Keeping Employees

Higher Profits

By: John D. Frances

      Pick up any newspaper or listen to any business news broadcast and you’re sure to hear about another massive corporate layoff or cutback.

      As soon as the economy stalls or turns sour, pink slips begin to fly. Unfortunately, we have come to accept this as the inevitable employment cycle. Is it any wonder that employees feel so little loyalty toward their employers?

      On the other hand, corporations seem to have no alternative. With the squeeze on profits, and stockholders and analysts anxiously watching, company leaders feel they must act quickly or bear the wrath of Wall Street. They understand that their response may be a little shortsighted, but investors have short fuses when it comes to waiting patiently for the earnings statements to turn around.

      In the short term, some cuts may be essential and unavoidable, but it is far better to keep as many people as possible rather than making your staff so lean as to show an immediate profit. Because your organization’s long-term future may well be on the line and decided by how you respond to the present economic downturn, you need to understand the consequences of layoffs and find new ways to make a profit in ...

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