Ivory Tower Nonsense

Rick, Knut, Gary, Vicky, Mark, Kelly, Doug, and Larry.  These are the people who I have laid off during the past 2 or 3 years.  Each one was an excruciating decision, followed by  a few weeks of anguish.  As lay off day approaches, anxiety increases.  The days before "Tell Day" day offer little sleep.  Then "Tell Day" arrives and stress level goes off the charts.  Each employee is greeted by the angel of death (me) at their cube doorway asking them to follow to a conference room.  Once there, I notify them of a company decision to reduce workforce, and those decisions have impacted them.  Most are shocked.  A few cry.  No one has shown anger.

After delivering the message, I explain their severance package and we move to their cube to collect personal belongings.  One person expected the lay off and was already packed.  From notification to building exit only 5 minutes elapsed.  Most require 15-30 minutes.  It is a difficult and awkward time for both of us.  Once all notifications are delivered and former employees have left, I gather the survivors together and announce the job actions I have taken.  This is the time I worry most of angry demonstration, but no incidences so far.

Occasionally, I follow up or hear from a laid off employee.  Even after they are no longer part of my team, I remain concerned.  Gary was a new father.  Mark was planning to marry within a few weeks of the lay off.  Kelly was a college hire the company had committed to train for 3 years, then reneged.  Larry was a 50+ white male with little chance of recovering his former income level.

It feels very odd to reach out on facebook to someone I have laid off, but I have twice. Both times the former employee responded with an update on their new careers.  Both found employment quickly.  One is now making more than they did in their old job.  Both seem happy about their change.  Neither harbored ill feelings towards me.  I have heard of others that acquired good jobs before their severance ran out.  It usually works out, even in these bad economic times.

Until yesterday, I was able to wrap my head around the reasons for each lay off.  The economic and business environment was such that any well run company was forced to reduce expenses to remain in business.  In most companies, labor costs account for the majority of expense spending.  In this economy, if a company is serious about remaining in business, hard decisions must be made.  The manager is merely one cog in the machine that carries out these decisions.  I am fine with that.  I don't enjoy it and would worry if I did.  But I understand it.  Lay offs happen.  Laying off a few people to save the company and remaining jobs is better than letting a company go bankrupt.

Yesterday I added one more name to my list of lay offs.  I let Melody go.  She was an average employee on a team of high performers.  The amount and quality of work she did was adequate.  Over her 14 year career she had always been an effective contributor.  So did I need to reduce expense in order to support company profitability?  I did not.  This lay off was a result of an Ivory Tower desire to follow the principals of Jack Welch.  Jack said that you reward your best performers and replace your worst.  The anguish, anxiety and stress leading up to this "Tell Day" was higher than any other.  Even though I have known it was coming for some time now, I could never justify it in my own head.

An executive who acts on that principal without adequate forethought, is completely unaware of the carnage they create.  Bad behavior through the entire company ranks is result.  Employees quickly understand they need to perform better than their peers, or make their peers look worse than they do.  Managers begin to look ahead to the next round to make sure they have a below average employee to sacrifice.  Morale and job satisfaction decline.  Everyone loses the company loyalty that is so important in maintaining high performing teams. 

Melody will be fine. She will likely land on her feet and obtain a good job for a good employer.  My worry is now the 23 employees I did not lay off.