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To lay off or not to lay off – that is the question! - The Board is putting pressure on me to cut heads

“Let me see if I am clear on this. It sounds to me as if all the strategies aimed at increasing the top line have come to nothing and that the only thing that is making any difference at the moment are some strategies related to cost-cutting. Correct me if I am wrong but I am sensing two almost contradictory things here: firstly, you seem to feel uncomfortable with the idea of pursuing cost-cutting exercises; and secondly, you seem to be acknowledging that this is the area that will provide you with the biggest return in the circumstances. Is this your dilemma?’

“Yes, I suppose it is when you put it like that. But it is a little more than that. The Board is putting pressure on me to cut heads – the normal response in these circumstances. Sure it will give the biggest saving on costs but I have been avoiding doing that.”

“What has caused you to take this line?”

“Well, it is more than the fact that people’s lives are at stake here – although I have always found it difficult to retrench people because of this. It is also because I have seen too often too many people being cut and, no sooner is one through that process, and one is in an upturn and employing again. No one ever seems to take into account the costs of recruiting, hiring and training new people.”

“Can I see if I am clear on what you are saying? I hear you say that you are under pressure to cut jobs but that you want to ensure that, if you take this route, your people are dealt with as humanely as possible and that you get the proportions right so that you save enough now whilst positioning yourself favourably for the upturn when it comes. Is that accurate?” Mary nodded and Sipho continued, “Between the lines, I also hear you saying: ‘if only I had other alternatives!’ Am I reading this correctly?” Another nod from Mary. “Okay, so what would you like to achieve in this session?”

“I think I would like to explore laying off but the process typically takes six to eighteen months so I would also like to explore my other options as retrenchment might bring too little too late – but if we end up laying off, which I am sure we will need to do, then I would like to explore how best we can do this with the futures and feelings of our people in mind, both those that leave and those that stay.”

“Just before you do, can I ask you to rate, on a scale of 0 to 10, how great your dislike of retrenching people is?’

“Wow, I reckon that on the way here I would have put it at a 7 or an 8 but one tends to forget that one can take steps to make a retrenchment process less traumatic – so, bearing this in mind, I would rate my aversion at a 4 or 5.”

“Good, thank you. I guess the company’s values displayed so prominently would also play a role in how a retrenchment process would roll out here?” Mary’s eyes almost gleamed and Sipho continued. “Now let’s look at our various options for cost-cutting. We already have retrenchment on the table. What different types of retrenchment have you been exposed to in the past?”

“Of course, I was forgetting – as part of the retrenchment process we will offer voluntary retrenchment.”

“Okay, can you think of five other areas where you could cost-cut and make a material difference?”

“Um, we could cut down on flights so that only flights in relation to stuff that is essential and where the same result can’t be done by teleconference, telephone, email or any other means will be allowed – but they need to show it is absolutely necessary. Oh yes, and we would make quite a big saving if we merely insisted that no one flies business or first class. Does that count as one or two alternatives?’

“I think we will put that down under the heading of flights – so, only one I am afraid,” Sipho responded, his grin almost filling his face.

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