Jason Zickerman, President of TAB, comments on employee retention.

Are You Working Today?

Posted by: Jena McGregor on December 23

Many people aren’t. And not just because it’s the day before Christmas Eve. A growing number of companies have planned holiday shutdowns—some paid, others not—for the two weeks around the holiday. According to human resources consultancy Watson Wyatt, the percentage of companies implementing holiday shutdowns grew from just 6% in October to 13% in December as the economy worsened. Another 5% are planning one in the next 12 months, up from 2% in October.

The range of companies implementing holiday shutdowns is wide. United Technologies aerospace unit Pratt & Whitney is forcing 1000 of its Connecticut hourly paid employees to take an unpaid day on Christmas Eve. Dell is having workers take up to five additional days of unpaid leave to save costs. And Chrysler is implementing the mother of all holiday shutdowns, extending its scheduled two week plant closures to a month.

I spoke with human resources and employment law experts about the topic recently. Jason Zickerman, president of the small and medium-sized business network The Alternative Board, says many companies find that employees respond well to such shutdowns if they’re communicated well and done in an attempt to try and avert layoffs. Because some shutdowns allow employees to use vacation time, or merely extend paid vacation time (but still mean savings for the company on, for instance, building energy use) some employees see them as a perk. “It shows the staff that you’re really fighting for them,” Zickerman says. Another innovative trend he’s seen some employers do in an attempt to avoid layoffs is to lend employees to other firms. While most companies are cutting people, there are still “some companies who need seasonal help, and you may be able to fit your employee into another organization.”

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Some companies are promising not to lay off any workers, even during times of financial hardship.

By Jessica Dickler, CNNMoney.com staff writer

Last Updated: December 11, 2008: 11:37 AM ET

Cutting costs without cutting staff

Many companies are struggling, but layoffs aren’t the only option for cost cutting. And many workers are willing to make sacrifices to improve the company’s bottom line if it means keeping their jobs.

In a recent interview with Tom Brokaw, President-elect Barack Obama urged business owners to “figure out ways in which workers maybe have to take a haircut, but they can still keep their jobs, they can still keep their health care and they can still stay in their homes.”

Some companies like Toyota keep workers busy during downturns with training sessions or classes. Hypertherm reallocates employees to departments where there is a greater demand for labor. Others choose alternative cost-cutting methods like hiring freezes or shorter work weeks.

Dean Gruner, CEO of ThedaCare, a Wisconsin-based health care system provider, instituted a no-layoff policy 18 years ago. To slash expenses in lean years, the company slows the hiring process and redeploys workers to other areas. “We can manage our staffing levels by being thoughtful about our turnover rate and redesigning the work that we do,” Gruner said.

Jason Zickerman, president and CEO of The Alternative Board, a business coaching group, advocates this approach for all types of companies, even in times of financial hardship. Zickerman suggests offering employees shorter work weeks at reduced pay, encouraging employees to take sabbaticals or extend year-end breaks to avoid cutbacks.

If 20 workers took two weeks unpaid at the end of the year, “you’re talking almost a full-time salary,” he said.

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TAB owners continue to outperform non-TAB owners by wide margins.  The promising results of the TAB Small Business Index survey have been featured nationwide, including the following publications:

• The Wall Street Journal- Survey Reveals a Segment of American Businesses Enjoying Optimism & Planning for Growth
• The Chronicle Herald- Crisis has People Talking
• The Washington Business Journal- Right in Your Own Backyard 2

The small business index press release has been posted to over 116 Web sites, including local business journals in almost every metro area.  

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The Alternative Board is pleased to announce that 9 Elements of Family Business Success, written by TAB Founder and CEO Allen E. Fishman, has made this week’s top 10 business books on The Wall Street Journal’s best-seller list.   Using dozens of stories and the experience of working with thousands of private business owners, 9 Elements offers a prescription for maximizing the benefits of working in a in a small business with family members while effectively navigating the tricky obstacles that present themselves.

Mr. Fishman’s previous best seller, 7 Secrets of Great Entrepreneurial Masters, has become a huge success and is used by forward thinking business owners seeking to create wealth, grow sales, reduce stress and enjoy life.

Both books are available on Amazon.com or through your local TAB office.

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TAB president, Jason Zickerman, discusses some ideas for weathering the economic crisis.

The Alternative Board on Fox Business News

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