Work911 Ezine - Recession, Layoff Help, Economy, Free giveaway and much more in our longest issue yet.
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Robert Bacal
May 5, 2008, 1:05:16 PM5/5/08
to Work911 Ezine
May 5- 2008 - Contents - Focus On Coming Economic Challenges
In This Issue:
There are two major issues in the news, at least in North America. One
is the U.S. election, but the other is the economic upheavals and
instability that are or will be affecting many of us. Experts seem to
disagree on what is happening economically in both Canada and the
U.S.A. and whether we are going to be in a recession, but it certainly
seems we are in a period of instability. So we'll look at that, and we
have a special completely free giveaway for you. Instructions are
included within! BTW, this is our biggest issue ever and our most
complex. Hope we haven't mess this up somehow.
1) Update - Training and Development
2) Update - Small Business
3) Feature: How to Thrive Through This Recession, Jack Canfield Style
4) Feature: Free Trade and Business Publications
5)Feature: How Will A Recession Affect Your Business?
6) Feature: How To Handle A Layoff (for managers and HR professionals)
7) BLOCKBUSTER FREE TIME LIMITED OFFER -
8 )Our Sites
You are receiving the work911.com newsletter because you asked to be
placed on this distribution list. It is NEVER sent unsolicited. To
unsubscribe just follow the instructions at the bottom.
1) Update - The Training World:
TheTrainingWorld.com - Our free site for trainers, training consumers,
and learners has just expanded. I've dug into the Bacal archives and
created a blog replete with material I've written over the last decade
+ on training and development that has never been openly or publicly
available. There's controversy. There's information, and advice.
There's chuckles and satire as I tend to poke fun at, or criticize
some of the loonies in the training, coaching and consulting
professions. . The new section is at http://www.thetraiingworld.com/wp/
It's interactive. If you register, you can post your comments and
insights.
Of course, our article library, and other valuable training related
stuff is still at the main site at http://www.thetrainingworld.com
2) Update - Small Business
Last issue we announced the launch of our small business site at
http://smallbusiness411.org, and we continue to work on it, albeit
slowly. There's the usual articles, and links, and there's also a blog
which I think you will enjoy. Development has been a bit slow because
we are writing Perfect Phrases For Small Business to be published by
McGraw-Hill, hopefully sometime this year.
Just to add on relevance. As jobs get scarce, more and more people
turn to the possibility of starting a small business, temporarily or
permanently. Check out our small business resource center!
Here's an additional resource if you are a small business person. A
number of companies have available, free publications targeted at
small business owners. They are free, if you qualify, and we've
subscribed to several. There's no tricks or catches. It's all at
http://workhelp.tradepub.com/?pt=cat&page=Small and there's a ton of
stuff. Each publisher has different criteria, so if you don't qualify
for one, try another.
Also, for publications on all subjects try http://workhelp.tradepub.com
.
Do not miss the opportunity to get, free of charge, a copy of Layoff
Proofing Yourself While You Still Have a Job Helpcard. See below.
3) How to Thrive Through This Recession, Jack Canfield Style
By [http://ezinearticles.com/?expert=Susan_L_Reid]Susan L Reid
We're hearing a lot about the economy lately. In fact, just this week,
Alan Greenspan actually said "the r word" by announcing that the
United States is in a recession. Our last recession, from 2001-2003,
was due to the collapse of the dot-com bubble, the September 11th
attacks, and accounting scandals such as Enron. There were also
recessions in the early 1990s and early 1980s.
In fact, for the last 30 years, the U.S. has gone through a recession
once every decade. There's no indication that this will change in the
future. Burying your head in the sand will certainly spell disaster
for your business. Gritting your teeth to weather the storm will only
increase your blood pressure and keep you up at night.
The good news is that a recession is not a depression. It's unlikely
that we will ever go through something like the Great Depression
again. However, it's quite possible that this will not be our last
recession. To be successful, you need to become informed about what a
recession is and what steps you can take to thrive in the midst of
one.
What is a Recession, and What Can You Do about it?
A recession is a period of temporary economic decline during which
trade and industrial activity are reduced. It is identified by a
decline in a country's gross domestic product (GDP), or negative
economic growth, for two or more successive quarters. In short, a
recession means a steady, prolonged decline in sales.
As a small business owner, you've experienced a decline in sales
before. It's a normal part of any sales cycle. Question is: When
you've had a drop in sales in the past, what did you do? Did you just
wait, hoping for things to get better? Or, did you take decisive
action to nip things in the bud and turn things around? If you are a
successful small business owner ' someone intent on creating a
constant and steadily increasing cash flow ' then you know the
importance of taking informed, resolute action.
Jack Canfield, too, knows about decisive action. He's famous for his
rags-to-riches story of how he committed to contacting five people a
day to promote his book, Chicken Soup for the Soul. The key to his
success was his commitment to action. Not just any old action, mind
you. Aligned, well-thought-out, purposeful action. Jack knew he had a
monumental task in front of him: promoting an unknown book by an
unknown author. Each day he took action to increase name recognition,
forge connections, and build sales.
Five Simple Steps for Thriving through a Recession, Jack Canfield
Style
1. Get back to basics
Recessions are good for all things that begin with "re." Re-group, re-
organize, re-view. Revisit the fundamentals that have already made
your business a success. Revise your mission statement to stand for
what your business is really all about. Reject rejection. Practice
Jack's "Rule of Five": Every day, do five things that will move you
toward your goal.
