How do businesses decide who to lay off?

[cantdrv55]

Just wondering how vulnerable my job is. I’m in medical sales for the lab which has very high visibility right now. Med techs have always been the unsung heroes of health care. The lab is almost always relegated to the basement of hospitals even though 70% of all medical diagnosis rely on lab info. Anyway, I sell diagnostic instruments that will soon have serology tests specific for COVID-19. Right now though, that test isn’t available until June.

Since I’m not in R&D, I’m wondering if my job is on the line. Typically sales people, especially productive ones, are considered essential but these are not typical times. I’ve never been nervous about losing my job until now.

[flatbutt]

I've been through down sizing several times. In my experience those who can be outsourced are amongst the first to go along with poor performers. Good luck man.

[wdfifteen]

I don’t have any answers, but there is money in the CARE act to help employers keep employees on the payroll. Basically covering your payroll. If I was still in business and the government would pay my good employees to stick with me, I’d sure keep them on.
Best of luck.

[Sooner or later]

I had to work on a team that decided which salary associates got laid off. About a 100 out of 400. It was no fun. Annual appraisal history was the primary means. Those that were damn good got to stay. Senority took a back seat. We did a lot of horse trading between depts to find a way to keep the high achievers.

[Cajundaddy]

Any time layoffs are needed most companies look hard at low productivity departments and personnel. They will evaluate the numbers, figure out the $$ amount and will often poll managers to see who should stay or go. If you are highly valued, you are probably solid.

[masraum]

Poor performers, outsourced, middle management with high salaries.

That's been my experience.

[Bill Douglas]

Can't, I think you have about the safest job around. Have a vino or two and relax

[stealthn]

I told my employees they are safe, I took a salary cut two years ago when the economy (oil) tanked, we are in IT and right now the demand is high. I’m the lowest paid employee in the company . I’ve positioned the company to be able to survive for a few months should all our clients go under, but hope that doesn’t happen.

The Gov (Canada) says they are going to anti up to businesses, but I’ll wait to see that.

[KFC911]

It varies. I've seen 4K (out of 8K) get axed on the same day. I was always secure...more secure than the management deciding my fate btw .

[onewhippedpuppy]

Originally Posted by Sooner or later

I had to work on a team that decided which salary associates got laid off. About a 100 out of 400. It was no fun. Annual appraisal history was the primary means. Those that were damn good got to stay. Senority took a back seat. We did a lot of horse trading between depts to find a way to keep the high achievers.

I've been through it several times with large-ish companies, this is basically my experience. Determine the employees that have critical roles that would be difficult to replace and the high performers that will carry you through the rough patches. I'm technically a 1099 contractor at an aerospace company that has furloughed 80% of their workforce through April, I'm still working albeit with reduced hours because I have multiple ongoing projects and still support a large amount of sales activity. Typically if you are in or supporting a profit center, those are the last to go.

[GH85Carrera]

I have been the manager at a business that hired and fired people. It is really tough part of any job to tell someone they are fired. Sometimes it is easy, when they become the worthless, always late and first to leave, lazy and obnoxious employee. It is REALLY hard when it is someone that tries hard, does their job properly, and fits into to the work group and makes friends and we know they really need the paycheck.

Now as a business owner, we have no employees. Just a couple of sub contractor businesses we uses for services a few times per year.

[reachme]

The economy changes, the market direction changes and the skills needed change. These moments are usually inflection points of how companies are trying to reorganize anyway. You are not valued based on what you did-you were compensated for that. You are valued based on what it's believed you can do moving forward.

Try to figure out the direction of the company today and be a part of that, besides you can't do anything about your seniority anyway.

[Seahawk]

Interesting question.

My partner and I are doing a number of "what if" drills based on existing contracts and potential awards (government Small Business Innovative Research awards).

We have already requested extensions on the existing contract to keep our core work force in place and not bring on new folks, at least in the short term (two months).

That is really the impact for us, depending on how long this goes on (we have a year left on two contracts): We were in an expansion-ready mode and are now being very careful. Both my partner and I have taken pay cuts and have also been very upfront with our employees on a "rolling hourly cut" per week based on the next few months.

Whee Sequestration hit in 2013 it was a complete bloodbath for small companies. So far, the government is not pulling funds off of award contracts. We'll see.

[asphaltgambler]

Mrs. Gambler is a surgical assistant for the largest oral surgery practice in Northern Va. She has been there 10 years, starting on 11. She receives a fair hourly wage, gets full bonus 3 times a year and on her 10th anniversary there received a nice neckless from Tiffany's. Other small perks are numerous but include free 'work' for immediate family.

So all in, a very successful and growing practice. They have 7 locations.

The previous Tuesday on her way home get's a text; not a actual phone conversation, to not come in next day (Wed) AND it is LWOP!!!!...….end of text. So there was a phone meeting the next afternoon - They immediately furloughed a good bit of the help at least until the end of this month, also fired quite a few. Fortunately she's still there albeit part-time as the firm is basically open only for emergencies.

She's earned that and we're Ok for now but the way they handled it was pretty p*ss poor. She's thinking once the smoke clears possibly reconsidering her employment there...…..

[RANDY P]

I would imagine as a small business owner the idea of having to kill off people you otherwise professed your love for has to be a very, very difficult thing to do and the source of deep embarassment.

We want a mano to mano, but they don't want any part of it, let alone having to tell customers who paid their money and are awaiting service.

Lots of places are going to be dropping like flies especially with extended bans on work.

[Kraftwerk]

At my wife's business, the boss fired the most annoying & underperforming workers...
Her job is safe..with 10% pay cut ,for now.. she is fourth or fifth from the top out of about 25 employees. We'll see how this goes.

[Dantilla]

Sometimes it's shear stupidity.

A relative recently sold over half the commercial buildings he owned.
Two full-time maintenance guys, one who is the real go-getter, self starter, problem solver, yada yada... no matter what, gets the job done.
The other can complete a simple task he is given, but really can't think of solutions on his own. Pretty much have to hold the guys hand.

The company that purchased the buildings was given a thorough run down of every employee.
Which maintenance guy was let go? Yup. The one who got higher pay. Yeah- The bright one.

They will soon come to realize their mistake. Shoulda kept the guy who gets it done.

[-Levi-]

There are two types of employees, those that generate income and those that cost the company money.
companies are always trying to cut cost and / or generate more income.
if you are in sales and you generate income well above your pay, you should be safe, if you are in sales and become a cost, expect to be gone.

good luck man, I'm in tech sales myself, so far we are hanging in there.

[KFC911]

Originally Posted by -Levi-

There are two types of employees, those that generate income and those that cost the company money.
companies are always trying to cut cost and / or generate more income.
.....

LOL...I have never generated a single $...mebbe THAT'S why I don't have a job now

[Ayles]

Try working in the video game industry... Doesn't matter who you are, you are going to get whacked eventually.