When this happens there usually isn't anything you can do to stop it. Take solace though, because you are by no means alone. With the unemployment rate at 4.8%, thousands of jobs no longer exist.

What you can do is make yourself aware of your current situation, and if the outlook is bleak, prepare yourself to move on. It all starts with becoming cognizant of your company's performance and looking out for signs that may indicate something is imminent. Most of the time employees that are let go are not aware of these signs until after the fact. By becoming conscious of some of these indicators, at least you can prepare yourself and get ahead of the game by exploring other opportunities.

Here are ten signs and indications that downsizing could be on the horizon.

Profits Down

Stay in tune to how your company is doing financially, with the key indicator being net profit. A decrease in profit is the first gauge to a high-level decision maker like a CEO that something needs to change. Simply put, either costs need to decrease or sales need to increase.

There is a difference between profits being down and a company actually losing money. A decrease in profits is just the beginning. But, if the company gets to the point where they are losing money it is more likely that corrective action will be taken.

You need to educate yourself by getting in tune with the company's financial key performance indicators, and know what they all indicate. Just because the company loses money for a month or two, does not necessarily mean there is a major problem. You have to watch for trends; how much money is being lost and for how long. The longer the duration and the higher the dollar amount lost, goes in direct correlation to whether or not something needs to be done. If the projection is that they can recover, then in all likelihood downsizing will not come into play. However, if they are so far behind they cannot catch up, employees need to be aware of possible trouble on the horizon.

Check your company's history. Try to find out if they have ever lost money before. If they did, what did they do about it? If your company has never lost money before, expect there to be some panic and major changes.

Corporate Reports and Announcements

If your company leader, usually the CEO, sends out monthly or even quarterly reports stating the financial status of the company, read these very carefully, especially if the company is struggling financially. More often than not, subtle hints are passed through these announcements.

The tone of the note and the financial results are your indicators of how the company is doing and where they expect the future to go. If the tone of the note is harsh, it is for a reason. It usually indicates that changes could be coming. Again, the financials are the tell tale sign. If they are not included, ask for them. You have every right to know.

Depending on the sense of urgency, many leaders include a plan as to how they will rectify the current status of the company. Look for terms like: reevaluating personnel; getting leaner; too fat in certain departments; positions being evaluated, etc. These are very clear indications that job eliminations are coming. Very few companies, unless they are major corporations followed closely by the media, will ever make a public announcement that they will be downsizing.

Policy Warnings

This is what I call the excuse announcement or set up. If your leaders send company wide notes to all employees, you must read them. Take heed to any company wide warning or reminder of policies that they feel are being broken. Any one of these policies can be used as a cause for your dismissal. And if they are, the company is not responsible for paying a severance package. They can even reject an unemployment claim.

Examples would be: abusing email for personal use; tardiness; abusing hours; smoking; not attending meetings; abusing travel or expense accounts; harassment; internet abuse; etc.

The reality is that most employees do bend some of these rules. And even though most are quite harmless, it is irrelevant. So, tread lightly. If a note comes out saying management is watching these behaviors closely or that they are instituting a zero tolerance policy, they could very well be looking to use these as a smokescreen excuse to let you go.

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.

The Definition of Lead

On the other hand, there is nearly an entire column used to define “lead” the transitive verb associated with leadership “to travel, to show the way, or direct the course of, by going along with; conduct; guide... (1980). “Leading” is listed as one of the four functions of management. The four functions are “planning, organizing, leading, and controlling” ((2004). As cited in the text, leading is essential in functioning as an effective manager.

David and Goliath

Amazing stories have stood out in our history lessons spanning the lifetimes of our ancestors and ours depicting various leaders and their selflessness and heroism. These stories continue to motivate and inspire us to achieve greatness. When we think of leaders, we think of David, who as a small lad, stood up against the feared giant, Goliath, and killed him. Although the odds were very much against him, he rose up to the challenge, and conquered the enemy. In one courageous move, he inspired armies to follow him. Had he been a manager and not a leader, would the goal have been accomplished?

Vision

A leader has vision. David envisioned Goliath defeated. In his mind's eye, he saw the victory. A manager, plans things out, and reviews his plans. There is always plan “A” and plan “B” in case plan “A” doesn't work.

He Organizes

It is his job to recruit the type of workforce needed to the job site, and then to specify job duties, allocate resources, and maximize work conditions to achieve the highest level of potential possible (2004).

He Motivates

He must then work closely with his staff in order to teach and motivate them. He needs to be able to not only share his vision, but demonstrate it.

He Leads by Example

This is where his leadership skills come into play. Managers “talk the talk”, but leaders “walk the walk”. Telling staff to be to work at a certain time, when management strolls in at whatever time they feel like, is not demonstrating true leadership. A leader is a part of the team, and as such works side by side with the team members.

Leaders Listen

The leaders communicate, and listen effectively to other staff. They appreciate the input and insight.

Leaders are Flexible

The fourth function of management is controlling. This is used to monitor progress, and implement changes when necessary to be certain that the team is going in the right direction.

When progress is not properly gauged, it becomes impossible to judge whether the goal is being met. While a manager is measuring progress, and making whatever changes need made, a leader is progressing with the team, and can make the changes instantaneously.