2. Clean up your act
Recessions are a great time, Jack advises, to clean up your messes.
Now, when sales are slow, finish anything that is incomplete. De-
clutter your office and organize your files. Make phone calls to
bridge any disconnects that may have occurred between you and your
customers. Magnify your success energy by focusing on what you want to
happen, not what you are experiencing.
3. Focus on your connections and relationships
Recessions are the perfect time to forge new connections and
strengthen long-standing relationships. Practice uncommon
appreciation. Review your agreements with clients and confirm your
commitment to them. Speak first and with integrity. Be impeccable in
your communication. Meet for breakfast instead of over the phone.
Supplement emails with handwritten cards and notes.
4. Be smart with your money
Recessions are the natural time for small business owners to review
their financials. Take a look at your cash flow. Collect on any
outstanding accounts. Don't fall into lackful thinking by clutching
and holding onto your money. Spend wisely. Make sure your bills are
paid. Above all else, give more. Keep your energy flowing by finding a
way to serve others.
5. Step back
Recessions are the ideal time to practice stepping back in order to
keep things in perspective. Instead of energetically aligning with all
the fears, doubts, and anxieties associated with a recession, step
back and move to higher ground. Don't get caught up in others' panic.
Soar above it all to a place where clarity can be gained and
perspective maintained. While you're at it, take others with you. As
Jack says, "When you lift up others, they will lift up you."
No one likes feeling uncertain about the future. Yet nothing is ever
certain, whether or not we're in a recession! By taking decisive
action now, you can positively influence your future. When this
recession ends, don't let your company be one that just managed to
survive. Practice Jack's Rule of Five and thrive. [http://
www.alkamae.com]Business Coach & Consultant for entrepreneurial women
starting up small businesses, Dr. Susan L Reid is the author of
Discovering Your Inner Samurai: The Entrepreneurial Woman's Journey to
Business Success. For ideas, tips, and support for your business
journey, sign up here for our [http://
www.discoveringyourinnersamurai.com]free e-Zine.
---
4) Featured Free Trade and Business Publications
"Budgeting, Forecasting and Reporting" http://workhelp.tradepub.com/free/w_ad05/
Learn how to escape spreadsheet hell and make Finance a strategic
resource.
The corporate budgeting, forecasting, and reporting process presents a
formidable challenge to most companies, regardless of size or
industry. Budgeting is often seen as burdensome and time consuming.
Yet budgeting is also a crucial element of financial management, which
in turn is a huge contributor to a company's overall success or
failure. As a result, companies that are able to address budgeting
obstacles and improve their process will be rewarded with:
* More accurate budgets
* More timely re-forecasts
* Improved decision-making
Companies can overcome planning challenges and achieve these goals by
applying budgeting and forecasting best practices and leveraging new
technologies. http://workhelp.tradepub.com/free/w_ad05/
"The Looming Leadership Void: Identifying, Developing, and Retaining
Your Top Talent"
http://workhelp.tradepub.com/free/w_tale08/
Learn more about the unavoidable leadership void and how to prepare to
fill the leadership ranks and ensure appropriate bench strength.
The daunting combination of the high volumes of outbound talent and
the low levels of available skilled labor have brought into focus the
need for succession planning - a combination of process, tools, and
disciplines that enable an organization to plan for anticipated
leadership needs as well as identify, develop, retain, and allocate
key talent.
This white paper, a compilation of survey responses from 245
organizations, is a roadmap for organizations that desire to achieve
superior performance through Best-in-Class use of succession planning
with regards to strategy, capabilities, and technology utilization.
http://workhelp.tradepub.com/free/w_tale08/
"Talent Management in a Down Economy"
http://workhelp.tradepub.com/free/w_tale06/
Explore the relationship between talent management strategies,
processes and practices, and the advantages that can be gained by
talent management for organizations coping with an economic downturn.
Talent management in a low growth economy offers new opportunities—
especially internal mobility, performance management, and quality of
hire—to deliver significant business performance benefits in the midst
of financial constraints. Citing historical data and demographic
trends, this paper dispels misconceptions that HR's focus is narrowed
when markets decline.
Learn how you can use talent management to cut costs and boost
productivity while you:
* Redeploy existing resources to expand into new markets.
* Align employee performance to corporate goals.
* Focus on bringing new skills in-house.
* Implement development and retention programs. http://workhelp.tradepub.com/free/w_tale06/
5) How Will A Recession Affect Your Business?
By [http://ezinearticles.com/?expert=Amir_Watynski]Amir Watynski
Oh, no. Not the dreaded R-word! I refuse to even utter that word. Are
we in one? Are we headed towards one? The economists have been arguing
over this for the past few months, and will likely continue doing so.
The reason I hate the R-word is not because of its effect on my
business - actually, some of my best months have been during bad
economic times - but because of the effect it could have on my psyche.
See, to me, the R-word seems to make people complacent. You've heard
it before - "How's business?" "Terrible! Sales are down...it's the
recession." A recession (there, I've said it!) gives people something
to blame - a reason for their slump. And it's easy to get lazy and
resign oneself to the idea that times are tough and any extra effort
will likely be wasted.
