Not a good time for a hiring freeze
Companies that lay off rank and file employees are missing an opportunity for success. Commentator Amelia Tyagi suggests simultaneously replacing some executives to generate innovation and change.
Commentator Amelia Tyagi (Marketplace)
More on The Economy, Jobs
TEXT OF COMMENTARY
Bob Moon: Chrysler isn't saying how many white-collar workers have accepted the company's buyout and early retirement offers. The deadline for their final decision is this weekend. But already, the automaker is saying it may still have to make more involuntary layoffs. The company's aiming to eliminate a quarter of its salaried and contract work forces. We've been hearing the layoff headlines every day. It's become a common tactic these days to improve the bottom line and help companies survive tough economic times. The strain that's putting on American workers is getting a lot of attention. But Commentator Amelia Tyagi asks a contrarian question -- are troubled corporations going far enough?
Amelia Tyagi: What most people don't realize, is that with every mass layoff comes a quiet memo from the top: "Hiring freeze, effective immediately." No new employees, no new consultants, no new bodies walking in the door. Period.
But this is precisely the wrong moment for hiring freezes. With a stroke of the pen, managers at struggling companies have effectively cut themselves off from fresh perspectives and new ideas, just when they need them most.
No, I haven't lost my mind, and I'm not a sadist bent on destroying lives. I'm not talking about simply replacing one warm body with another to do the same old job in the same old way -- that would be foolish. Nor am I suggesting that the rank and file should be replaced. Rather, this is a moment when companies should rethink and restructure critical executive jobs, explicitly giving top priority to innovation and change.
Try some trade-ins at the top. If a company lays off 30 percent of the workforce, then at least 30 percent of the executives should be replaced with new managers. After all, does anyone believe that the same people who ran the company into trouble are exactly the right people to turn things around?
Companies should also scrap the part of the memo that forbids any contractors. A downturn is the perfect moment to bring in a few contractors in key positions. You can bring them in for fresh ideas, and then send them on when the work is done.
Let's face it. In this tough economy, there are some really talented people who are looking for work, and who would love to help a struggling company turn itself around. There are also some managers who have been in the same job at the same company for way too long, and the bottom line shows it.
So scrap the hiring freeze, and make room for real change.
Comments
Comment | Refresh
From Davis, CA, 11/29/2008
I am not sure I agree that companies should be churning their management today if their business is not doing well. Which management team would not be in that situation today? This is a recipe for indiscriminate action.
At the end of the radio story I thought I heard that Amelia Tyagi did executive searches (the info on her background is not listed above). If I heard correctly, her comments could be interpreted a bit like promoting her own business.
From Temecula, CA, 11/28/2008
I have usually seen new managers come in some time BEFORE the rest of the lay-offs occur, rarely AFTER. These new managers always claim to be fresh but seem to lack substance behind their words and end up supporting a good old boys system (even if they hire a few girls) putting in their own choices of cronies. Little real change occurs because it is still the same system of power and a mix of good and bad choices is the typical result washing out any real change. Change always sounds great but execution is often poor. In some company's it is too frequent and support structure is lost with anarchy being the result. None of these changes help the bottom line at all.
From San Antonio, TX, 11/28/2008
Great Story and different point of view, to many times Executives and upper management personnel are replaced with the same group that just ran one company to the ground.
A perfect example of what's affecting our current Mortgage and Financial Markets.
Post a Comment: Please be civil, brief and relevant.
Email addresses are never displayed, but they are required to confirm your comments. All comments are moderated. Marketplace reserves the right to edit any comments on this site and to read them on the air if they are extra-interesting. Please read the Comment Guidelines before posting.
You must be 13 or over to submit information to American Public Media. The information entered into this form will not be used to send unsolicited email and will not be sold to a third party. For more information see Terms and Conditions and Privacy Policy.