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A Complimentary Webinar
Series
How to Avoid
a Layoff
1
Welcome!
2
• Company
• Topic
• Webinar
• Our Presenters
Founder and CEO
Prositions, Inc.
Serial Entrepreneur,
Human Resource
Companies
Leading Businesses Through Crises
Creative Leadership & Comp Strategies
Founder of Excellence in Training
Corporation, GeoLearning, and Prositions
EXPERIENCE
Frank Russell
3
4
Economic Downturns
1970 1980 1990 2000 2010 2020
Dot.com bust
SVP, Professional Services
@Prositions, Inc.
Talent Management Chief
@USAR Innovation
Command
1:1 Career Coaching & Consulting
Bridge Private & Public Sectors
M.S. Org. Communication
Ed.D. HRD (in progress)
EXPERIENCE
Craig Robbins
5
WAYS TO AVOID A LAYOFF:
Today’s Webinar
• Buy Time
• Compensation Alternatives
• In-Placement
• Job Sharing
• Furloughs
• Outplacement
6
DISCLAIMER:
Today’s webinar is intended to facilitate a
discussion, introduce helpful ideas and
creative thoughts, and share experiences
from experts who have led teams through
significant crises and periods of
uncertainty.
We are NOT legal experts, employment
attorneys, or financial advisors.
Please seek competent legal and financial
advice before making any decisions or
taking any actions.
7
Why Avoid a Layoff,
if possible?
• Preserve operational
capability
• Retain great talent
• Improved morale for all
• Manage brand reputation
• Build camaraderie & loyalty
• Alternative options exist
• If possible, it’s the right
thing
to do for employees & the
economy
8
CASE IN POINT
Mark Cuban, entrepreneur and Dallas Mavericks
owner, has been an outspoken advocate for
employees during this crisis.
9
ANOTHER CASE IN POINT
Marc Benioff, CEO and Founder of Salesforce,
has an 8-Point Plan to help employees survive.
10
Benioff wants CEOs to take a 90-Day “no
layoff” pledge to help employees survive
the Coronavirus impact on the economy.
ANOTHER CASE IN POINT
Carolyn McCall, CEO of ITV in Great Britain, will
take significant compensation cuts.
11
McCall and other board members
and directors will take salary and
other compensation cuts.
Searching for
Solutions
Starting with the least disruptive means,
consider:
1. Cash conservation strategies – Buying Time
2. Options already on the table (PTO, Vacation)
3. In-placement
4. Job sharing
12
Buy Time
If we believe this will
get better over time:
13
• Reduce or cut expenses to the bone
• Delay activities
• Cancel plans
• Collect receivables and debts
• Borrow money
• Use government programs
• Leverage vendors and partners
• Renegotiate all deals and payments
• Search for hidden value and assets
• Barter for essential supplies and services
• Tap the collective mind and involve your team
PTO, Sick Leave,
& Vacation
• Ask your team for creative ways to survive
• Require or ask your employees to take
accrued or credited PTO or vacation days
• Allow them to contribute PTO for others
• Having policies that cover these situations is
helpful
• Check with local, state laws, and regulations
• Employment contracts, collective bargaining,
and other factors may impact this
• SHRM has helpful information and guidelines
14
Early Out and
Retirement Options
• Can be voluntary or forced
• Tend to be generous to incentivize
employees to accept
• Can be risky because compensation most
likely will go down
• Opportunity to explore new career or
other interests
• Consider all benefits options including
insurance, etc.
