Bizcovering > Employment

Corporate Downsizing: How Can You See It Coming?

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Reports can be run on just about anything, especially expenses and computer usage. The bottom line is, you can be fired for breaking any kind of written company policy without warning, especially if it is zero tolerance.

Again, a dismissal of this nature saves the company more money than just salary. That is why tactics like this are used. So, be very careful.

New Leadership

Be leery of a new regime. If changes are being made at the senior management level it is for good reason, and there is a plan. Most of the time the company is looking for fresh ideas to increase business and decrease costs. With so many lean management structures out there corporations are looking to do less with more; meaning more work and less bodies. By bringing in senior leaders with vast experience in leadership tools like Sigma Six, the first thing they will look at is head count. Most managers like this will be looking to make an immediate impact to the bottom line, by creating savings and cutting costs. The easiest way to do that is to cut payroll and eliminate jobs.

Job Justification

Most companies have detailed job descriptions for every position on file in the human resource department and in your manager's files. If your boss or a member of HR department asks you to document your job, daily routines and tasks, this could be an indication that your position is being reviewed and monitored for possible elimination. They will try to sugar coat it saying they are doing it for all positions. But, the realization is they probably are not. So, unless your position is brand new, or you know that it is being restructured, be inquisitive and seek the exact root cause for this type of inquiry.

Relationship Changes

If you get along well with your boss and co-workers, and all of the sudden you feel like something is changing, it probably is. Stay in tune to how you are being treated and for accusations that are out of the ordinary. For example, if your boss starts to tell you that your co-workers are complaining about you for petty things like talking too loud or laughing, it could be a sign of things to come. Unless you have a reputation for that kind of behavior, this is another smokescreen. Your boss could be purposely creating excuses so he has a case to let you go.

Salary Level

If you are not a senior manager, but your salary is one of the highest in your department, you are a prime target for downsizing. Most mid-level management positions are replaceable or can be eliminated if the level above and below can take on the work. Remember, the company is looking at moves that will have a big impact to the bottom line. If your salary is $75,000 to $100,000, you have a bonus program, a large 401K, and have full benefits your total impact to the company is over $200,000 per year. Cut five jobs like that, and they just saved the company one million dollars.

Signs From Your Boss

If during any kind of meeting, your boss indicates that he can run the group or department with less people, do not dismiss this. In all likelihood he is looking to eliminate jobs, and it could be yours.

Most of the time, revelations like this come from a new manager, or a manager who is under extreme pressure to cut costs. If you and your group have been told about this idea, you can bet it has already been discussed and agreed upon at the highest management levels. Simply put, a plan like this will not be made public knowledge, unless it has been approved. Some times this manager is brazen enough to tell you a plan is already in the works. If he does, get your resume out because you could be losing your job.

Protocol Broken

In most companies there is an accepted protocol for dealing with different levels of employees. For instance, if the VP requires something from a mid level manager or supervisor, he usually tells his director or sr. manager. Or if a director needs something from non-management personnel they usually tell that person's manager.

If you are seeing continuous examples of your boss and other managers bypassing you, and going straight to someone who reports to you, this is could be another sign that something is up. They are testing that person to see if they can handle higher-level tasks and projects, and at the same time they are sending you a message. That message being, we do not need you.

Grooming a Replacement

One of the primary responsibilities of any manager is to groom a replacement. A manager strives to bring in and train someone to take their position, so they can continue to grow and move up the corporate ladder. During this process a manger promotes the subordinates good works, exposes them to other managers and teaches them the inner workings of the management position. However, this can be a catch twenty-two. If you groom someone well, and the company is performing poorly, you can very likely be replaced by the person you groomed. Unfortunately, you can get punished for doing this part of your job well.

Conclusion

In the corporate world, there is nothing more devastating than being victimized by a blind-sided firing. The only things you can do are make yourself aware of the company's current financial performance, look for signs of downsizing and prepare yourself to possibly move on. Err on the side of caution. Do not ever take the stance that this will never happen to me, because trust me it can. If you have a feeling that something is not right speak up to try and find out what is going on and get your resume out there through recruiters and job search engines. You never know, you may find a better job before they have a chance to dismiss you.

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Comments (2)
#1 by LA, Apr 11, 2008
I find it hard to believe that people are complaining about an unemployment rate that is below 5%

#2 by  leannehume, Nov 7, 2008
This is good Peter, a lot of information in there and well writen.
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