A Carol I. Kallendorf, Ph.D./Jack Speer Publication

Speer: I think we might term that as an understatement. Here in Austin six months ago representatives of HR departments were recruiting their competitors’ employees by showing up in their parking lots at quitting time with their business cards in their hands. There were large bonuses to switch.

BizWatch: So what’s different now?

Speer: The economy in terms of high tech tanked about as quickly as anything I’ve seen. Yet we’ve not seen the numbers in lay-offs that we saw in the late 80s and early 90s. There’s the sense that things are edging back, but the situation is extremely fragile. Some parts of the economy are quite healthy, but they tend to imitate everyone else by cutting their budgets in the fear that the poor economy will spread.

BizWatch: So how is that affecting the employee within the organization?

Speer: Well, management is doing its job and having departments slash their departmental budgets. Sometimes they’re cutting off their nose to spite their face by slashing things they shouldn’t, but in our company we’re probably doing the same thing too.

What happens is that with fewer resources in some companies, people have less to do. That’s a dangerous position for you to be in. When employees lack enough to do it’s obvious what will happen next—their jobs will be seen as the next place to cut.

BizWatch: So what would you advise people to do in a job situation that seems insecure?

Speer: That depends on your personal situation and how you feel about the job. Most people today don’t feel they have to hold onto a job no matter what, as our parents did. I know one person who isn’t having fun in his situation and plans to take a sabbatical for a year and let things get better. But if you have a mortgage depending on your job and children to feed, your strategy is obviously going to be different.

BizWatch: What do you do if you feel you need to keep your career in your present company for now?

Speer: First, you have to manage your mind and emotions. You can’t operate in the fear mode. We’ve seen that people tend to create what they fear most. If you go to work every day fearing that things are about to fall apart, they probably will. You have to not only be positive, but create a positive plan.

BizWatch: How can you have a plan when nothing is within your control?

Speer: You can’t control situations, but you can control yourself and influence others. People smell the victims, and it sounds really cruel, but they go first.

BizWatch: So what might people include in the plan?

Speer: Nobody likes downturns, but they provide excellent opportunities for a personal skills audit. Could it be that you might have become a little relaxed and smug just like many of our organizations have? You have to assess what your value is to the organization and what your value is to yourself.

BizWatch: That sounds tough to do. How would that work?

Speer: You have to ask yourself the tough questions that you can bet somebody else is asking about you right now. For instance, if someone were eliminated from your department or team tomorrow, should that be you—or somebody else?

Are you paid too much? Are you worth more? What do you do for your organization that’s essential, which can only be done by you? Could what you’re doing be done by someone else in another department?

If you’re the caretaker of a department that’s waiting for things to pick up so that you can begin to do what you did, you’re in danger and need a quick plan. This is not just true for middle managers, but right on up to the vice presidential level.

There are lots of opportunities. Look at the areas that are already downsized and you may see a lot of things that are not happening that you could volunteer to do. Try to transfer to an area where people are doing things that are core to the business or ally yourself with them.

BizWatch: So what happens if you do get the axe—get laid off?

Speer: Well, hopefully you’ve been doing what you’re company is doing. You’ve been cutting expenses and not taking on financial obligation. You’ve identified areas where you can put your hands on cash to tide you over. The good news is that it’s only taking about three months to get another job, often with better pay.

Our company believes that nobody is obligated to keep a person in a position that does not add value to the organization. Nobody should stay anywhere where they’re not adding value. American business is shifting resources from less valuable areas to areas of value. It’s a wave that you need to catch.