Economy Still Slow, Layoffs

[The Fake Lonnie Finch]

We'll be making our first ever layoffs this Friday. Sad. Hard to do. But, nothing's changed since last year. The tight credit is killing businesses, and we're a company that deals 80% in businesses and only 20% to individuals.

I really wish the government would stop hassling banks. It's doing nothing but hurting businesses. I don't understand the disconnect between politicians and basic economics. It's maddening.

[Harry]

I hear you bro. Tough times for everyone right now.

[yyz28]

Yeah, we've had to do some things we didn't want to do either. It's really a shame, but unfortunately, it seems to be reality right now...

[The Fake Lonnie Finch]

Yeah, we've had to do some things we didn't want to do either. It's really a shame, but unfortunately, it seems to be reality right now...

Told one of the ladies this morning. Awful. Just awful. She was only part-time. The one Friday morning will be worse. It's a salaried position. Still holding out hope, but it's a long shot now. The numbers just aren't there.

Our clients are hurting, so we're hit as well. Our hits aren't fatal, but they were deeper than expected. Had a couple of customers - formerly high dollar customers - go bankrupt, and another had one of his main properties foreclosed.

I don't know, guys, but it just doesn't seem to be getting better. And, Texas has it better than most states. In commercial insurance, we see the front lines of how the economic battles are going because the majority of premium rates are based on either sales or payroll.

When those are down, it's a sign of trouble. Premiums remain flat so far on our 2010 renewals, an indicatinos that sales aren't improving and payrolls aren't expanding. The banks are so tight with money and aren't in the mood to loosen up with all of the harsh rhetoric against them coming from D.C.

Worst of all is that Wall Street seems to have rebounded without stronger sales and employment numbers. I fear that's a sign that they expect a slow recovery and have adjusted their expectations to match it.

[KingDL1]

Told one of the ladies this morning. Awful. Just awful. She was only part-time. The one Friday morning will be worse. It's a salaried position. Still holding out hope, but it's a long shot now. The numbers just aren't there.

Our clients are hurting, so we're hit as well. Our hits aren't fatal, but they were deeper than expected. Had a couple of customers - formerly high dollar customers - go bankrupt, and another had one of his main properties foreclosed.

I don't know, guys, but it just doesn't seem to be getting better. And, Texas has it better than most states. In commercial insurance, we see the front lines of how the economic battles are going because the majority of premium rates are based on either sales or payroll.

When those are down, it's a sign of trouble. Premiums remain flat so far on our 2010 renewals, an indicatinos that sales aren't improving and payrolls aren't expanding. The banks are so tight with money and aren't in the mood to loosen up with all of the harsh rhetoric against them coming from D.C.

Worst of all is that Wall Street seems to have rebounded without stronger sales and employment numbers. I fear that's a sign that they expect a slow recovery and have adjusted their expectations to match it.

I had to lay off a full-time person, who I hired, that was doing a great job last February and worse I had to pick the person from my team. Definitely one of the worst things I ever had to do. We are seeing some rebound in Retail real estate several of the National tenants are starting to do new stores in Dallas, this time last year everything was frozen. Hard times are still on some areas of retail like Jewelry stores. Video stores and book stores will be going away for the most point, but that is less about the economy then changes in technology. No mistake about it, Retail is slow and very cautious, we are glad to see it moving.

[The Fake Lonnie Finch]

Cautious good news:

We've looked at the numbers again and may be able to keep the full-timer. I'm hopeful that we can. It's not an integral position, but still one that would take much of our time otherwise to cover - and time is money.

Looks like it's going to come down to the cost benefit of time of remaining employees covering the job versus staying the way it is. We are busy in other areas of business and don't exactly want to pull others away from their tasks, essentially adding more to their already full plates.

One thing is for sure, the isn't fun.

[The Fake Lonnie Finch]

Okay, employee was given the option to stay with a pay cut. Probably a mistake, but it's hard to do this. Their little area is the smallest of our operation, and the money just isn't coming in there the way it is in other areas.

Plus, this person has, in the past, been someone who has pushed the limits on company standards on sick days and vacation days. We're small, so we fly way beneath the radar on most Federal employment and labor laws.

After this employee's sick days were used last year, we got a letter from a doctor saying that they would be off for a certian amount of days because of a sick spouse and wouldn't be able to return to work until a week later.

Well, that's all nice FMLA language - but, it doesn't apply to companies our size. So, we called said employee and made clear in no uncertain terms that they were to return to work immediately.

My guess is this person will leave. But, you never know which way a cat will jump.

