Avoiding layoffs in times of crisis | Tom van der Lubbe, Viisi Insights for Next Gen Entreprise
1.
2. Let’s change Finance.
"It's About Solidarity, Stupid! (Why
Avoiding Layoffs Makes Sense)"
https://corporate-rebels.com/it-is-about-solidarity-stupid/
3. People First in times of crisis:
“Why avoiding Layoffs makes sense”
● Viisi: short introduction
● “The Golden Rule”
● “Worst case scenario” strategy
● Layoffs
○ The American Way
○ The European Way
○ The Collective team approach
● Leadership
Let’s change Finance.
5. No 1. Great Place To Work 2019 and 2020 (small companies)
6. ● Purpose
● People First
● Clients second
● Shareholders last
Viisi’s “People First” model: Hierarchy of Stakeholders
7. Let’s change Finance.
“Golden Rule”
Treat others, like you
want to be treated
The rest is common sense
There are no other rules
8. Putting People First (the sudden
interest in times of crisis):
● Solidarity (Golden Rule)
● Security (Maslow)
● “Psychological Safety” (Edmondson)
t’s change Finance.
9. The concept of the “Worst case
scenario”
● temporary or structural crisis?
● how long will it take?
● how much revenue lost?
Outcome: It only becomes better.
The opposite strategy: Negative
adjustments.
Let’s change Finance.
10. Layoffs
1. The American Way
2. The European Way
3. Collective team Approach
Let’s change Finance.
11. The American Way
● Shareholder driven
● “Hire & Fire”
● Excel
● “Last in, First out” etc.
Let’s change Finance.
12. The European Way
● Multi-stakeholder driven
● Temporary measure
● Role of the State
● One solution for Everybody
● Loss of productivity
Example: Concept of “Kurzarbeit”
Let’s change Finance.
13. Kurzarbeit:
“The COVID-19 pandemic has
generated renewed interest in short-
time work programs - the state-
sponsored work-sharing schemes
aimed at saving jobs. Kurzarbeit,
Germany’s short-time work program, is
widely considered the gold standard of
such programs.”
https://www.imf.org/en/News/Articles/2020/06/11/na061120-kurzarbeit-germanys-
short-time-work-benefit
Let’s change Finance.
14. Collective team approach
● Multistakeholder
● temporary measure
● Role of the State
● Different individual
solutions
● Productivity
Let’s change Finance.
16. “Great leaders are willing to
sacrifice the numbers to save the
people.
Poor leaders sacrifice the people
to save the numbers.”
(Simon Sinek)
THANK YOULet’s change Finance.
17. For those who want more & contact details
“It is about solidarity, stupid: https://corporate-rebels.com/it-is-about-solidarity-stupid/
Employees First, Customer Second, Shareholders Last: Employees First, Customers Second, Shareholders Last
The 2- day business transformation: https://www.firsthuman.com/podcast/106-the-2-day-business-transformation-with-tom-
van-der-lubbe/
On salaries and culture in self managing organisations: http://leadermorphosis.co/ep-28-tom-van-der-lubbe-on-
salaries-and-culture-in-self-managing-organisations
Email: Tom.vanderlubbe@viisi.nl
LinkedIn: https://www.linkedin.com/in/tomvanderlubbe/
19. “best” experience in my life: having
had cancer with 20
● what is my goal in life?
● what are my values?
● what is my role?
● what is my circle of influence?
● what will be left after I am not
there anymore?
What is your goal, what are your values?
21. “Kurzarbeit is a social insurance program whereby employers reduce their
employees’ working hours instead of laying them off. Under Kurzarbeit, the
government normally provides an income “replacement rate” of 60 percent (more for
workers with children).
That is, a worker receives 60 percent of his or her pay for the hours not worked, while
receiving full pay for the hours worked. So, for example, a worker would only
experience a 10 percent salary loss for a 30 percent reduction in hours. The program
usually runs for a maximum of 6 months consecutively.
Kurzarbeit is, in many ways, an excellent crisis management tool. In a deep recession,
it protects workers’ income and therefore supports aggregate demand. Since workers
do not lose their jobs, they have less incentive to save on a precautionary basis. And
companies retain firm-specific human capital, while avoiding the costly process of
separation, re-hiring, and training.
It is also worth mentioning that Kurzarbeit is an addition to private working-hour
flexibility arrangements. Employees in Germany are typically allowed to work
overtime and accumulate credit on their “working time accounts”. These can then be
drawn down during recessions with no effect on paychecks. Firms are allowed to use
Kurzarbeit only when working time accounts are exhausted, which helps contain fiscal
costs.”Let’s change Finance.
Kurzarbeit
22. Let’s change Finance. https://www.imf.org/en/News/Articles/2020/06/11/na061120-kurzarbeit-germanys-short-
time-work-benefit
Effects of Kurzarbeit during the GFC
23. Instead of Laying Off 20
Percent of His Company,
This CEO Made an Unusual
Decision. It's a Lesson in
Emotional Intelligence
Gravity CEO Dan Price was facing a crushing
decision--cut 20 percent of his people or go
bankrupt. Then, he had a brilliant idea: Ask
employees for help.
https://www.inc.com/justin-bariso/instead-of-laying-off-20-of-his-company-this-ceo-
made-an-unusual-decision-its-a-lesson-in-emotional-intelligence.html
Let’s change Finance.