Health Information Technology

The case study The Layoffs written by Bronwyn Fryer is a very interesting read as it touches the topic that many of us have felt in the last several years. As the economy shrank over the last decade so did the companies, and many employees found themselves looking for another job. Many of us asked why me and why now? In this article the CEO wants to cut 10%of its workforce to be able to meet company’s estimates. The CEO plans to cut middle management and not “value zone” employees as they are responsible for customer satisfaction. He meets with an executive management team. This article argues different options available for Astrigo Holdings and offers commentaries by experts on this subject. Different options are being discussed in the meeting. The First in, First out option would impact employees that have been with the company the longest period of time. The reason for this is that most of these employees are well off, as they have been with the company for a long time and have accumulated wealth. Also these employees are older, more relaxed and do not offer innovative strategy. Cutting them will also save the company a lot of money as they probably make more money than newer employees. However, these employees would be entitled to a higher severance package. Also, since this cut would involve older employees it would expose the company to lawsuits. The other option was to cut employees based on their last performance review. Doing this would eliminate those that are not performing. Also this option would avoid lawsuits. Another option was Last in, First out. In this scenario only newer employees would be cut. This option would be the cheapest as the company would not have to pay large severance packages. Also it would seem fair to all the employees. Another option was to cut a whole department or unit. The advantage of this option would be that new quality recruits would still be with the company. Additionally cutting the pay by 5% for all would allow for no layoffs.

Experiencing a layoff can be a gruesome experience that is very demotivating and hurtful. No matter how layoffs are done people will be unhappy and it will demotivate those that are staying. In order to do the right thing one must take into consideration all of the above scenarios. Eliminating departments and cutting employees are the quick and easy way to change things around but can be costly. The company that performs layoffs frequently has to analyze its operating. As one that experienced a Last In, First out layoff I did not feel discriminated, my confidence was not shaken and I was able to find a job quickly. Also, employees that stayed felt valued and respected. This is a good way, however the company may have allowed numerous new talented and innovative employees to leave. Also, these new employees bring value to the employer. Performance based layoffs are not very accurate. We learned from many readings that performance reviews are demotivating false reports of performance. They just serve as confirming who the boss is. Taking all this information into consideration the company that is questioning layoffs should first analyze its strategy, goals and priorities. Cutting expenses, reducing turnover and improving productivity of existing workforce can save companies millions. Analyzing performance and productivity, innovation and the value employees bring to the company should be the first steps taken before the layoff. When analyzing layoffs one must look at all the above scenarios and possible use every one of them. Cutting departments or integrating existing ones, cutting expenses, changing  the workforce from the experienced to more innovative over time, as well as cutting pay while offering more free time and increasing goals, could all be used to position the company where it should reach the goal and estimates. No matter what is done, it will be very hard on the employees. Any company has to protect themselves from layoffs by careful planning and placing more value on the employees.