• May be the best choice, if the organization
is considering other cost reductions or
layoffs
15
16
Links:
https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
https://www.dol.gov/sites/dolgov/files/WHD/Pandemic/FFCRA-Employee_Paid_Leave_Rights.pdf
https://www.dol.gov/sites/dolgov/files/WHD/Pandemic/FFCRA-Employer_Paid_Leave_Requirements.pdf
https://www.roi-nj.com/2020/03/31/law/ask-the-experts-do-employees-have-to-use-pto-if-they-cant-work/
https://www.sgrlaw.com/client-alerts/the-coronavirus-is-giving-employers-a-headache-you-have-questions-we-have-answers/
https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/canwelimitorrequireemployeestousepto.aspx
Early Out and Retirement
https://www.shrm.org/hr-today/news/hr-magazine/documents/7328_article_1192.pdf
https://finance.zacks.com/retirement-buyout-1554.html
https://money.usnews.com/money/retirement/articles/how-to-evaluate-an-early-retirement-offer
Families First Coronavirus Response Act
What is
In-placement?
Alternative placement options
inside the organization.
• Identify “hidden talents”
• How is talent demand
shifting?
• Which individuals need the
most help?
17
CASE IN POINT
• Industrial supply company
with numerous Business
Units
• 1 serves local restaurants.
Another serves national
hospital and healthcare
systems
• Restaurant sales crash
• Decision is made to shut
down the division
• What to do with the
workforce? Layoff… Not so
fast!
18
In-placement Model
19
ASSESS
• Talent supply &
demand across the
organization
• Current hiring
initiatives
• Employee career
preferences
COMMUNICATE
•
• With managers and
employees
• Discuss options
including pros/cons
• Be honest,
compassionate, and
empathetic
PREPARE
• Notify both teams
of pending changes
• Prepare the
workspace
• Prepare
administratively
PLACE
• Place internally
• Onboard
• Train
• Coach & mentor
ASSESS, COMMUNICATE, PREPARE, PLACE
WHEN:
• One person is already
doing the work of 2+
• You were going to hire
support
• People would rather work
part-time
Job Sharing
HOW:
• Clearly define roles
• Divide tasks
• Coordinate schedules
• Leverage technology
for project
management &
communication
20
CASE IN POINT
“We may have a nurse that
wants to work part time.
That nurse can make an
arrangement with another
nurse,” she said. “They can
partner together and still
complete the one FTE [full-
time equivalent]
requirement.”
Queenie Plater, VP of HR, Johns
Hopkins Medicine Group (SHRM
2016)
21
Benefits:
• Creates a win-win
• Allows both parties to focus on
work and family
• Could produce more convenient
schedules
• Retains talent
• Reduces future hiring and training
costs
22
Comp and Benefit
Reductions
• Reduce or eliminate overtime
• Shorten working hours
• Reduce or eliminate bonuses
• Increase employee benefit contributions
• Decrease or postpone commissions
• Temporarily cut base pay
• Eliminate special perks for employees
• Start at the top
23
CASE IN POINT
24
Coronavirus prompts Gravity
Payments staff to take pay cuts
“One of the most humbling moments of my entire life”
Dan Price - CEO
CASE IN POINT
25
Alternate
Compensation
Options
• Current reductions with future increases
(less now, more later); contingent on
economic factors
• Equity as an incentive to stay
• Delay commissions and bonuses
• Increase in PTO or vacation time, accrued
over time
• Explore other non-cash incentives
26
27
Furlough: an employer-
mandated, temporary unpaid
leave from work typically used
as a cost-saving measure.
The CUT
Different from a layoff
• Intend for employees to return to
work
• Avoid costs associated with turnover
or talent acquisition
• Helps to maintain morale & loyalty
• Retain the position and remain
employed
• No gaps in employment, no job
search
• Sometimes retain health benefits
• Credit toward pension and other
benefits continues
28
Outplacement
Solutions
Career transition support typically
including help with:
• Resumes, cover letters, & social
profiles
• Job search strategies
• Strategic networking
• Application coaching
• Interview preparation
• Salary negotiations
29
WHEN:
• Case of last resort and a
layoff must take place
• When 1 person, a team, a
department, or a whole
business is impacted
• People need help & support
Outplacement
WHY:
• Professional help, support,
and motivation
• Maintains brand reputation
• Helps retain those thinking
about exiting
• Can mitigate or eliminate
liabilities
30
31
COMMUNICATION BEST
PRACTICES• Lead with confidence
• Demonstrate empathy
• Be open and transparent
• Be credible; provide objective facts and
data
• Prioritize peoples’ needs
• Be accessible
• Prepare leaders at all levels to communicate
32
Questions
Link to Webinar Video
MicroLearning Bundles
33
Bonuses!
