Time to Layoff Some Employees

Time to Layoff Some Employees

Many companies in the United States have laid off some employees as part of their survival during The Great Recession. While the economy has not yet fully recovered (it may take a decade or longer to fully recover what has been lost) there are signs of a recovery in the works. That means it is time to conduct one more employee performance evaluation and lay off another 10% of your workforce.

Why would you want to layoff employees now, when the recovery is on the horizon?

Companies that plan strategically today and prepare for this next growth cycle are likely to be leaders within their areas for the next decade or longer.

The unemployment rate is high, meaning there are some great people out of work looking for jobs - your jobs. Many of these potential employees can be hired at a salary that is 20-30% less than you would have had to pay just 3 years ago. But in order to hire these talented individuals and build your "dream team" for the next growth cycle, you have to clean house one more time and get rid of some fine mediocre performers in order to make room for this new talent.

Feeling bad about laying off employees? These are the same employees who could give you a two week notice and go to the competition for a 20-30% increase in pay so don't feel too bad.

Not sure this model will work? Generation Electric Company does it every year. It conducts performance evaluations on all employees and dismisses the bottom 10% every year - and has for decades. Many believe this is one reason why GE remains one of the top 5 of the Fortune 500 companies.

It's not personal, it's just business.

S.A. Romeo
The Strategy Expert