Uploaded: Wednesday, October 20, 2010

By Chris Atchison

Think layoffs will fix what ails your firm? They might be the cause of bigger problems.

Just after Barack Obama took presidential office in January, he reminded his nation that a long period of economic pain lies ahead, not only for the U.S. but for the entire world-which makes the stories of U.S. entrepreneurs such as Jonathan Davis worth a listen.

After sales of Davis' Austin, Tex.-based employment consultancy dropped by 60% in October and by another 50% in November, he laid off 12 of the 26 staff of American Workforce. But rather than inform his remaining employees with individual phone calls or a conference call (all of his staff are home- based), Davis spread the news via broadcast e-mail. Not only did the layoff survivors spend the next week pondering their own futures, they simmered over what they saw as management insensitivity to their feelings and needs.

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Uploaded: Wednesday, October 20, 2010

By Laura Bogomolny

Time to part company? A guide to easing the pain while protecting yourself.

When John Smith was promoted to regional sales manager at a multi-national consumer packaged-goods company last fall, he knew his new job wasn't going to be easy. The division he was put in charge of was struggling, and hadn't met its revenue targets for the past three quarters. So Smith (not his real name) poured hours of effort into boosting morale and brushing up his sales team's skills, helping colleagues through tough negotiations. His dedication paid off: thanks to Smith's efforts, his division came in on budget for the quarter. Nonetheless, a mere three months into his new gig, orders from above forced him to lay off the majority of his staff. "I had them working 18 hour days," Smith recalls. "They were working really hard. And they were doing well. We made our numbers." But broader corporate considerations meant management decided to restructure, and Smith was left with the unenviable task of giving his team the boot. "Managing people is the hardest thing I've ever done," he says. "Firing them is the second hardest."

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Uploaded: Wednesday, October 20, 2010

In Boost Your Hiring IQ, Carole Martin lists the most common mistakes interviewers make.

Your employee selection process is crucial to your company's future, but a lot of people get it wrong. In Boost Your Hiring IQ, Carol Martin lists the most common mistakes interviewers make.

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