Copy of the Presentation
Guide and Infographic

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How to Avoid a Layoff

  • 2. Welcome! 2 • Company • Topic • Webinar • Our Presenters
  • 3. Founder and CEO Prositions, Inc. Serial Entrepreneur, Human Resource Companies Leading Businesses Through Crises Creative Leadership & Comp Strategies Founder of Excellence in Training Corporation, GeoLearning, and Prositions EXPERIENCE Frank Russell 3
  • 4. 4 Economic Downturns 1970 1980 1990 2000 2010 2020 Dot.com bust
  • 5. SVP, Professional Services @Prositions, Inc. Talent Management Chief @USAR Innovation Command 1:1 Career Coaching & Consulting Bridge Private & Public Sectors M.S. Org. Communication Ed.D. HRD (in progress) EXPERIENCE Craig Robbins 5
  • 6. WAYS TO AVOID A LAYOFF: Today’s Webinar • Buy Time • Compensation Alternatives • In-Placement • Job Sharing • Furloughs • Outplacement 6
  • 7. DISCLAIMER: Today’s webinar is intended to facilitate a discussion, introduce helpful ideas and creative thoughts, and share experiences from experts who have led teams through significant crises and periods of uncertainty. We are NOT legal experts, employment attorneys, or financial advisors. Please seek competent legal and financial advice before making any decisions or taking any actions. 7
  • 8. Why Avoid a Layoff, if possible? • Preserve operational capability • Retain great talent • Improved morale for all • Manage brand reputation • Build camaraderie & loyalty • Alternative options exist • If possible, it’s the right thing to do for employees & the economy 8
  • 9. CASE IN POINT Mark Cuban, entrepreneur and Dallas Mavericks owner, has been an outspoken advocate for employees during this crisis. 9
  • 10. ANOTHER CASE IN POINT Marc Benioff, CEO and Founder of Salesforce, has an 8-Point Plan to help employees survive. 10 Benioff wants CEOs to take a 90-Day “no layoff” pledge to help employees survive the Coronavirus impact on the economy.
  • 11. ANOTHER CASE IN POINT Carolyn McCall, CEO of ITV in Great Britain, will take significant compensation cuts. 11 McCall and other board members and directors will take salary and other compensation cuts.
  • 12. Searching for Solutions Starting with the least disruptive means, consider: 1. Cash conservation strategies – Buying Time 2. Options already on the table (PTO, Vacation) 3. In-placement 4. Job sharing 12
  • 13. Buy Time If we believe this will get better over time: 13 • Reduce or cut expenses to the bone • Delay activities • Cancel plans • Collect receivables and debts • Borrow money • Use government programs • Leverage vendors and partners • Renegotiate all deals and payments • Search for hidden value and assets • Barter for essential supplies and services • Tap the collective mind and involve your team
  • 14. PTO, Sick Leave, & Vacation • Ask your team for creative ways to survive • Require or ask your employees to take accrued or credited PTO or vacation days • Allow them to contribute PTO for others • Having policies that cover these situations is helpful • Check with local, state laws, and regulations • Employment contracts, collective bargaining, and other factors may impact this • SHRM has helpful information and guidelines 14
  • 15. Early Out and Retirement Options • Can be voluntary or forced • Tend to be generous to incentivize employees to accept • Can be risky because compensation most likely will go down • Opportunity to explore new career or other interests • Consider all benefits options including insurance, etc. • May be the best choice, if the organization is considering other cost reductions or layoffs 15
  • 16. 16 Links: https://www.dol.gov/agencies/whd/pandemic/ffcra-questions https://www.dol.gov/sites/dolgov/files/WHD/Pandemic/FFCRA-Employee_Paid_Leave_Rights.pdf https://www.dol.gov/sites/dolgov/files/WHD/Pandemic/FFCRA-Employer_Paid_Leave_Requirements.pdf https://www.roi-nj.com/2020/03/31/law/ask-the-experts-do-employees-have-to-use-pto-if-they-cant-work/ https://www.sgrlaw.com/client-alerts/the-coronavirus-is-giving-employers-a-headache-you-have-questions-we-have-answers/ https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/canwelimitorrequireemployeestousepto.aspx Early Out and Retirement https://www.shrm.org/hr-today/news/hr-magazine/documents/7328_article_1192.pdf https://finance.zacks.com/retirement-buyout-1554.html https://money.usnews.com/money/retirement/articles/how-to-evaluate-an-early-retirement-offer Families First Coronavirus Response Act
