Cost savings

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Why Companies Fire People To Save Money

Why Companies Fire People To Save Money

There are a lot of companies that will choose to fire employees instead of laying them off. Let's walk through the instances when this happens so you can better prepare yourself.

Placing The Blame On You


Lots of companies right now are deciding to make significant cuts. They aren't making their numbers. They're not feeling financially secure. Whatever the reason may be, the biggest expense is people, so the fastest way to save money is to cut staff.

Now, most companies will be transparent about this and admit that it's a layoff. They didn't perform well. They need to make changes. They're laying you off through no fault of your own. It stinks, but nobody's blaming you. However, there are companies out there that will say that it's a firing instead.

When companies fire employees instead of laying them off, they're saying it's not their fault. It's not their fault you're suddenly underperforming and, therefore, they're going to fire you. How ironic is it that you were getting great performance reviews, everything was going fine, and then all of a sudden you're having a performance issue?

What normally happens is the company has figured out that they can get somebody to do your job for a lot cheaper. There are a whole bunch of people in the job market who will do your job at a lower pay. But if the company lays you off in order to save money, there are laws around discrimination that you could cite and then file a charge of discrimination against them.

Some companies want to avoid any risk of this, so instead they suddenly decide you're not performing and they document that and gather the paperwork to be able to prove that you're not performing (you're the problem) so they can fire you. This is how they avoid lawsuits. And when they fire you, they can replace you and hire somebody for less money.

You can never take your eye off the ball as long as you are working. If you're making a wage that you want to keep making, you need to watch your market conditions because if you're not growing, you're dying in your career.

Way too many people get into kind of an autopilot situation where they're not really growing and evolving with the market. And it's not just about amassing more skills. It's about strategically understanding the direction your career needs to go in so you stay relevant and in demand. You can have all the skills and experience in the world, but if you don't know how to package that up and market it correctly to employers, you're not going to differentiate yourself in the market and stay competitive.

Please be on the lookout for this situation in your career. The moment your company realizes they can have someone do your job for less money, you're going to become a performance issue. It's easier to fire you than it is to lay you off. Remember that, and make sure you know your unique value add (UVA).

Good luck, and go get 'em!

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Why Companies Fire People To Save Money

Optimizing Remote Workshops For Enhanced Collaboration



In the wake of the pandemic, businesses worldwide rapidly adopted tools such as video conferencing technology to facilitate remote collaboration within distributed teams. Despite the move towards this technology, large workshops that were traditionally dependent on physical spaces have continued to remain in-person events for many organizations.

And I get it—meeting in person can help foster camaraderie and sidebar conversations. Employees can tune out from the constant Slack and email notifications, focusing on the task at hand. But in my experience, in-person working sessions also bring on massive inefficiencies. Many colleagues are forced to dust off their suits and travel from various locations, disrupting their routines and sleeping habits. Despite efforts to gather everyone in person, inevitably there are individuals who either live in distant markets or couldn't attend in person and must virtually dial in, leading to a fragmented experience. Whiteboarding is done on large Post-it notes, requiring someone to take pictures and manually transcribe information for digital sharing. Employees end up spending long days in conference rooms, feeling drained, and often feel obliged to attend happy hours.

Companies aiming to sustain or even improve creativity, culture, and engagement need to invest in alternatives that meet the flexibility of the current business environment.

According to a Gallup poll, 51% of employees report disengagement from their work. The difficulty lies in maintaining a robust company culture when most interactions occur through screens (source).

Benefits Of Virtual Workshops


Woman works from home during the summer

While many argue that in-person workshops are more personal and interactive than remote meetings, new and innovative technologies are bringing benefits to distributed brainstorming:

  • Productivity: Parallel team ideation leads to significant time savings, shorter time to produce artifacts with templatized digital materials, and accelerated decision-making with digital features such as voting and timers.
  • Cost Savings: Digital meet-ups are far more cost-effective than teams traveling to a centralized location, workspaces are quicker to set up, and they require less logistical coordination than in-person sessions.
  • Greater Inclusivity: Virtual sessions guard against groupthink, creating an equitable environment where no single individual or group dominates ideas.
  • Streamline Documentation & Scale: Teams can easily share workshop documents, create standardized company-wide templates, and integrate with existing external digital tools/workflows. Digital whiteboards maintain “the whole story” of the session as well as reduce the need for duplicative notes.