So don't give in to the R-word! Here's what you can do to make your
business immune to it:
Increase sales efforts. Hire more sales people. People are still
buying, even in a down economy. It may take some more work to find
them, that's all.
Increase marketing. Become creative; it doesn't need to cost a lot to
be effective. E-mail marketing is extremely effective and inexpensive.
Increase networking. Join a chamber or local referral group. Get out
there!
Find alliance partners. Seek businesses in complimentary industries
that could be a good referral source for you, or vice versa. Partner
with them and try to find a win-win situation, such as mutual referral-
giving, or a referral fee for any referrals given that sign up as
customers..
Make some more phone calls. Stay at work 10 minutes more each day and
make a few more phone calls. Every little bit of effort adds up.
Do things you don't normally do. Think outside the box. Make that
phone call. Take a chance. You may have a record month!
Amir Watynski owns Watt Media, Inc., which helps businesses promote
their services and enhance their image with telephone "on-hold"
messages and music, and web design services. Website: http://www.watt-media.com.
Blog: http://blog.watt-media.com
--
6) How To Manage A Layoff
By [http://ezinearticles.com/?expert=Les_Gore]Les Gore
It's raining pink slips. But for those who were lucky enough to land a
job as CEO of a major US company these past few years, the only thing
crazier than the bloated compensation packages these CEOs got was the
size of their severance packages when they were fired.
And what about those people who worked in good faith to execute those
failed strategies? They got shafted-cut loose with little or nothing
in the way of severance.
This article deals with the hard reality of layoffs: how to do it
legally, effectively, and with consideration for your departing and
remaining employees-while preparing your business for recovery. Feel
free to share this information with a colleague or friend. And if
layoffs and freezes are not in your forecast-congratulations.
Head Count. A Company's Largest Expense and the One Cut First During
an Economic Downturn.
And who better to validate our downward spiral than George Bush who
recently announced that the U.S economy is in a "rough patch" right
now.
Tell that to the 9,000 folks at Citigroup and 4,600 at AT&T who got
their pink slips a week or so ago.
Whether you call it a layoff, reduction in force (RIF) or downsizing,
doing so can result in legal challenges and leave you with a remaining
workforce that is demoralized and unproductive. The more you know
about state and federal laws and best practices for handling layoffs,
the better equipped you'll be in protecting your company from
operating and legal difficulties.
A Littered Landscape of Layoffs
Layoffs have become all too common in the landscape of U.S.
businesses. January layoffs rose a whopping 69 percent from December
2007 to 75,000-the highest amount since August 2007, according to
outplacement firm Challenger, Gray and Christmas. Housing and
financial sectors were hit hardest.
In the months ahead, more layoffs are projected in the retail,
professional and technical services, pharmaceutical, automotive,
leisure and hospitality industries. A 37 percent increase in 2008
compared to last year, makes this year's forecast the worst in five
years, according to a recent survey conducted by Career Protection.
What Do You Say When You're Laying Off People?
How do you keep morale up for your remaining staff and calm their
fears about job security? And how do you protect your company from
legal exposure with regards to the documents you write when going
through the layoff selection process?
Plan Ahead and Follow the Script
Perhaps the idea of "scripting" a verbal communication sounds
insincere or artificial. As a representative of your company however,
it is a good idea to plan ahead so you don't say too much and land
your company in legal hot water, but you still say enough to convey
the message at hand.
What You Might Say in the Initial Employee Meeting
"Steve, in an effort to reduce costs, we are restructuring our
business, and that will result in the elimination of a number of
positions in our company. Unfortunately, your position is one of them,
and I'm afraid we're going to have to lay you off. Today will be your
last day of work with us, and we have information to share with you
regarding your severance package, COBRA and unemployment insurance. I
know this is a lot of information coming at you at once, and I'm so
sorry to have to relay this message to you. Before I go any further, I
want to see how you're doing. Are you OK?
"Just so you're aware: About 35 positions are being eliminated
throughout the day. Out of respect for the other people involved, I
would ask that you say as little as possible today. We would prefer to
tell the affected employees ourselves; we want to avoid people hearing
about this through the grapevine if we can help it. In addition, I
know that some people prefer to leave quietly while others want to say
goodbye to a few close friends. We'll respect whatever decision you
make. How do you think you would like to handle that?
"Finally, I just want to thank you for all your hard work and
dedication for the past two years. You have made it a better place
around here, and I'm personally going to miss working with you. Thank
you for all you have done for us."
Handling Employees' Questions
If you speak softly and with genuine concern, most employees will
appreciate your sincere approach. After your opening statement, expect
some employees to question the reasoning behind the RIF:
Question: Why was my position chosen for elimination?
Answer: It was a business decision. Please don't take this personally;
when a reduction in force occurs, positions are eliminated. The people
who are attached to those jobs then get laid off. It's the hardest
thing a manager can do-selecting positions for elimination is so
difficult because you realize that people's lives will be interrupted.
That's why I'm so sorry that this is occurring.
Question: Who else is being laid off? Am I the only one in our
department? Why me?