  • 17. What is In-placement? Alternative placement options inside the organization. • Identify “hidden talents” • How is talent demand shifting? • Which individuals need the most help? 17
  • 18. CASE IN POINT • Industrial supply company with numerous Business Units • 1 serves local restaurants. Another serves national hospital and healthcare systems • Restaurant sales crash • Decision is made to shut down the division • What to do with the workforce? Layoff… Not so fast! 18
  • 19. In-placement Model 19 ASSESS • Talent supply & demand across the organization • Current hiring initiatives • Employee career preferences COMMUNICATE • • With managers and employees • Discuss options including pros/cons • Be honest, compassionate, and empathetic PREPARE • Notify both teams of pending changes • Prepare the workspace • Prepare administratively PLACE • Place internally • Onboard • Train • Coach & mentor ASSESS, COMMUNICATE, PREPARE, PLACE
  • 20. WHEN: • One person is already doing the work of 2+ • You were going to hire support • People would rather work part-time Job Sharing HOW: • Clearly define roles • Divide tasks • Coordinate schedules • Leverage technology for project management & communication 20
  • 21. CASE IN POINT “We may have a nurse that wants to work part time. That nurse can make an arrangement with another nurse,” she said. “They can partner together and still complete the one FTE [full- time equivalent] requirement.” Queenie Plater, VP of HR, Johns Hopkins Medicine Group (SHRM 2016) 21
  • 22. Benefits: • Creates a win-win • Allows both parties to focus on work and family • Could produce more convenient schedules • Retains talent • Reduces future hiring and training costs 22
  • 23. Comp and Benefit Reductions • Reduce or eliminate overtime • Shorten working hours • Reduce or eliminate bonuses • Increase employee benefit contributions • Decrease or postpone commissions • Temporarily cut base pay • Eliminate special perks for employees • Start at the top 23
  • 24. CASE IN POINT 24 Coronavirus prompts Gravity Payments staff to take pay cuts “One of the most humbling moments of my entire life” Dan Price - CEO
  • 26. Alternate Compensation Options • Current reductions with future increases (less now, more later); contingent on economic factors • Equity as an incentive to stay • Delay commissions and bonuses • Increase in PTO or vacation time, accrued over time • Explore other non-cash incentives 26
  • 27. 27 Furlough: an employer- mandated, temporary unpaid leave from work typically used as a cost-saving measure. The CUT
  • 28. Different from a layoff • Intend for employees to return to work • Avoid costs associated with turnover or talent acquisition • Helps to maintain morale & loyalty • Retain the position and remain employed • No gaps in employment, no job search • Sometimes retain health benefits • Credit toward pension and other benefits continues 28
  • 29. Outplacement Solutions Career transition support typically including help with: • Resumes, cover letters, & social profiles • Job search strategies • Strategic networking • Application coaching • Interview preparation • Salary negotiations 29
  • 30. WHEN: • Case of last resort and a layoff must take place • When 1 person, a team, a department, or a whole business is impacted • People need help & support Outplacement WHY: • Professional help, support, and motivation • Maintains brand reputation • Helps retain those thinking about exiting • Can mitigate or eliminate liabilities 30
  • 31. 31 COMMUNICATION BEST PRACTICES• Lead with confidence • Demonstrate empathy • Be open and transparent • Be credible; provide objective facts and data • Prioritize peoples’ needs • Be accessible • Prepare leaders at all levels to communicate
  • 33. Link to Webinar Video MicroLearning Bundles 33 Bonuses! Copy of the Presentation Guide and Infographic

Editor's Notes

  • #2: Welcome we will begin our program soon. Today we will be using the chat feature for questions and comments. If you’re not familiar with this feature on Zoom look for he speech bubble icon. We will have time for questions at the end of the program too.