Leaders are Observant

Managers have different options in resolving issues, such as progressive discipline: warning, writing up and finally terminating. In the event of terminating staff, they now have to deal with retraining a new staff member, and easing the fears of the remaining staff members, who are wondering if they will be terminated next. Leaders, on the other hand, work closely with their staff, and in doing so, may have seen the issue that needed resolved long ago. Perhaps, it was something that could have been worked out easily, with further instruction, resifting of duties or a rescheduling of hours. If that was the case in resolving the issue beforehand, the fired individual would have become a more loyal and dedicated staff member, who would now be willing to give 100%, and remaining staff would not be working in fear, and would feel renewed dedication to their tasks.

Leaders are Team Players

While working closely with the leader, the team catches his spirit, and comes to work feeling motivated to perform well. Work does not feel like another four letter word, something dreaded, but as an enjoyable task. Attendance will improve, as will work production.

People, who are stressed, have higher overall incidents of illness, which is sometimes created by a stressful work environment. Even healthy people put their health at risk, by being involved in constant conditions of stress, as reported by Jennifer Warner in WebMD. “Studies show people with medical conditions such as heart disease, mental illness, or other chronic diseases are most vulnerable to the negative consequences of stress, but healthy people are also at risk” (2005).She goes on to advise that constant stress can increase the risk of heart attack, stroke, and even death. There are many research studies relating to illness and stress.

Another site describes how a hormone referred to as neuropeptide Y is released by the body during periods of stress. One of the Garvan Institute in Sydney's researchers, Professor Herzog, stated “And it's known for example that it (neuropeptide Y) regulates blood pressure and heart rates so your heart rates go up... Now we have proven without doubt that there is a direct link and that stress can weaken the immune system that makes you more vulnerable when you for example have a cold or flu and even the more serious situations such as cancer can be enhanced in these situations” (2005).

Leaders Care

This is another compelling reason to enlist true leaders, as managers in an organization. Leaders embody compassion, and instill vision. Leaders are highly motivated, have a basic knowledge of the job that needs to be done and the requirements needed to perform that job. A leader can draw on experience, or knows how to tap into the knowledge needed to perform the assignment. He or she has enthusiasm and drive. A manager might instruct staff to do an assignment, but a leader knows how to do that assignment, and leads by example. A leader would not ask you to do something unethical, or unfair, because they have your best interest at heart, and that of the organization. When staff's interests are overlooked in order to achieve a goal, the goal becomes skewed.

Leaders Train Leaders

A goal must be a worthy mission, and staff will unite to pursue the goal, when lead by a leader, a leader who bears in mind the cost and the prize. If the cost is too high for just one member, the team is unable to perform as well as it could. The prize is all the more glorious, when each member has followed their leader to the finish line, and received the trophy. Up from the ranks, new leaders will emerge, to replace the existing leader, not from confrontations, but because the leader has successfully challenged and taught. The current leader may feel the need to involve their selves with an even greater challenge, as they move up the corporate ladder or endeavor to change career paths.

Absenteeism and Punctuality Policies

Having an absenteeism and punctuality policy is important for any business with employees. Such policies help keep records on missed work time, encourage employees to attend work, and set a case for dismissal when an employee fails to follow the obligation of his/her work terms. The right kind of policy can save your company tons of money as the years go by.

The first thing an owner has to determine is what status his employees fall into. Salaried and professional employees are typically considered “exempt” while hourly workers are “non-exempt”. Exempt means that the employees are not based upon their time at work but on the function of their job. They can work longer hours without paying overtime. Non-exempt employees are paid for each minute they are at work and are entitled to overtime pay.

Hourly or non-exempt workers can have their pay reduced for anytime they miss from work while salaried or except workers cannot. For example, if a salaried worker misses 4 hours a day but work any part of that day their pay cannot be affected. The only time a salaried worker can have his/her pay adjusted is when on a leave of absence or when an entire day is missed for personal reasons. To punish the lateness of a salaried worker by adjusting pay creates a risk of entitling them to overtime.

Attendance policies vary from company to company and from state to state. However, the best attendance policies usually have a progressive component to them. For example, verbal warning, written warning, suspension and termination would be part of a progressive discipline policy. The other method that could be used is the point system. As the worker receives points for attendance he/she will incur increase discipline. Once he/she has reached the threshold he/she will be terminated.

The use of an absenteeism policy that is progressive ensures that all workers are treated fairly. They are warned each time they are disciplined and cannot claim ignorance. Furthermore, the documentation provided at each level of the discipline gives an appearance of professionalism on behalf of the organization and a sense of fairness to the employee.

Salaried workers can be under the same progressive attendance system as an hourly worker. The difference is that they cannot have their pay deducted. Once must also consider that salaried workers should be given notes-to-file instead of employee counseling reports (discipline) so that their “at-will” status is not in jeopardy.

According to the U.S. Bureau of Labor Statistics a total of 2.8 million workdays a year are lost due to illness or injury. Assuming that the average worker made around 40K per year we would add 35% for benefits to come to a total compensation cost of 54K per year per employee. If we divide this 54K by 2080 worked in a year we come to $25.96/hour labor cost. A single employee absence for a day would cost the average company around $207.68 per day. Thus if you have 10 absences a year your cost would be around $2000. This figure doesn't include the cost of the actual profit you would have lost due to not getting your products or services finished.

Methods of Reducing Absenteeism

• No-fault attendance policy
• Progressive discipline
• Incentives for good attendance.
• Make the workplace more fun.
• Pre-employment physicals and drug tests.
• Conduct employment history investigations before hiring.
• Value the attendance and contribution of each worker.
• Attendance should be included as one of the criteria for raises/promotions.
• Request medical documentation for all unexcused absences.