Avoiding Layoffs in Project-based Businesses
As the US teeters on the cusp of recession, news is everywhere about decreased employment and increased layoffs.
[pic]In each of the last four months, employment rates have declined. While not the best economic indicator month by month, these rates over half a year are nearly a perfect bellwether of the health of the economy. Whenever employment has declined steadily over six months, a recession has almost always been underway. I, for one, will be watching this metric closely. The next report is due June 6.
And while layoffs don't equal 2001 levels, they are something to watch. From telecom equipment maker Avaya to the city of Atlanta, news of major downsizing is increasing.
It doesn't take an economist to realize that layoffs can have ripple effects in the marketplace and local communities. And it certainly doesn't take a psychologist to imagine how layoffs can damage employee morale and customer perception.
So what's the best way to avoid layoffs?
How about not over-hiring in the first place? The truth is, even though we are in a downturn, many of these layoffs don't need to happen. The best way to avoid deciding how to cut loose one-third of your workforce is to employ a project workforce management philosophy. Instead of hiring carte-blanch during prosperous times, always hire as if you are living in lean times; leverage outsourcing and build teams for a period of time on a project by project basis. That's the heart of the project workforce strategy. The project workforce -- also called the "Hollywood Model" -- was envisioned in the 1990s by author Tom Peters and is quite simply a highly-specialized group of professionals assembled on a need basis and called upon to execute specific projects.
Many types of companies can take advantage of a project workforce. In particular: software companies, IT service providers, professional service firms or any corporations that work on contracts. All it takes is solid...