Month: November 2008

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Background Checks Economy Human Resources Miscellany preemployment screening Retaining Employees Staffing Uncategorized

Global Layoffs in the Global Market

Manpower has reported there will be layoffs in all Western Nations as many companies try to survive the economic meltdown.  Layoffs will come apparently after businesses figure out their budgets for the coming year.

Obviously, this is not good news.  Nor is it comforting to know that every country in the world is affected.  Perhaps nothing is as telling that we are living in a global economy than our shared misery thanks to this economic decline.

I sense as well that everyone is looking at everyone else, waiting for somebody to do something.  Trouble is, nobody really knows quite what to do.  Or to once again employ prominent screenwriter William Goldman’s statement about the entertainment industry in particular and probably now to the rest of the world, “Nobody knows nothing.”

So we sit here playing with our paper clips and trying not to panic.   For those of us who have lived in rougher times, regional wars, ethnic cleansing and the threats of annihilation, this is but a speed bump in the overall scheme of things.   For those still around who remember the Great Depression, this doesn’t look so bad.

But for some of us who have spoiled ourselves with endless gratuity, trinkets, beads and high priced everything, it may look like the end of the world.   Perhaps it is a retrenching on a Global Level.  The U.S. can’t consume like it used to, and the rest of the world can’t try to be just like the United States.  Or something like that.

But for now people are out of work.  For them it is a disaster.  For the rest of us, we hold our collective breath.   Most businesses will survive.  Some will go under.   And some will innovate and not only survive but prosper in this very tough economy.   They will take advantage of the layoffs to beef of their own staffs with the best selection in the pool of cast offs.   When it all shakes out, not only will they be standing there, but they will be way ahead of the pack.

Look at it this way, even economic disaster is just another phase in the cycle of history.   This too will pass.

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Background Checks Business Research Economy Human Resources Miscellany News preemployment screening Staffing Uncategorized

How Laid Off Journalists Can Rebrand Themselves

For several blog pieces now I have taken note of the slaughter in the media industry.   The news industry, especially, has been decimated by layoffs and publication failures.   For every media group, it seems, laying off a thousand employees or more is only a start in the cost cutting.   Marty Pompadur, the exiting Chairman of News Corp Europe recently predicted a steep recession for the media industry.   Long and very deep.

In the face of the downturn I have been suggesting in different blog articles that savvy business hire laid off journalists to handle some of their proposals, marcom materials and to assist with public relations opportunities.   Apparently, Former General Manager of MSNBC Dan Abrams had a similar idea, only he took the concept a major step further and went into business for himself.

According to the Wall Street Journal, Abrams has founded Abrams Research, a media strategy firm.  The new firm is designed to assist senior executives in dealing with the public relations challenges they confront on a regular basis.    The public relations issues can range from blogger adversity to mergers and acquistions.

Abrams has assembled a network of media personalities who will work with clients.   The firm will be charging an hourly fee.   In all, it is not only a terrific idea it is one whose time has come.   Certain public relations firms may be equipped to handle this kind of subject matter.   But a good many are not.   Additionally, this kind of work requires hand holding and lobbying, interfacing with the media on levels the average public relations executive would find inaccessible.

Given the roster from which Abrams can draw, I am sure the preemployment screening aspects will prove a snap.   As more and more media people are laid off, he will have a rich pool to choose from.  So will you, if you belive you can retain media savvy folk for in-house assignments.   Even for contractual work, or part time.

It’s a smart move.   Check them out before you hire.

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Background Checks Business Credit Reports Business Research Economy Human Resources Miscellany Personal Background Checks preemployment screening Staffing Uncategorized

In Bad Economic Times Buy Up Your Competition

These are rotten times, economically speaking.  In fact, there may be a couple of reasons to point to this being rotten times on a lot of levels.  I’e never been known for my rosy outlook, but I do look at these times as quite exciting.  Despite the economical downturn, in fact even because of it, as well as obstacles and threats there are also opportunities.

There is an article by Henry Blodget in the Silicon Alley Insider that explains how this could be advantageous times for Microsoft.  Blodget writes that while others struggle to survive, Microsoft has the opportunity to buy its competition.   I should add not only to buy its competition but those companies that in the long run would serve to make Microsoft stronger.   Blodget writes, quite correctly, that Microsoft must then put the Internet based companies it buys under a single, umbrella branding in order not only only to gain optimum advantage but to keep from failing.