Use Cases


Woman attends a remote workshop

As a management consultant, I often act as the facilitator, incorporating virtual workshops in various scenarios across clients. Here are some ways I have leveraged remote workshops to enhance collaboration:

  • Process Mapping: Partnered with teams to develop a new marketing process by grouping various stakeholder groups and mapping the current state customer journey from start to finish. Understanding the customer journey helped the team come up with innovative ideas for the future state.
  • Gap Assessment: Created a structured, collaborative discovery framework to help a company determine gaps across people, processes, and technology in their current operations. Recommendations to remediate current challenges were voted on and prioritized, which created the design of future projects.
  • OKR Coaching: Utilized a virtual whiteboard to organize ideas for OKR development. The team identified strategic themes and prioritized the most critical areas of focus. We created an actionable plan with defined objectives and key results.
  • Retrospectives: Leveraged the agile retrospective framework “Rose, Bud, Thorn” to recap and reflect on a program that required cross-functional collaboration between teams. Walking away, the teams felt they had fostered a culture of continuous improvement and ultimately improved morale.

Additional popular use cases include prototyping, “Design Think,” team stand-ups, strategic planning, project charters, and more.

Best Practices


Man on laptop attends a remote workshop

To ensure successful virtual brainstorming sessions, consider the following best practices:

  • Choose the Right Tool: Select a collaboration tool that is quick to learn, requires minimal setup, and aligns with any company security requirements (i.e., industry regulations, privacy, GDPR, etc). My favorite tool is Mural, given its optimized user interface, flexible permissioning, and timer features.
  • Define the Scope: Clearly define objectives, problem statements, and establish guidelines for communicating through the session.
  • Design: There is no need to recreate the wheel; take advantage of templatized frameworks. Think about how you want to organize and prioritize ideas as a group.
  • Choose a Facilitator: Designate a facilitator to ensure a productive and respectful environment.

In conclusion, embracing virtual workshop tools can transform remote working challenges into opportunities for enhanced collaboration, creativity, and engagement within distributed teams.

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Optimizing Remote Workshops For Enhanced Collaboration

Executive Spotlight: The Importance Of Sustainable Business Practices



Sustainability is important in every aspect of life, including business. It's no secret that sustainable business practices can increase efficiency, drive long-term success, and create a better future for all. How are you incorporating sustainability into your organization's strategy, operations, and culture? How can you align environmental and social responsibility with business goals while making a positive impact on the planet and society?

We recently asked our leading executives for their advice on how to incorporate sustainability into an organization's business practices.

Here are their responses...

Michael Willis, Sports Business Operations Executive


Sustainability is more than a buzzword; it’s a business imperative. The world faces environmental and social crises, and consumers demand that companies take responsibility and action. For companies to stay competitive and relevant, they must commit to sustainability.

For example, the office manager at the NFL came down to my floor to discuss plastics with the department. We all were given an additional trash receptacle. One was for trash, and the other was for recycled plastics. City officials are working around New York City businesses to explain new initiatives the city is taking concerning recycling for the environment.

For every plastic water bottle found in the regular trash, there was a $100 fine to the NFL.

As a powerful platform for change, sports have an opportunity to be at the forefront of the global movement toward a more sustainable future.

League-Wide Fundraisers – sports leagues, teams, and athletes are developing creative ways to meet sustainability goals, such as One Tree Planted.

One Tree Planted is an environmental organization that partners with several sports organizations to support sustainability in sports. For example:

  • Major League Soccer – 2022 MLS planted 28,000 trees in the US and Canada—one thousand trees for each of Major League Soccer’s 28 teams.
  • Major League Baseball – 2022 MLB planted 5,000 trees in California—for the post-restoration project for the home runs hit in the 2022 MLB Home Run Derby.

Consumers and company stakeholders value sustainability and expect businesses to care too. As consumers become increasingly aware of the impact of their everyday choices, they are looking for brands and products that do good for people and the planet.

More than 90% of global consumers surveyed say they want companies to address social and environmental issues.

Many NFL stadiums maintain that all food served to fans during the game comes in compostable containers.

The sports industry has a long way to go in sustainability, but the processes are in place to make this initiative a mainstay in current and future operations.

