Another update from the Jungle…
Jim and Tony run a venture capital fund that specializes in distressed assets. They buy companies, replace the management team, cut most of the employees to generate savings and make the company look profitable (on paper). Then they sell the company.
A business magazine features them in an article and uses the term masters of the universe. After the feature article, Jim and Tony decide to branch out from distressed assets and buy a company that has been successful without being spectacular.
Jim and Tony begin their ownership by holding a company-wide meeting with employees at which they talk about the company’s wonderful financial future. This sales pitch is interrupted by Linda who asks them to reconcile these comments with their established practice of boosting profits by firing most workers. Jim evades her question. So Larry asks pointblank how many jobs will be cut. Jim looks at Tony. Tony shrugs. The meeting ends abruptly.
After studying the company’s bottom line, Jim and Tony decide that the first employees to go are Linda and Larry. They tell Sandra, the HR rep, to prepare the paperwork. She cautions against firing two of the most respected workers. Jim looks at the org chart again and concludes they are peons.
On Friday, Linda and Larry are ushered out the door. Their first port of call is an employment law attorney where they discuss wrongful termination, retaliation, and age discrimination. The attorney has a vision of becoming famous by taking down the masters of the universe. He agrees to represent Linda and Larry.
Within weeks, a third of the workforce resigns following Linda and Larry out the door. Jim and Tony are initially relieved; they only had to fire two workers. But the remaining workforce is demoralized. Within six months, the company has lost several key clients and the bottom line is tanking. Jim and Tony call a meeting with Sandra to discuss staffing levels and the status of Linda’s and Larry’s lawsuit.
What should Sandra tell them?
- She can say that she warned them that firing Linda and Larry would have dire consequences.
- She can tell them that as masters of the universe, she expects them to solve their own problems.
- She can hand in her resignation, having already received several job offers.
The above scenario is exaggerated but may seem familiar to anyone who has experienced a change in ownership at an employer. Creating a plan with HR for handling inevitable layoffs can smooth the transition. It is also helpful to see employees as more than just a cost to the bottom line.
If your company is struggling with HR issues, Corporate Compliance Risk Advisor can help you create HR policies that are appropriate for your company’s size and then serve as a resource to your staff as the policies are implemented.
Join the HR Compliance Jungle today. Click here!
Ebook Link: https://hrcompliancejungle.com/wp-content/uploads/2015/03/skh-employee-theft.pdf
Follow us on Facebook & Twitter!
Visit us: http://www.complianceriskadvisor.com/
Ted runs a company that provides website and social media support for small businesses. Ted grew up in the advertising business when it looked a bit like “Mad Men” and some of his habits are outdated. His most annoying habit is using nicknames.
Recently, Ted agreed with his team that they needed to give back to the community by offering an internship to local college students. Judy is the first intern they hire. She’s a marketing major with an endless curiosity about all aspects of the business and a willingness to learn. Ted calls her the Elephant’s Child, after another inquisitive youngster. Judy isn’t familiar with Rudyard Kipling’s “Just So” stories and thinks Ted’s nickname is demeaning.
Alan owns an auto repair shop and he seems to have a revolving door for employees. He knows that not everyone wants to be a grease monkey and finding employees is not easy. In fact, he’s hired people who otherwise would never have experienced the joys of employment. With so much turn over Alan never created written policies for his employees.
Alan lets them use some of his tools and equipment to build cars that they race on dirt tracks during the summer. If they don’t wreck their dirt track car, they celebrate by getting drunk on Jack Daniels (black label only; green label is for sissies). When work is slow, Sam and Zeke also like to do a little target practice at the makeshift shooting range they created on the back part of Alan’s property.
Another update from the Jungle…
Drew was happy to delegate employee issues to Tina. But Tina didn’t know anything about employment laws or human resources best practices. She Googled key terms periodically and filled out paperwork to the best of her ability. The company’s CPA was able to answer her questions related to payroll processing, but basically Tina was on her own.
Yesterday, Martha emailed Jason to remind him to complete the company’s required web-based training. Martha copied the email to Teresa and seemingly every member of senior management. Jason’s had enough.
HR Compliance Jungle 