Don't fire the wrong employees to make ends meet

When it comes to firing workers because of the economic downturn, be careful whom you choose to lay off, and who gets to stay, according to the Diamond Management & Technology Consultants which examined 415 companies worldwide with revenues exceeding $100 million.

The company's report, "Don't Waste a Crisis: Lessons from the Last Recession," found that companies with the right mix of employees improved their margins by 20 percent after a recession while those who selected the wrong workers to lay off saw a 10 percent decline in their margins

The company warned that cuts should be made selectively while keeping sights set on future goals. "It can't be a knee jerk response to the economic environment; it needs to thought out in terms of long-term planning," Jennifer Daniell Belissent, Ph.D., a senior analyst for technology product management and marketing at Forrester told CIO.com.

"If you cut across the board, you run the risk of cutting capabilities that will be important coming out of the recession," Chris Curran, chief technology officer at Diamond Management & Technology Consultants told the magazine. "Conduct a spending review across major functions with an eye towards cutting costs without cutting to the bone."

Companies that are trying to keep their bottom line black must remember that tomorrow will be a better economic day. And if you layoff the wrong people, there will be no tech personnel with the needed background to help you keep moving. So, choose wisely.

For more on this story:
- check out this CIO.com article [1]

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