[KRAM1]

Lonnie....sounds to me like you guys would be much better off without that employee. Small firms cannot afford employees who push the envelope they way this one has. Not that big companies are not hurt, it's just that there are more folks to "cover". I think you might be better off if the employee resigns and then you can perhaps hire a new staffer at the lower salary who would be a good team player for your firm. I would look at this a s a good opportunity to shed my firm of an employee who just doesn't see the bigger picture at the firm and who is not at all concerned about the well being of the firm or their fellow employees.

Man, sometimes you get lucky. In my current role we had the same thing happen, and the employee decided to leave voluntarily. We have been so much better off and so much more productive since that employee left.

We are also quite small...6 full-time. We cannot afford to have a staff member counting the clock, abusing sick time, etc. It just kills production and places a much bigger burden on everyone else.

You might want to thank your lucky stars after all....

[The Fake Lonnie Finch]

Lonnie....sounds to me like you guys would be much better off without that employee. Small firms cannot afford employees who push the envelope they way this one has. Not that big companies are not hurt, it's just that there are more folks to "cover". I think you might be better off if the employee resigns and then you can perhaps hire a new staffer at the lower salary who would be a good team player for your firm. I would look at this a s a good opportunity to shed my firm of an employee who just doesn't see the bigger picture at the firm and who is not at all concerned about the well being of the firm or their fellow employees.

Man, sometimes you get lucky. In my current role we had the same thing happen, and the employee decided to leave voluntarily. We have been so much better off and so much more productive since that employee left.

We are also quite small...6 full-time. We cannot afford to have a staff member counting the clock, abusing sick time, etc. It just kills production and places a much bigger burden on everyone else.

You might want to thank your lucky stars after all....

That's exactly where we are - six full-time. Actually, we know people in the industry who do just as well as we do or better with two or three employees fewer than that!

This person came in and wowed our president with, what we now know, was just alot of talk. Sales is sales. You can either sell or you can't.

The thing is, the person is actually a good worker, and probably is capable of doing more with that desk. The problem is - as is 99% of the cases - this person's family always seems to be having this problem or that. Never anything major, but always and consistently it's something that leads to timeoff requests that fall outside of our employee manual.

(In a way, the cynic in me says that people like this try to take advantage of small businesses because you are on a more personal level. They are not going through some large corporate HR department which denies variances in policy without ever having to see the person face-to-face.)

We'll adjust either way. What this person needs is to go back to work for a large company - the type that the Federal government forces to give time off, through things like FMLA, everytime a third cousin, twice removed, sneezes. We just can't do it and have that area of our business be consistent.

If the person leaves, we'll simply circle the wagons and everyone will pitch in a little to that desk until we decide what to do with it. Fortunately, we're not rocket scientists, so it will be more of an annoyance than a difficulty.

[KingDL1]

That's exactly where we are - six full-time. Actually, we know people in the industry who do just as well as we do or better with two or three employees fewer than that!

This person came in and wowed our president with, what we now know, was just alot of talk. Sales is sales. You can either sell or you can't.

The thing is, the person is actually a good worker, and probably is capable of doing more with that desk. The problem is - as is 99% of the cases - this person's family always seems to be having this problem or that. Never anything major, but always and consistently it's something that leads to timeoff requests that fall outside of our employee manual.

(In a way, the cynic in me says that people like this try to take advantage of small businesses because you are on a more personal level. They are not going through some large corporate HR department which denies variances in policy without ever having to see the person face-to-face.)

We'll adjust either way. What this person needs is to go back to work for a large company - the type that the Federal government forces to give time off, through things like FMLA, everytime a third cousin, twice removed, sneezes. We just can't do it and have that area of our business be consistent.

If the person leaves, we'll simply circle the wagons and everyone will pitch in a little to that desk until we decide what to do with it. Fortunately, we're not rocket scientists, so it will be more of an annoyance than a difficulty.

It is a great time for most companies to cut the dead wood, but in my case when the company worked its way to my department I really didn't have any dead wood and it just sucked. I have let go people for this kind of work ethic you are talking about and it really did not bother me much. A hard worker with talent sucked to release though, the good news is one of my other employees left to go back to school after they were married later that year. So I was able to bring back the employee 5 months after the layoff. (We did give a pretty good severance package at the time) I did feel right with the world once they were back at work.

If I was in your shoes I would probably let them go and hire someone new, there are lots of motivated people out there now without a job. Even if you wait a few months, to save some money or get past the any severance you may give.

Edited January 29, 2010 by KingDL1