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Your Connection to the Economic Downturn.

By Berman, Eileen L.
Publication: Industrial Management
Date: Saturday, September 1 2001

The hipbone's connected to the thighbone; the thighbone's connected to the knee bone; the knee bone's connected ... . You get the idea: Everything is interconnected. What happens in one part of the body usually impacts another. And so it is with globalization. What happens in Japan or Malaysia,

Europe, or Africa impacts you and me. And, certainly, what happens with regard to workforce layoffs in the United States and elsewhere affects us all.

It's obvious that someone who has been laid off will have many issues to deal with. But what is the impact of layoffs on those who don't get pink-slipped? Those who have been lucky enough to remain in their jobs can't pretend they are automatically immune to the next round of layoffs. They must not only remain productive in light of demotivating events, they must also take steps to protect themselves as much as possible from the effects of a worsening economic environment.

If you are a layoff survivor, it is necessary to step back, survey the situation personally and professionally, and assess the possibility of being negatively impacted by what is going on around you.

Let's begin with your personal life since everything flows from this. If you are happy and fulfilled personally, you will have the energy required to help yourself professionally. As I suggested in my July/August column, "The Family Can Help After Job Loss," there are certain precautionary measures that you can take in this period of angst. If you were to lose your job tomorrow, would you find your style of living difficult to support for the next year? In order to allay your anxiety, this is the time to take a look at your lifestyle. Perhaps you will see the need for a reduced style of living in order to have peace of mind and less anxiety about the possibility of losing your job. Review your priorities, your budget. Perhaps there are cuts you can make that will allow you to put aside money as a cushion in case you find yourself jobless. This isn't the best time to buy big-ticket or luxury items such as extravagant vacations. It's not the time to incur debt. Does your entire family understand the need for be lt-tightening?

After you get your personal life in order, you can begin to address your productivity at work. The company's productivity will suffer if everyone at work is worried about losing their jobs. In order for a company to be productive in these stressful times, managers have to enter into the same kind of thinking about the company as you entered into about you personal life. Where can you cut costs? Is your revenue forecast too high? What about the expense budget? Involve all departments in rethinking strategy in light of the current downturn. By involving everyone, you reduce stress and increase productivity because people feel they have some degree of control of the situation.

How are customers being handled by the company? Maybe they need more attention than usual due to the unstable economic environment. Don't forget, they're anxious, too. With a reduced workforce, a restructuring of the company may be necessary to ensure that all customers are being served effectively.

How are employees being handled by the company? During a stressful time that is probably rife with gossip, managers should offer moral support and lend an ear to their worries and fears concerning the company's viability and their employment. Be honest with them.

By facing the problems, you will increase your own and your employees' productivity. Many times, people feel it is safer not to talk about things that trouble them. By not facing troubling issues, people think they keep the unthinkable from happening. In this way, they stifle productivity and fail to get their lives in order in the event the "unthinkable" does happen. Only by facing up to the problems, both personally and professionally, can productivity be maintained.

We are all interconnected. And if your fellow worker gets laid off, you may utter a sigh of relief at your own good fortune, but the unfortunate event will have an impact on you in some way So stay cool and make a plan. That's the route to reducing stress and increasing productivity.

Eileen Berman, Ed.D., is the author of two books, Building Productivity: 18 Blueprints for Success (Authority Press, 1999), and Dealing Effectively With Job Loss: A Unique Approach To Rebuilding Your Life (Engineering & Management Press, 1998).

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