Here's a tough one a lot of companies are thinking about. In tough times for a company, does it make more sense to do layoffs (impacting a few folks dramatically) or force unpaid leave across the ranks to relieve some economic pressure for the company and hope things turn around?
That question came up in my mind as I read this post by John Hollon at Workforce, who notes the voluntary offer of a week's unpaid leave to all Dell employees as reported by the Dallas Morning News. Hollon also notes the fact that Dell is giving employees a nudge to be a good company citizen and take the unpaid leave, adding "“although the leave program is voluntary,” the newspaper reported, “the company may resort to layoffs if it cannot save as much as hoped through this round of cutbacks.”
Ugh. Make that double-ugh.
So, which way do you go? I'll give you another choice - you need 2% of payroll (about a week's worth) as part of an economic survival plan your company has put together. Do you:
1. Do a layoff equal to that amount,
2. Offer voluntary unpaid leave and hope enough employees will take you up on it (knowing that layoffs to make up the difference are in your back pocket), or
3. Force voluntary leave on everyone (1 week), causing increased employee relations issue, but making your number until the next drive/need comes along....
You're getting a Dell week's worth of unpaid vacation, dude....
Real SVP of HR stuff during bad times. Discuss....