Answer: Steve, I can't share who else is being laid off in the
department at this point. We haven't spoken to the other individual(s)
yet, so I would ask that you allow me to hold off on answering that
for now. [Or:] Yes, yours is the only position in our department
that's being eliminated. Again, please don't feel that you've
disappointed anyone. I want you to know that you could be considered
for rehire once the hiring freeze is lifted. For now though,
understand that we had to eliminate one position, and, purely from a
functional standpoint, your position made the most sense.
Question: How can that be? Who's going to do all the work that I do
once I'm gone?
Answer: With the elimination of your position, other members of the
department will have to take on the remaining job duties that you've
handled up to now. That's something we'll simply have to deal with in
this new "downsized" mode. Travis is here with us from human resources
to discuss some of the details related to your severance package and
other important benefits details relating to this layoff.
When One Is Enough
When one individual is selected for layoff from a comparison pool of
employees with the same title, expect the person to say: "Wait. You
can't lay me off and keep Heather. I have more longevity than she
does."
Your answer: "I recognize that. However, I want you to know that we
considered tenure in our decision. We also looked at performance
appraisals, progressive disciplinary warnings, attendance records,
education levels, and skills and technical certifications when
determining who would be qualified to assume the remaining duties
after the reduction-in-force. We determined that, based on all that
historical information along with our evaluation of who would work
best in the post-layoff environment, you would be selected for layoff.
Are there any other questions I could answer for you?"
Script for Remaining Employee Meetings
In general, it's better to bring about "group closure" when there are
layoffs or terminations. It gives employees a chance to express their
concerns publicly and hear directly from you what occurred. This not
only minimizes concern relating to employees' own job security but
also diminishes the rumor mill.
A Sample Script to Help You After the RIF Occurs
"I wanted to call you all into a meeting to follow up regarding the
layoffs that took place earlier today in our department. As you may
know, two members of our department have been laid off. The company
has provided the affected employees with a severance package and is
working with them through this transition.
"Of course, no guarantees of job security can be given, but as far as
we understand, there aren't any other planned layoffs in our
department at this time. I wanted to let you all know to allay any
fears you might have about your own job security right now.
"We wish those laid off well, and we have treated them with the
respect and dignity they deserve. I know I can count on your support
in doing the same. I also want to remind you that if you get any
reference-checking phone calls from prospective employers or
recruiters, those calls are to be referred to me. I will in turn pass
them along to human resources as per company policy. Note that the
laid-off employees have been given copies of their last three
performance evaluations, and they're free to share those with
prospective employers to demonstrate their strengths and areas for
professional development.
"If there are no other questions, I thank you all for coming. I
appreciate your patience and understanding, and I look forward to
moving beyond this difficult period."
Written Documentation Caveats
Line managers often are asked to select individuals for layoffs based
on certain criteria. For example, if you are asked to eliminate 12
people from a 15-person department, you may be asked to justify your
decision in terms of whom to retain and whom to lay off.
When that's the case, it may be advised to create a comparison group
evaluation form that highlights performance reviews, oral or written
disciplinary communications, attendance records, tenure, experience
prior to joining your company, education and technical skills or
certifications.
Such documents are meant to encourage an objective evaluation process,
but in case of a class-action discrimination lawsuit, the documents
become subject to subpoena in the discovery process. One way to lessen
the chances (there's no guarantee) of having this documentation
subpoenaed is to designate the documentation as attorney-client
privileged.
Your in-house or outside counsel will recommend that you write at the
top of each evaluation page: "Privileged and Confidential: Prepared at
the Request of (attorney's name)."
The legal rules and guidelines of the attorney-client privilege go
beyond the scope of this article. Just be sure to check with counsel
first before drafting any documents relating to a layoff. More
importantly, don't write freely with little regard to the fact that
your notes may be blown up in front of a jury to demonstrate unlawful
motives on management's part.
The goal of any layoff is to treat employees with dignity and respect.
The key way to achieve this is to communicate openly and honestly with
those laid off and with those who survive and assume the remaining job
responsibilities.
Retain Top Talent
It may seem unrealistic to focus on retention when you're laying
people off, but there's no other time when retention becomes more
important than when a company is letting workers go. Critically assess
who the talent is you must retain and do everything possible to do it,
including giving them a defined and key role in the turnaround after
the layoffs.
The preceding is based on information provided by The Society of Human
Resource Management. This material is provided as general information
only and does not constitute and is not a substitute for legal or
other professional advice.
Les Gore is founder and managing partner of Executive Search
International, a Boston-based, nationally recognized search firm and a
25-year veteran of the "recruiting wars." http://www.execsearchintl.com
Article Source: http://EzineArticles.com/?expert=Les_Gore
http://EzineArticles.com/?How-To-Manage-A-Layoff&id=1127451
7) BLOCKBUSTER FREE OFFER TO OUR SUBSCRIBERS
Periodically we decide to give away one of our books or products for a
limited time, no catch, to our subscribers. You don't have to register
or anything. We've decided to make available our Layoff Proofing
Yourself While You Are Still Employed Helpcard in picture format.
PLEASE NOTE. You can get this until Thursday, May 8th, 6pm EDT (that
U.S. East Coast time).
Instructions to get your free helpcard.
Go to http://www.work911.com/products/index.htm
At the bottom you will see a text link labeled FOR SUBSCRIBERS. Click
on it.
You will then be asked to provide a user name and password.
