TechPulse 360

Communication with employees is key to keep company's morale and build loyalty recommends executive management expert Jason Zickerman.

These are unprecedented times for a lot of people in the workforce. Most of the younger employees never experienced such deep and massive layoffs that are now being reported live on Twitter.

Communicating with employees is key to make layoffs less painful

Although layoffs are needed to align the cost structure with current business conditions, a lot can be done to avoid them in the first place. “It all start with communicating with the employees. They must see that the employer is trying everything it can to keep them. You are building loyalty and you’ll get more from the employees,” advises Jason Zickerman, an executive management and operations expert and the president of The Alternative Board.

Here a 4 some creative ways Zickerman suggests to reduce payroll costs while avoiding straight layoffs:

1. Move a portion of the staff from a 5 to a 4-days work-week. People fill their time with work they have. Companies will drive productivity up and get more out of the 4 days;
2. Encourage “non-paid” vacations or time off, extend end year-end breaks;
3. Allow employees to take sabbaticals to learn new skills, get educated but at a reduced pay;
4. ‘Swap’ employees with other companies or non-profit organisations. I remember Cisco has done such a thing to retain key employees despite its last massive layoff in 2001.

But if layoffs are inevitable to save the company, the best way to manage it is to act as a human being, adds Zickerman. “Because you had this constant communication with employees, they know what’s happening, what you are doing for them. Also, it’s as much important to tell the ones that stay their importance for the company’s success. And keep the best ones, no matter if they cost more and more or less senior. This is a street fight,” says Zickerman.

The management expert also recommends to remove the bottom 20% performers every year if possible. “That’s a philosophy that Jack Welch, the former CEO of GE did and he became famous for that.” A discipline that could save your company one day.