Michael Willis has 18+ years of experience working with accounting & sports organizations and has managed P&Ls of $10M - $125M+ with budgets of $3M-$50M+. He worked for the NFL for 22 1/2 years, mainly with the game officials working on the financial/accounting side of the business.

Lisa Perry, Global Marketing Executive


Employee works at a company with sustainable business practices

In today's rapidly changing world, sustainability has become a key focus for businesses across industries. Gone are the days when profit was the sole metric of success. Consumers, employees, and stakeholders demand more from companies, urging them to embrace sustainable business practices. Here are some ways to incorporate sustainability into your business strategies and examples of companies leading the way.

Environmental Stewardship:

Consumers are drawn to companies that actively reduce their carbon footprint, conserve energy, and minimize waste. Companies like Patagonia have long been at the forefront of environmental stewardship. Patagonia uses recycled and organic materials in its products and actively advocates for environmental causes. It launched the "Worn Wear" program, encouraging customers to repair and reuse their clothing, reducing waste, and promoting a culture of sustainability. Patagonia's founder recently donated the company worth $3 billion to fight climate change.

Meeting Consumer Expectations:

Today's consumers are more informed and socially conscious than ever before. They seek brands that align with their values and support the causes they care about. Sustainable practices have become a key consideration for consumers when making purchasing decisions. Unilever has made sustainable practices a cornerstone of its business strategy. The company's Sustainable Living Plan focuses on reducing its environmental impact, enhancing social equity, and improving health and well-being. Unilever's commitment to sustainability resonates with consumers, boosting its brands like Dove and Ben & Jerry's, known for their ethical and socially responsible initiatives. By integrating sustainability into their business operations, companies can attract and retain customers who prioritize ethical consumption.

Enhancing Brand Reputation:

Sustainability is no longer an optional add-on for businesses; it has become a critical component of brand reputation management. Telsa has revolutionized the automotive industry with its commitment to sustainability. By developing innovative electric vehicles that reduce greenhouse gas emissions, Tesla has built a strong brand reputation as a pioneer in clean transportation. The company's dedication to sustainability has attracted a loyal customer base and positioned it as a leader in transitioning to a low-carbon future. In a competitive market, a strong brand reputation can be a significant differentiator and a catalyst for growth.

Cost Savings and Efficiency:

Contrary to popular belief, sustainable practices can lead to cost savings and increased operational efficiency. Companies can cut expenses, improve their bottom line, adopt energy-efficient technologies, optimize supply chains, and reduce waste. IKEA, the global furniture retailer, has integrated sustainability into its operations to achieve cost savings and efficiency. The company has invested in renewable energy sources, such as solar and wind power, to reduce its carbon footprint. Additionally, IKEA focuses on designing products that are durable, recyclable, and made from sustainable materials. These practices align with the company's values and drive operational efficiency and cost savings. Embracing sustainability benefits the planet and drives business success in the long run.

Regulatory Compliance and Risk Mitigation:

Adopting a proactive approach to sustainability minimizes business risks and creates a resilient foundation for future growth. Walmart has made significant strides in integrating sustainability into its business practices to ensure regulatory compliance and mitigate risks. The company has implemented various sustainability initiatives, such as reducing greenhouse gas emissions, improving energy efficiency, and promoting responsible sourcing. Walmart aims to operate with 100% renewable energy and actively engages with suppliers to improve sustainability throughout its supply chain. By prioritizing sustainability, Walmart meets regulatory requirements and reduces potential risks associated with environmental and social issues, enhancing its long-term resilience and reputation. Walmart's commitment to sustainability has influenced the entire retail industry, encouraging other companies to follow suit and embrace sustainable practices to meet regulatory standards and mitigate associated risks.

Sustainable business practices are no longer a mere option; they have become imperatives for companies aiming to thrive in today’s world.

Lisa Perry helps companies build leadership brands, driving loyal customers & delivering profitability. She does this through a process that builds brands consumers love. Her goal is to help companies develop, monetize, and grow their brands.

How is your organization incorporating sustainability into its business practices? Join the conversation inside Work It Daily's Executive Program.

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Executive Spotlight: The Importance Of Sustainable Business …

Executives Care About 2 Things: Money & Money!



(NOTE: This message is laced with sarcasm to prove a point. Reader beware and enter at your own risk.)