Username: subscriber
password: layoff1
You will then see too GIF files. Click on each and the helpcard (it's
two pages) should appear on your screen. If it's hard to read, magnify
it (it really looks good on the screen). Save it or print it if you
like.
Sorry for the hassle, but giveaways cost us in terms of web bandwidth,
so we need to restrict it to our loyal subscribers. Enjoy.
PS. If you encounter a problem, let us know at c...@work911.com, and
while we can't help you on a case by case basis, we'll try to remedy
any problems in our next newsletter.
8) Our Sites:
Just a quick summary of our sites that have information on the
following topics:
Leadership Resource Center: http://work911.com/leadership-development/index.html
Communication Resource Center: http://www.work911.com/communication/index.htm
Conflict (both workplace and family) http://conflict911.com
Business, Strategic and Personal Planning: http://www.work911.com/planningmaster/index.html
Performance Management & Appraisal: http://performance-appraisals.org
Customer Service: http://customerservicezone.com
Our Main Site: http://www.work911.com
Multi-Purpose Articles Database: http://www.articles911.com
To new subscribers: The work911 newsletter is published no more than
once a week (but usually no more than once a month) and contains
articles on all things work related, and contains other work related
resources, and updates about our sites, and their contents. Past
history indicates we publish about every ten days. Subscribe at
http://work911.com/newsletter.htm
Don't forget that you can access free, useable previews of over twenty
of our books and helpcards at:
http://www.work911.com/products
and that we continue to offer special freebie offers and discounts to
our newsletter subscribers!
In This Issue:
There are two major issues in the news, at least in North America. One
is the U.S. election, but the other is the economic upheavals and
instability that are or will be affecting many of us. Experts seem to
disagree on what is happening economically in both Canada and the
U.S.A. and whether we are going to be in a recession, but it certainly
seems we are in a period of instability. So we'll look at that, and we
have a special completely free giveaway for you. Instructions are
included within! BTW, this is our biggest issue ever and our most
complex. Hope we haven't mess this up somehow.
1) Update - Training and Development
2) Update - Small Business
3) Feature: How to Thrive Through This Recession, Jack Canfield Style
4) Feature: Free Trade and Business Publications
5)Feature: How Will A Recession Affect Your Business?
6) Feature: How To Handle A Layoff (for managers and HR professionals)
7) BLOCKBUSTER FREE TIME LIMITED OFFER -
8 )Our Sites
You are receiving the work911.com newsletter because you asked to be
placed on this distribution list. It is NEVER sent unsolicited. To
unsubscribe just follow the instructions at the bottom.
1) Update - The Training World:
TheTrainingWorld.com - Our free site for trainers, training consumers,
and learners has just expanded. I've dug into the Bacal archives and
created a blog replete with material I've written over the last decade
+ on training and development that has never been openly or publicly
available. There's controversy. There's information, and advice.
There's chuckles and satire as I tend to poke fun at, or criticize
some of the loonies in the training, coaching and consulting
professions. . The new section is at http://www.thetraiingworld.com/wp/
It's interactive. If you register, you can post your comments and
insights.
Of course, our article library, and other valuable training related
stuff is still at the main site at http://www.thetrainingworld.com
2) Update - Small Business
Last issue we announced the launch of our small business site at
http://smallbusiness411.org, and we continue to work on it, albeit
slowly. There's the usual articles, and links, and there's also a blog
which I think you will enjoy. Development has been a bit slow because
we are writing Perfect Phrases For Small Business to be published by
McGraw-Hill, hopefully sometime this year.
Just to add on relevance. As jobs get scarce, more and more people
turn to the possibility of starting a small business, temporarily or
permanently. Check out our small business resource center!
Here's an additional resource if you are a small business person. A
number of companies have available, free publications targeted at
small business owners. They are free, if you qualify, and we've
subscribed to several. There's no tricks or catches. It's all at
http://workhelp.tradepub.com/?pt=cat&page=Small and there's a ton of
stuff. Each publisher has different criteria, so if you don't qualify
for one, try another.
Also, for publications on all subjects try http://workhelp.tradepub.com
.
Do not miss the opportunity to get, free of charge, a copy of Layoff
Proofing Yourself While You Still Have a Job Helpcard. See below.
3) How to Thrive Through This Recession, Jack Canfield Style
By [http://ezinearticles.com/?expert=Susan_L_Reid]Susan L Reid
We're hearing a lot about the economy lately. In fact, just this week,
Alan Greenspan actually said "the r word" by announcing that the
United States is in a recession. Our last recession, from 2001-2003,
was due to the collapse of the dot-com bubble, the September 11th
attacks, and accounting scandals such as Enron. There were also
recessions in the early 1990s and early 1980s.
In fact, for the last 30 years, the U.S. has gone through a recession
once every decade. There's no indication that this will change in the
future. Burying your head in the sand will certainly spell disaster
for your business. Gritting your teeth to weather the storm will only
increase your blood pressure and keep you up at night.
The good news is that a recession is not a depression. It's unlikely
that we will ever go through something like the Great Depression
again. However, it's quite possible that this will not be our last
recession. To be successful, you need to become informed about what a
recession is and what steps you can take to thrive in the midst of
one.
What is a Recession, and What Can You Do about it?