  • #3: Prositions Info and our History with Human Capital & Workforce Solutions Coronavirus Impact & Layoffs Avoiding layoffs – alternative solutions that deserve consideration Frank & Craig – advance to next slide for details
  • #4: Frank 30 second or less intro.
  • #5: 1. 1970s Oil Embargo OPEC Arab Israeli War 2. 1980s Farm Crisis and Farm Aid 2000 3. 2000 Dot.com Bubble burst 4. 2001 9-11 5. 2008 Great Recession 6. 2020 COVI-19
  • #6: Craig 30 second or less intro.
  • #7: (Craig introduces agenda) Because of COIVID-19, we’re experiencing unprecedented and unpredictable change within the economy and our organizations, and it can be difficult to make the right decisions when considering a layoff. Fortunately, numerous options exist in between “business as usual” and large-scale Reductions in Force.   Today, we’ll talk about: Buy Time Compensation Alternatives In-placement Job sharing Furloughs Outplacement (Better ways)
  • #8: Frank “We will have a slide with a number of Weblinks later that address many of the CARE Act, Family Leave, and other HR Legal issues.”
  • #9: (Frank talking from a business owner perspective) As a business leader who’s led through crises and uncertainty for decades, I spent some time thinking about certain moments when I tried the hardest to avoid laying off employees. For me, it’s always been about the people and doing right by them. I also acknowledge that sometimes it is simply not possible, and I have personally had to make the very difficult decision to let people go. However, I always try to retain people whenever possible. There are a number of reasons why you should to: Preserve operational capability. We don’t know how long the effects to our business will last, and it’s possible for any business to experience a rapid shift back to standard supply and demand levels. You don’t want to end up in a situation where your competitors creatively preserved their workforce and are ready to operate at full capacity, while you need to spend months hiring new teams to catch up. Retain great talent. Great people will go back to doing great things when this event stabilizes, and you don’t want your best and brightest employees going to work elsewhere. Improved morale for all. Let’s face it – retaining as much of your workforce will not only improve the morale of those who would have otherwise been let go, but morale throughout the entire organization will feel a boost that will last, and potentially for years to come. Manage brand reputation. The way you treat your employees now will define the way people think about your company for years to come. Build camaraderie and loyalty. By supporting your employees in their greatest time of need, you will likely create fierce loyalty that can only come from these types of shared experiences. Alternative options exist. Because we can. We can often get creative and overcome these challenges. It’s the right thing to do. IF POSSIBLE, it’s the right thing to do.
  • #10: (Frank shares comment from Mark Cuban, Marc Benioff, Carolyn McCall) We understand that everybody has resource limitations but trying our best will go a long way in preserving the reputation of our brands… if by those who are in fact let go. The effort will count!
  • #11: (Frank shares comment from Mark Cuban) We understand that everybody has resource limitations but trying our best will go a long way in preserving the reputation of our brands… if by those who are in fact let go. The effort will count!
  • #12: (Frank shares comment from Mark Cuban) We understand that everybody has resource limitations but trying our best will go a long way in preserving the reputation of our brands… if by those who are in fact let go. The effort will count!
  • #13: Frank
  • #14: (Frank will discuss adjustments to pay and benefits) Just like the coronavirus infection model, we wan to “flatten the cash burn curve.”
