Posts Tagged ‘Leadership’

 

Over the past several years, the news has been filled with huge layoffs by companies trying to cut costs. Is this a strategy that really helps a company? Every day, in the course of networking, I have the opportunity to talk with, not only people who are in transition because of cost cutting efforts, but also I have opportunity to talk with people “left behind” after the cost cutting. The story is so often the same. Significant resources of knowledge and skills have left the company, leaving those left behind swimming against a rip current. The more they struggle to make up for lost resources, the further fall behind on objectives. They are asked to do more and more, all with decreasing efficiencies and effectiveness. Managers are looking to leave the company because they no longer have the assets in place to meet the demands for the company to succeed.

In a corporate environment, every person in the company, through the tasks and projects they work on, needs to contribute in a way that they are helping the company do one of three things:

  1. Help the company generate revenue
  2. Help the company reduce costs
  3. Help the company mitigate risks

If an employee is not doing this to a degree greater than their annual cost, it really doesn’t make sense for the company to be paying them. The company should not wait for a crisis to let go of underperforming employees. Typically, companies expect to cost savings or revenue generation 3 to 5 times the cost of the employee. If the employee is achieving this success, it NEVER makes sense to cut the employee to save costs.

Does your company understand the true value brought by your employees? Is your company costing itself more by trying to reduce employee costs?

Throughout my career, I have run into basically two types of professionals. Those who define their career and those who let their career define them. In this economic time, this distinction has become increasingly apparent. Another way to look at it is do you do what you do because you love it, or because you need the money? I run into individuals who thrive on what they do, why they do what they do, and how well they do it. I also run into individuals that are trapped by their titles they have had or processes and tasks they have performed limiting what they think they can do now. The latter group, when introducing themselves at networking events or in interview situations focus on tasks or processes they have done without any clear understanding of how this impacts the organizations they have worked for. The former group, in the same situations, talk with passion about themselves and their profession. They hold your attention, and you see how they can positively impact an organization. No hiring manager wants to hire someone who will feel the job is a means only to a paycheck. They want to hire someone who is passionate about the product or service of the organization, and is passionate about contributing to the success of the organization. Some job seekers would say, given the current economic situation, they cannot afford the luxury to do what they want. They just need a job. I would venture to say, unless you can differentiate yourself with your passions and your success, will have difficulty getting any job just because you need the money. As you are mapping out the rest of your career, whether you are in the beginning of it, the middle or winding down, assess your skills and passions, and develop a strategy so that you will be working because you love what you do, not because of the money you need to earn.