A recession is a period of temporary economic decline during which
trade and industrial activity are reduced. It is identified by a
decline in a country's gross domestic product (GDP), or negative
economic growth, for two or more successive quarters. In short, a
recession means a steady, prolonged decline in sales.
As a small business owner, you've experienced a decline in sales
before. It's a normal part of any sales cycle. Question is: When
you've had a drop in sales in the past, what did you do? Did you just
wait, hoping for things to get better? Or, did you take decisive
action to nip things in the bud and turn things around? If you are a
successful small business owner ' someone intent on creating a
constant and steadily increasing cash flow ' then you know the
importance of taking informed, resolute action.
Jack Canfield, too, knows about decisive action. He's famous for his
rags-to-riches story of how he committed to contacting five people a
day to promote his book, Chicken Soup for the Soul. The key to his
success was his commitment to action. Not just any old action, mind
you. Aligned, well-thought-out, purposeful action. Jack knew he had a
monumental task in front of him: promoting an unknown book by an
unknown author. Each day he took action to increase name recognition,
forge connections, and build sales.
Five Simple Steps for Thriving through a Recession, Jack Canfield
Style
1. Get back to basics
Recessions are good for all things that begin with "re." Re-group, re-
organize, re-view. Revisit the fundamentals that have already made
your business a success. Revise your mission statement to stand for
what your business is really all about. Reject rejection. Practice
Jack's "Rule of Five": Every day, do five things that will move you
toward your goal.
2. Clean up your act
Recessions are a great time, Jack advises, to clean up your messes.
Now, when sales are slow, finish anything that is incomplete. De-
clutter your office and organize your files. Make phone calls to
bridge any disconnects that may have occurred between you and your
customers. Magnify your success energy by focusing on what you want to
happen, not what you are experiencing.
3. Focus on your connections and relationships
Recessions are the perfect time to forge new connections and
strengthen long-standing relationships. Practice uncommon
appreciation. Review your agreements with clients and confirm your
commitment to them. Speak first and with integrity. Be impeccable in
your communication. Meet for breakfast instead of over the phone.
Supplement emails with handwritten cards and notes.
4. Be smart with your money
Recessions are the natural time for small business owners to review
their financials. Take a look at your cash flow. Collect on any
outstanding accounts. Don't fall into lackful thinking by clutching
and holding onto your money. Spend wisely. Make sure your bills are
paid. Above all else, give more. Keep your energy flowing by finding a
way to serve others.
5. Step back
Recessions are the ideal time to practice stepping back in order to
keep things in perspective. Instead of energetically aligning with all
the fears, doubts, and anxieties associated with a recession, step
back and move to higher ground. Don't get caught up in others' panic.
Soar above it all to a place where clarity can be gained and
perspective maintained. While you're at it, take others with you. As
Jack says, "When you lift up others, they will lift up you."
No one likes feeling uncertain about the future. Yet nothing is ever
certain, whether or not we're in a recession! By taking decisive
action now, you can positively influence your future. When this
recession ends, don't let your company be one that just managed to
survive. Practice Jack's Rule of Five and thrive. [http://
www.alkamae.com]Business Coach & Consultant for entrepreneurial women
starting up small businesses, Dr. Susan L Reid is the author of
Discovering Your Inner Samurai: The Entrepreneurial Woman's Journey to
Business Success. For ideas, tips, and support for your business
journey, sign up here for our [http://
www.discoveringyourinnersamurai.com]free e-Zine.
---
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5) How Will A Recession Affect Your Business?
By [http://ezinearticles.com/?expert=Amir_Watynski]Amir Watynski
Oh, no. Not the dreaded R-word! I refuse to even utter that word. Are
we in one? Are we headed towards one? The economists have been arguing
over this for the past few months, and will likely continue doing so.
The reason I hate the R-word is not because of its effect on my
business - actually, some of my best months have been during bad
economic times - but because of the effect it could have on my psyche.
See, to me, the R-word seems to make people complacent. You've heard
it before - "How's business?" "Terrible! Sales are down...it's the
recession." A recession (there, I've said it!) gives people something
to blame - a reason for their slump. And it's easy to get lazy and
resign oneself to the idea that times are tough and any extra effort
will likely be wasted.
So don't give in to the R-word! Here's what you can do to make your
business immune to it:
Increase sales efforts. Hire more sales people. People are still
buying, even in a down economy. It may take some more work to find
them, that's all.
Increase marketing. Become creative; it doesn't need to cost a lot to
be effective. E-mail marketing is extremely effective and inexpensive.
Increase networking. Join a chamber or local referral group. Get out
there!
Find alliance partners. Seek businesses in complimentary industries
that could be a good referral source for you, or vice versa. Partner
with them and try to find a win-win situation, such as mutual referral-
giving, or a referral fee for any referrals given that sign up as
customers..
Make some more phone calls. Stay at work 10 minutes more each day and
make a few more phone calls. Every little bit of effort adds up.
Do things you don't normally do. Think outside the box. Make that
phone call. Take a chance. You may have a record month!
Amir Watynski owns Watt Media, Inc., which helps businesses promote
their services and enhance their image with telephone "on-hold"
messages and music, and web design services. Website: http://www.watt-media.com.
