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!
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Nicole, the HR Manager, spent last year’s holiday season trying to boost the morale of her co-workers. Unfortunately, the office parties flopped and morale is still lower than a snake’s belly. The festive season faded into the cold drudgery of first quarter and everyone is mad.
Keith tells Nicole that her co-workers are aware of how hard she’s worked for them. They want to thank her for her efforts on their behalf. Later that day a dozen yellow roses are delivered to her office, a gift from her co-workers.
Nicole, the HR manager, had a scary Halloween with underclad co-workers and a wild Veteran’s Day that ended with claims of discrimination. She is finding it increasingly difficult to boost morale among her fellow employees. She’s trying to boost morale because her co-workers are disenchanted after years of no pay raises and limited opportunities for promotions.
extra from the Godfather movies with chunky gold rings on both hands and a large gold watch. His shirt is open half-way down his chest displaying gold chain necklaces. In a voice roughened by cigarettes and cheap whiskey, the man explains that he’s looking for an HR manager to keep the “government off his back”.
Betty started a new job about six months ago but already the old patterns are starting to repeat. Betty’s last job became so unbearable that she quit. Now she seems to be headed down the same path again.
and found her current job.
Doug is getting close to retirement age after a long, not very distinguished, career. He’s still the consummate professional but it’s obvious that all is not well with him. He is out sick at least one day a week and he doesn’t do much work on the days he is in the office.
talking to Doug about a client problem. When Doug said the problem sounded familiar, his junior replied, “It ought to; it’s your client”.
Jane is the HR manager for a company with about 200 employees. The company runs a lean operation which means that Jane is the sole HR person and handles pretty much every situation that arises. Jane likes the variety of issues that she faces because it keeps everything fresh and interesting.
This week, Jane began meeting individually with each employee who is chronically late. Jane tries not to yawn as she hears the usual excuses. One employee says she was stuck in traffic due to an accident. Another says his dog got out of the fenced-in backyard and he had to find the mutt and lock him in the garage before leaving for work.
Wanda owns a small company and she’s preparing for her next round of job interviews. She hates the interviewing and hiring process. It takes a lot of time away from running her business and the results can be iffy.
with her dinner.
Sam leads the IT department for his company and is the head of their internal security team. As part of his duties, Sam has administrative rights to all electronic and computer-based systems at the company. He ensures that new employees are issued security clearances to use the company computers. He sets the dollar limits on company-provided credit cards as authorized by the owners of the company.
HR Compliance Jungle 