  • #15: Can people give or loan days to others? Family Leave and CARE act. Need legal and professional advice here! https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/canwelimitorrequireemployeestousepto.aspx https://www.sgrlaw.com/client-alerts/the-coronavirus-is-giving-employers-a-headache-you-have-questions-we-have-answers/ https://www.roi-nj.com/2020/03/31/law/ask-the-experts-do-employees-have-to-use-pto-if-they-cant-work/ https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
  • #16: https://www.shrm.org/hr-today/news/hr-magazine/documents/7328_article_1192.pdf https://finance.zacks.com/retirement-buyout-1554.html https://money.usnews.com/money/retirement/articles/how-to-evaluate-an-early-retirement-offer
  • #18: (Craig talks about tasking HR leaders to get creative in finding internal opportunities for existing employees) In-placement is the process of finding other places for, and other ways to leverage, talent within your organization. This could also include subsidiaries, affiliates, and potentially even clients! Identify hidden talents. Do the employees have other talents that could be applied elsewhere in the business? Perhaps the finance department needs additional help with modeling and forecasting and one of the business unit’s managers studied finance before pursuing a more general management career path. Consider how internal talent demand is shifting. Are there other areas of the business that will experience a spike in talent demand? Before laying off the warehouse worker who used to stock shelves with restaurant supplies, is the team doing the same for hospital supplies now in need of a few more people? Ask, who needs the most help? Are there individuals who are truly doing the work of two or more people? If so, consider job sharing (more on that later).
  • #19: (Craig will present a case to consider – provide context & engage audience with a story) Layoffs in times of crisis are often driven by short-term, impulse-driven decision making. For example, let’s consider an industrial supply company. Its many business units include one department supporting local restaurants and one supporting hospitals. Let’s assume the restaurant division’s sales have crashed, and to preserve cash the unit’s leaders have decided to close shop. Now… what to do with the employees? The most immediate, most obvious solution would be a layoff. After all, the business unit to which they belonged no longer exists so obviously the employees are no longer needed, right? NOT SO FAST! (Advance slide) Tell story about major equipment manufacturer that we helped find jobs with dealership network. Dealers happy to get highly qualified product and service people.
  • #20: (Craig will present this model to ensure in-placement success) Talking points follow bullets.
  • #21: (Craig introduces job sharing) Add notes…
  • #22: (Craig) Even before COVID19, organizations consisting of numerous employees performing the same task started introducing job sharing strategies.
  • #23: Craig presents benefits of job sharing
  • #24: (Frank will discuss adjustments to pay and benefits)
  • #25: Dan Price CEO of Gravity Payments decided before this crisis to cut his pay from $1M to $70,000 and give all employees a “living wage of $70K”. Now the employees elected to take a 20% pay cut.
  • #26: Dan Price CEO of Gravity Payments decided before this crisis to cut his pay from $1M to $70,000 and give all employees a “living wage of $70K”. Now the employees elected to take a 20% pay cut. I went to $0.
  • #27: Cedar Rapids client closed their cafeteria and ordered food from local restaurants. Buy local and posted food pictures on LinkedIn and Facebook. Now doing Pot-Lucks too.
  • #28: Craig talks about the potential need furlough employees. Give definition.
  • #29: (Craig presents differences between layoffs and furloughs and can address some advantages from a business owner perspective). Talking points hit 3 advantages for the employer. Then 4 advantages to the employee. Win-win in some cases.
  • #30: Craig presents outplacement solutions.
  • #31: (Craig presents)
  • #32: Craig presents other creative measures and considerations.
  • #33: In the remaining time we have, I’d be happy to answer any questions you have.
  • #34: As appreciation for your participation today, we’d like to offer the following: A link to the streaming video of the Zoom A downloadable copy of the PP Our Outplacement Guide In addition, we offer our Microlearning Bundle on DashTrain Winston Churchill defined success as “The ability to move from failure to failure with no loss of enthusiasm.”