I've been on both sides in several cases. As an employee it WOULD be easier and fairer to make decisions based on reality. But in most cases the owner/manager CAN'T honestly let the rank and file employees (or customers, partners, etc) know what's really going on with the company. (Not to mention the many, many cases where the owner doesn't really KNOW what condition the company is really in.) Tell folks things are going down and the effort level goes way down. Productivity falls 75% within days. The employees who can jump ship do. These are the very people who would be essential to sparking a turnaround or taking over after a buyout. Word spreads quickly. Vendors stop extending credit, and customers stop placing orders...or they stop paying. Banks call their notes. ANY chance of recovery or acquisition goes down the drain. Investors sue for big money and the owner's reputation and future ability to start ventures goes away. The business owner has a delicate balancing act to play between the ongoing prospects of the company, its employees, customers, vendors, investors, etc. It's like the last few seconds of a basketball or football game where the losing team starts making desperation plays, calling timeouts, and doing whatever they can to increase the (however unlikely) chance of some miracle happening. Tipping your hand and telling your employees (and customers, vendors, bank, and world) that you're going down reduces that chance from 1-2% to 0. I’ve been on both sides in several cases. As an employee it WOULD be easier and fairer to make decisions based on reality. But in most cases the owner/manager CAN’T honestly let the rank and file employees (or customers, partners, etc) know what’s really going on with the company. (Not to mention the many, many cases where the owner doesn’t really KNOW what condition the company is really in.)

Tell folks things are going down and the effort level goes way down. Productivity falls 75% within days. The employees who can jump ship do. These are the very people who would be essential to sparking a turnaround or taking over after a buyout.

Word spreads quickly. Vendors stop extending credit, and customers stop placing orders…or they stop paying. Banks call their notes.

ANY chance of recovery or acquisition goes down the drain. Investors sue for big money and the owner’s reputation and future ability to start ventures goes away.

The business owner has a delicate balancing act to play between the ongoing prospects of the company, its employees, customers, vendors, investors, etc.

It’s like the last few seconds of a basketball or football game where the losing team starts making desperation plays, calling timeouts, and doing whatever they can to increase the (however unlikely) chance of some miracle happening.

Tipping your hand and telling your employees (and customers, vendors, bank, and world) that you’re going down reduces that chance from 1-2% to 0.

]]> By: Andy Wendt http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647230 Andy Wendt Tue, 25 Nov 2008 21:38:07 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647230 Letting an employee go is never easy. I agree that it's even harder when you know an employee personally or even know the details of their personal situation. Though perhaps sometimes necessary in certain industries I think the worst possible scenario for all involved is when an employee has no idea a termination is on the way. From my experience the worst scenario for actually having to let someone go is a meeting on Friday that finalizes the decision to terminate on Monday. As someone else I think mentioned earlier I have found that it's actually easier to let two or more people go at the same time than the classic one on one scenario. Giving someone that news is nothing anyone wants to do. So if there is a way to make a termination easier and less painful for all involved I think managers and business owners alike have a duty to make that happen. Letting an employee go is never easy. I agree that it’s even harder when you know an employee personally or even know the details of their personal situation.

Though perhaps sometimes necessary in certain industries I think the worst possible scenario for all involved is when an employee has no idea a termination is on the way. From my experience the worst scenario for actually having to let someone go is a meeting on Friday that finalizes the decision to terminate on Monday.

As someone else I think mentioned earlier I have found that it’s actually easier to let two or more people go at the same time than the classic one on one scenario. Giving someone that news is nothing anyone wants to do. So if there is a way to make a termination easier and less painful for all involved I think managers and business owners alike have a duty to make that happen.

]]> By: Mary Grace Ignacio http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647121 Mary Grace Ignacio Tue, 25 Nov 2008 07:48:33 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647121 Without reading this article and Anita's experience in terminating employees would have remained me one sided -- the employees' side. I really hated those businessmen who find terminating people as easy as it seems just to save their money. But that was before. This article really awakened me and made me realized how difficult it is for business owners to do this to their employees. Without reading this article and Anita’s experience in terminating employees would have remained me one sided — the employees’ side. I really hated those businessmen who find terminating people as easy as it seems just to save their money. But that was before. This article really awakened me and made me realized how difficult it is for business owners to do this to their employees.

]]> By: Kris Bovay http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647057 Kris Bovay Tue, 25 Nov 2008 06:18:33 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647057 Unfortunately I've worked through a couple of recessionary periods - I have a feeling this one is going to get worse before it gets better. Last week, one of my clients canceled the company's annual Christmas party, froze salaries, cut shift premiums and laid off 10% of his staff. Unfortunately if he doesn't communicate to his employees what's happening and why and ask for not only their support, but their ideas in cutting costs and raising income, there will be more staff cuts to come. Unfortunately I’ve worked through a couple of recessionary periods – I have a feeling this one is going to get worse before it gets better. Last week, one of my clients canceled the company’s annual Christmas party, froze salaries, cut shift premiums and laid off 10% of his staff. Unfortunately if he doesn’t communicate to his employees what’s happening and why and ask for not only their support, but their ideas in cutting costs and raising income, there will be more staff cuts to come.

]]> By: Lynn http://smallbiztrends.com/2008/11/if-the-sky-is-falling.html#comment-647051 Lynn Tue, 25 Nov 2008 04:54:06 +0000 http://www.smallbiztrends.com/2008/11/if-the-sky-is-falling.html/#comment-647051 One major shipper anounced they were pulling out of the US. The driver that usually picks up my packages now shows up about 50% of the time. I began dropping my packages off at a local delivery store to ensure that my packages would be delivered. Speaking to an employee at the store, they mentioned that my driver picks up at their store, but goes into the back room and sleeps for an hour and a half each day. I'm not saying it is right to wait to tell your employees you are closing until you have done so, However, if you do, you may be harming innocent customers. One major shipper anounced they were pulling out of the US. The driver that usually picks up my packages now shows up about 50% of the time. I began dropping my packages off at a local delivery store to ensure that my packages would be delivered. Speaking to an employee at the store, they mentioned that my driver picks up at their store, but goes into the back room and sleeps for an hour and a half each day.
I’m not saying it is right to wait to tell your employees you are closing until you have done so, However, if you do, you may be harming innocent customers.

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