Blog: http://blog.watt-media.com
--
6) How To Manage A Layoff
By [http://ezinearticles.com/?expert=Les_Gore]Les Gore
It's raining pink slips. But for those who were lucky enough to land a
job as CEO of a major US company these past few years, the only thing
crazier than the bloated compensation packages these CEOs got was the
size of their severance packages when they were fired.
And what about those people who worked in good faith to execute those
failed strategies? They got shafted-cut loose with little or nothing
in the way of severance.
This article deals with the hard reality of layoffs: how to do it
legally, effectively, and with consideration for your departing and
remaining employees-while preparing your business for recovery. Feel
free to share this information with a colleague or friend. And if
layoffs and freezes are not in your forecast-congratulations.
Head Count. A Company's Largest Expense and the One Cut First During
an Economic Downturn.
And who better to validate our downward spiral than George Bush who
recently announced that the U.S economy is in a "rough patch" right
now.
Tell that to the 9,000 folks at Citigroup and 4,600 at AT&T who got
their pink slips a week or so ago.
Whether you call it a layoff, reduction in force (RIF) or downsizing,
doing so can result in legal challenges and leave you with a remaining
workforce that is demoralized and unproductive. The more you know
about state and federal laws and best practices for handling layoffs,
the better equipped you'll be in protecting your company from
operating and legal difficulties.
A Littered Landscape of Layoffs
Layoffs have become all too common in the landscape of U.S.
businesses. January layoffs rose a whopping 69 percent from December
2007 to 75,000-the highest amount since August 2007, according to
outplacement firm Challenger, Gray and Christmas. Housing and
financial sectors were hit hardest.
In the months ahead, more layoffs are projected in the retail,
professional and technical services, pharmaceutical, automotive,
leisure and hospitality industries. A 37 percent increase in 2008
compared to last year, makes this year's forecast the worst in five
years, according to a recent survey conducted by Career Protection.
What Do You Say When You're Laying Off People?
How do you keep morale up for your remaining staff and calm their
fears about job security? And how do you protect your company from
legal exposure with regards to the documents you write when going
through the layoff selection process?
Plan Ahead and Follow the Script
Perhaps the idea of "scripting" a verbal communication sounds
insincere or artificial. As a representative of your company however,
it is a good idea to plan ahead so you don't say too much and land
your company in legal hot water, but you still say enough to convey
the message at hand.
What You Might Say in the Initial Employee Meeting
"Steve, in an effort to reduce costs, we are restructuring our
business, and that will result in the elimination of a number of
positions in our company. Unfortunately, your position is one of them,
and I'm afraid we're going to have to lay you off. Today will be your
last day of work with us, and we have information to share with you
regarding your severance package, COBRA and unemployment insurance. I
know this is a lot of information coming at you at once, and I'm so
sorry to have to relay this message to you. Before I go any further, I
want to see how you're doing. Are you OK?
"Just so you're aware: About 35 positions are being eliminated
throughout the day. Out of respect for the other people involved, I
would ask that you say as little as possible today. We would prefer to
tell the affected employees ourselves; we want to avoid people hearing
about this through the grapevine if we can help it. In addition, I
know that some people prefer to leave quietly while others want to say
goodbye to a few close friends. We'll respect whatever decision you
make. How do you think you would like to handle that?
"Finally, I just want to thank you for all your hard work and
dedication for the past two years. You have made it a better place
around here, and I'm personally going to miss working with you. Thank
you for all you have done for us."
Handling Employees' Questions
If you speak softly and with genuine concern, most employees will
appreciate your sincere approach. After your opening statement, expect
some employees to question the reasoning behind the RIF:
Question: Why was my position chosen for elimination?
Answer: It was a business decision. Please don't take this personally;
when a reduction in force occurs, positions are eliminated. The people
who are attached to those jobs then get laid off. It's the hardest
thing a manager can do-selecting positions for elimination is so
difficult because you realize that people's lives will be interrupted.
That's why I'm so sorry that this is occurring.
Question: Who else is being laid off? Am I the only one in our
department? Why me?
Answer: Steve, I can't share who else is being laid off in the
department at this point. We haven't spoken to the other individual(s)
yet, so I would ask that you allow me to hold off on answering that
for now. [Or:] Yes, yours is the only position in our department
that's being eliminated. Again, please don't feel that you've
disappointed anyone. I want you to know that you could be considered
for rehire once the hiring freeze is lifted. For now though,
understand that we had to eliminate one position, and, purely from a
functional standpoint, your position made the most sense.
Question: How can that be? Who's going to do all the work that I do
once I'm gone?
Answer: With the elimination of your position, other members of the
department will have to take on the remaining job duties that you've
handled up to now. That's something we'll simply have to deal with in
this new "downsized" mode. Travis is here with us from human resources
to discuss some of the details related to your severance package and
other important benefits details relating to this layoff.
When One Is Enough
When one individual is selected for layoff from a comparison pool of
employees with the same title, expect the person to say: "Wait. You
can't lay me off and keep Heather. I have more longevity than she
does."
Your answer: "I recognize that. However, I want you to know that we
considered tenure in our decision. We also looked at performance
appraisals, progressive disciplinary warnings, attendance records,
education levels, and skills and technical certifications when
determining who would be qualified to assume the remaining duties
after the reduction-in-force. We determined that, based on all that
historical information along with our evaluation of who would work
best in the post-layoff environment, you would be selected for layoff.