One of my mentors taught me a very valuable lesson the hard way. He told me I had great ideas, and my sales approach was crap. He even sent me to “Sales Training” to get better at making my point.

I admit I was terrible. I have gotten better over the years and by making mistakes. One good idea after another thrown in the circular file until I learned an invaluable lesson from my mentor.

Executives only care about two things…

#1 – MONEY

And

#2 – MONEY!!!!

Money #1 – How Much Will This Cost Me?


Cost concept

One of the first questions after someone poses an idea to an executive is: "What will this cost?"

Money #1 is about how much outlay of cash, time, or effort this idea will cost me. Is this idea an investment of hundreds of thousands of dollars? Capital? Expense? How long will it take? Who needs to be involved?

Everything in business comes with a cost. If the executive decides to put effort into something, she needs to know what it will cost her. Do I need to change the schedule on another project making it late? Is she hiring someone to complete this project? Does she need to pay overtime? Invest cash? Take out a loan? Everything comes with a price tag.

When presenting your ideas to an executive, make sure you have these details ready at a macro level. Too much detail, you lose their interest. Not enough facts and you will be sent back to the drawing board. What is the right level of detail?

Each executive will have different motivations. See if you can identify them before the conversation and leverage their preferences. Going to a CFO with highly complicated technology will confuse him. Seeking financial support from the Director of Engineering without discussing the details? Good luck. Determine their preference and use it!

Money #2 – What Is The Revenue Or Cost Savings That Comes With This?


Executive/businessman saves money

The second question: "How much can we make off this idea" The corollary question: "What are the savings?"

Money #2 is more about what is in it for me. How much will we profit from this exercise? Will it increase revenue? Can it save me money elsewhere in the business? What do I get from my investment?

If an idea is simply for an idea's sake, you better have a flawless argument to get approval. Asking for money (#1) without stating what is in it for me (#2) is suicide. If you approached your mother for $100, would you simply get it? Sure, she’s Mom, and she loves you. Dad on the other hand wants a mowed lawn, clean garage, or something in return. (NOTE: This is a stereotype. See warning above.)

Executives need to know their investment will pay off. Some want immediate results, and others may be playing the long game of two to three years out. Either way, for their $100 today, they want something in return in the near future.

How can you save the business? Will the idea drive more revenue and improve cash flow? Is your production line 30% more efficient saving time and labor hours? Can we make and sell more widgets this month?

Approach your executive with some idea of what is in it for them. Show the way your idea can help meet (or exceed) their goals. If you ask for $100K, demonstrate the return of $200K, $300K, $500K, or more for the investment in your project.

Subjects like safety, risk mitigation, and even simply making a product right for the customer may not have hard dollars in return. Focus on cost avoidance when you cannot provide hard cash. Avoiding litigation and the lawyer fees associated to defend your product liability can be worth millions. Saving a person’s life is immeasurable. These costs are indirect, and they are potentially real.

In order to get Money #1 to begin your project, you must show how Money #2 pays itself back. Without it, your idea is nothing more than a dream.

Wrap It Up… This Is Costing Me!


Two businesspeople shake hands after a meeting

I learned this lesson early in my career. As stated, my mentor saw potential in my new ideas. He knew I put a lot of effort into the concept and how it could help the business. I had opportunities to drive real change.

My presentation sucked. I spoke of the technical merits. I showed efficiency gains. I described in detail the plan of implementation. I knew generally what the “cash” costs were in the conversation. I could give him more detail than he needed.

In the end, he asked me what it would cost. I had the cash value of the idea, and I neglected the time and human capital. His second question: "How does this affect the bottom line (the return)?" I did not always have this level of detail.

Business is supposed to be simple. I sell something for a price (Money #2) while making it for a cost (Money #1). When #2 is greater than #1, business is good. If #2 does not exist and you continue to spend #1, your business will not last.

Approaching an executive with these two concepts well prepared will serve you well. In everyday negotiations with my team, I often ask, "How much effort will this take?" and "Why should we do this?" In a way, my mentor is perched on each of my shoulders (like the angel and devil) reminding me of two things…

MONEY and MONEY.

Go forth and sell your ideas better than I have in my past. Use the Money #1 and Money #2 tricks to your advantage. Get your paradigm-changing concepts implemented and improve your world!


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Executives Care About 2 Things: Money & …