That is what President Obama said on Thursday. Talk radio was all over that comment today. I am going to give the new prez the benefit of the doubt, this time. I'm certain that he mis-spoke and meant to say bonuses. Of course any time is the time for companies to have profits. Corporate profits are a good sign that the company is turning around. Profitable businesses hire people. Profit means new jobs. One of my professors in college described corporate taxes as involuntary profit sharing. If corporations do not have profits, then the government gets less tax money from them and investors will take their money elsewhere. We want profitable businesses. Profit means federal surpluses and not federal deficits.
Some of the bonuses paid to employees and executives, on the other hand, need to be looked at. When the company is not profitable, when the stock price is flondering, when you are handing out pink slips without cause and when you are driving to Wahsington to ask Uncle Sam for a hand out you should not be giving out bonuses. It is unethical and sends the wrong message to employees, customers and investors about what is and who are the prioritites of your company. Would you want to work for, invest in or partner with a company that does this?
One of the problems we have with business today is that so many corporate leaders have forgotten about who they are in business for and who makes it happen. Of course, I understand that you do not get a Harvard MBA just to scrape by on a measly six-figure income...forever. But corporate leaders need to be the ones to sacrifice. If it comes between your bonus and someone's job, please give up your bonus and keep the employee on the payroll. Goodwill is an asset that your company can not put in the bank, and you can not buy but it does collect interest. Once spent, it is harder to earn back than real money. Pink slips and bonuses spend goodwill.
If you have to lay off an employee, there is a right way to do it. If things turn around for the company, you may want that person back. Here is how it is done right...and should be done every time, don't use lack of proftis as an excuse. Out of my three lay-offs, this is the way it was best handled.
1. Provide a letter to the employee stating that the termination was not by cause. This will help the employee get a new job and will also help if the employee needs to negociate with creditors.
2. Provide both emotional and financial counseling. Help the employee and his family emotionally and help the employee keep his credit.
3. Employ a professional outplacement firm to help the employee find a new job. Many hands make light and quick work.
4. Keep the employee on salary for 60 to 90 days afterwards. Keep health benefits active for that amount of time as well. It will help the employee if there are not "pre-existing conditions" when new insurance is bonded.
5. Offer tuition assistance or a scholarship if retraining is needed.
6. If needed, pay relocation costs.
The more quickly and easily the employee transitions to a new company, the less he will gossip about the old one. And if this program sounds expensive, it is. But it is much easier than getting back Goodwill.
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