Are there any other questions I could answer for you?"
Script for Remaining Employee Meetings
In general, it's better to bring about "group closure" when there are
layoffs or terminations. It gives employees a chance to express their
concerns publicly and hear directly from you what occurred. This not
only minimizes concern relating to employees' own job security but
also diminishes the rumor mill.
A Sample Script to Help You After the RIF Occurs
"I wanted to call you all into a meeting to follow up regarding the
layoffs that took place earlier today in our department. As you may
know, two members of our department have been laid off. The company
has provided the affected employees with a severance package and is
working with them through this transition.
"Of course, no guarantees of job security can be given, but as far as
we understand, there aren't any other planned layoffs in our
department at this time. I wanted to let you all know to allay any
fears you might have about your own job security right now.
"We wish those laid off well, and we have treated them with the
respect and dignity they deserve. I know I can count on your support
in doing the same. I also want to remind you that if you get any
reference-checking phone calls from prospective employers or
recruiters, those calls are to be referred to me. I will in turn pass
them along to human resources as per company policy. Note that the
laid-off employees have been given copies of their last three
performance evaluations, and they're free to share those with
prospective employers to demonstrate their strengths and areas for
professional development.
"If there are no other questions, I thank you all for coming. I
appreciate your patience and understanding, and I look forward to
moving beyond this difficult period."
Written Documentation Caveats
Line managers often are asked to select individuals for layoffs based
on certain criteria. For example, if you are asked to eliminate 12
people from a 15-person department, you may be asked to justify your
decision in terms of whom to retain and whom to lay off.
When that's the case, it may be advised to create a comparison group
evaluation form that highlights performance reviews, oral or written
disciplinary communications, attendance records, tenure, experience
prior to joining your company, education and technical skills or
certifications.
Such documents are meant to encourage an objective evaluation process,
but in case of a class-action discrimination lawsuit, the documents
become subject to subpoena in the discovery process. One way to lessen
the chances (there's no guarantee) of having this documentation
subpoenaed is to designate the documentation as attorney-client
privileged.
Your in-house or outside counsel will recommend that you write at the
top of each evaluation page: "Privileged and Confidential: Prepared at
the Request of (attorney's name)."
The legal rules and guidelines of the attorney-client privilege go
beyond the scope of this article. Just be sure to check with counsel
first before drafting any documents relating to a layoff. More
importantly, don't write freely with little regard to the fact that
your notes may be blown up in front of a jury to demonstrate unlawful
motives on management's part.
The goal of any layoff is to treat employees with dignity and respect.
The key way to achieve this is to communicate openly and honestly with
those laid off and with those who survive and assume the remaining job
responsibilities.
Retain Top Talent
It may seem unrealistic to focus on retention when you're laying
people off, but there's no other time when retention becomes more
important than when a company is letting workers go. Critically assess
who the talent is you must retain and do everything possible to do it,
including giving them a defined and key role in the turnaround after
the layoffs.
The preceding is based on information provided by The Society of Human
Resource Management. This material is provided as general information
only and does not constitute and is not a substitute for legal or
other professional advice.
Les Gore is founder and managing partner of Executive Search
International, a Boston-based, nationally recognized search firm and a
25-year veteran of the "recruiting wars." http://www.execsearchintl.com
Article Source: http://EzineArticles.com/?expert=Les_Gore
http://EzineArticles.com/?How-To-Manage-A-Layoff&id=1127451
7) BLOCKBUSTER FREE OFFER TO OUR SUBSCRIBERS
Periodically we decide to give away one of our books or products for a
limited time, no catch, to our subscribers. You don't have to register
or anything. We've decided to make available our Layoff Proofing
Yourself While You Are Still Employed Helpcard in picture format.
PLEASE NOTE. You can get this until Thursday, May 8th, 6pm EDT (that
U.S. East Coast time).
Instructions to get your free helpcard.
Go to http://www.work911.com/products/index.htm
At the bottom you will see a text link labeled FOR SUBSCRIBERS. Click
on it.
You will then be asked to provide a user name and password.
Username: subscriber
password: layoff1
You will then see too GIF files. Click on each and the helpcard (it's
two pages) should appear on your screen. If it's hard to read, magnify
it (it really looks good on the screen). Save it or print it if you
like.
Sorry for the hassle, but giveaways cost us in terms of web bandwidth,
so we need to restrict it to our loyal subscribers. Enjoy.
PS. If you encounter a problem, let us know at c...@work911.com, and
while we can't help you on a case by case basis, we'll try to remedy
any problems in our next newsletter.
8) Our Sites:
Just a quick summary of our sites that have information on the
following topics:
Leadership Resource Center: http://work911.com/leadership-development/index.html
Communication Resource Center: http://www.work911.com/communication/index.htm
Conflict (both workplace and family) http://conflict911.com
Business, Strategic and Personal Planning: http://www.work911.com/planningmaster/index.html
Performance Management & Appraisal: http://performance-appraisals.org
Customer Service: http://customerservicezone.com
Our Main Site: http://www.work911.com
Multi-Purpose Articles Database: http://www.articles911.com
To new subscribers: The work911 newsletter is published no more than
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articles on all things work related, and contains other work related
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Don't forget that you can access free, useable previews of over twenty
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