Reading Blodget’s article reminded me of my grandfather and his circle of friends and how during the depression they were among the few who were cash rich.   Rather than try to hoard their assets, well they hoarded enough to cover themselves, believe me, they moved forward and bought up the competition and any assets they deemed beneficial in the long run.   They bought these assets for cash and ins ome cases for pennies on the dollar.

I believe this type of thinking can apply to Microsoft and any other business out there with extra cash in pocket.   Some may disagree and think it’s best to watch the dollar at a time like this.  Others will see the wisdom, think in terms of the long run and make offers at what may prove to be bargain prices.   Years from now, when this economic downturn is on the rebound, they could be the companies that profit the most.

Obviously, you got to be careful.   Due diligence, coupled with specific corporate research is the mandate.   And then there is the hiring.   You will need to staff key executives.   Those familiar with turnaround and restructuring.   Do you background checks carefully on these folks.  Make sure they can really perform and are not are not bunch of Wall Street guys who can do well only in the good times and will drive a company into the ground when generating profits is not like shooting fish in the barrel.   There are some very capable senior executives out there.   Despite the recent focus on MBA’s, which can be important, the more capable are supported with years of experience.   Years, meaning they have been through harsher times and realize what is necessary to stabilize a business.

In the short run, you as the company owner may grimace when you have to produce the precious cash that allows you to buy both competitors and strategic assets.   But years from now, or sooner, that grimace could turn into a nice big smile.

Check them out before you hire.

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Background Checks Business Research Human Resources Miscellany preemployment screening Staffing Uncategorized

What the Big Three Means to US Bottom Line

It is debatable whether the Big Three still make crummy cars.    In fact, while their reputation for making lousy vehicles hangs over them like the dark smoke of Los Angeles canyon fires, they do in fact make some pretty decent vehicles.   Some.   Not all. Far from it.

The Big three also make decent trucks.   And when fuel efficiency was not an issue, they put out some SUV’s that were boxy and ugly, but had that popular appeal.   And they did run some nice commercials.  At least the ad agencies did.   But with the exception of the trucks and the SUV’s car sales were declining precipitously.

What the Big Three could never do is make the necessary adjustments.   They revelled in the once glorious  past where America was king of cars.   They reacted to the competition.   First they didn’t react at all, and when they were clearly putting out inferior vehicles, they raced to play catch up.   Come the SUV and Truck period they moved ahead for awhile, just enough to sit their fat rumps down and rest on their laurels.

But what the Big Three have never done is think with an eye toward the future   They are not innovators.   Their thinking is journeyman thinking.   And now with the three auto manufacturers ready to fall into bankruptcy, they are asking for a bail out.   Forget the early bailouts, where they took the money and did nothing.   Forget the fact that their chief officers seem to care little for accountability.   Stepping down for them seems out of the question.   They haven’t yet seemed to recognize they are building cars nobody wants to buy.

Do they have a plan that would determine how best to retool and use the bailout funding?   That would take too much effort.   Do they have an innovative bit of engineering on the production drawing boards?  Hardly.  But they do need money.   They want money?  For what?  To save the car industry or to merely postpone certain disaster.

What is particularly startling is not so much how the industry effects us as the industry alone.   That is pretty evident.  In terms of jobs on the assembly line and immediate suppliers, we can all pretty much determine that has a major impact.   But according to an article in AD Age what we don’t think about is how the demise of the Big Three automamakers would so grievously affect Amerca’s overall economy.

The impact the demise of the Big Three would have on advertising alone is unsettling.   Two and a half percent of the overall Cable Television revenue comes from automobile commercials.   Nearly 7% of the ESPN revenue comes from car  and truck commercials.   Car advertising makes up almost 6% of the nationla television spending.   The same kind of figures holds true for every media venue.

And then there are the ancillary suppliers.  The parts manufacturers and their laborers.  When you add it all up it is not just whether they put a car on the road, it’s whether their demise is a highway to national economic disaster.

The giants have become dwarves and they now are on the verge of extinction.  Other companies, more innovative, leaner and meaner companies will probably rise up to take their places.   We are America, after all, and nothing seems to motivate us better than a crisis.   But, still, at the end of the day the Big Three automakers are more than themselves.   They are larger than the sum of its parts.  But they are past the day when all is romantic and appealing, when we can just put the top down and drive off into the Sunset.

They may cruise for awhile, but then their tires will flatten, the paint will rust, and the entire industry will find itself in the cosmic salvage yard.    Whether they get bailed out or not, the way they do business and the cars they manufacture has got to change.   The thing is, the big question, is how did they mess up so badly?