Monday, October 4, 2010

RadioShack Gaff: Update

My typical HR engagements with small businesses look like this:

Business:) This is my problem.  What can we do?
Me:) Here is solution A and the pros and cons are X.  Here is solution B and the pros and cons are Y.  Here is solution C and the pros and cons are Z.   What are your major goals and concerns so  that I can further help you narrow down your choices?
Business:) D and E
Me:) Based on that my recommendation is F.

Now think back to 2006 and when Radio Shack decided to let 400 employees go by email.

Radio Shack:) We need to do a reduction of 400 employees. How should we do it?
HR/Legal team:) Let's email them all. Then everyone gets the message at the same time and we don't have to worry about the grapevine.
Radio Shack:) Sounds great.  We'll also save a ton on paper and postage.
HR/Legal Team:) Yes - using the fastest form of information transfer is really the best idea. It's simple and easy.

Now, I'll admit - when I put on my management hat, I see operational efficiencies galore: management doesn't need to fly around facing the people and looking at them in the eyes while they are told they no longer have jobs, paper is saved (good for the pocket and the environment) and no one has to be paid to lick stamps!  But seriously? This really happened? Someone thought this was a good idea?

Quote for quote, this what the 400 unlucky employees read the following when they showed up to work: "The work force reduction notification is currently in progress.  Unfortunately your position is one that has been eliminated." 

So never mind the bad press that they should have been prepared for, when employees feel they are treated without respect or dignity they are much more likely to claim wrongful dismissal - and with 400 fighting together, I don't care how good your legal team is...an organization is hooped.

So here's the update 4 years later:  Radio Shack's annual revenue has dropped about 16 percent (or nearly a billion dollars) and its annual income has dropped about 24 percent.  How about employee satisfaction? Well let the client service tell you that story!

At the end of the day - it doesn't matter how big or small your organization is.  Treat people with respect - if you were in their shoes and you were about to be terminated, do it the way you would want it done to you.  Losing your job isn't the end of the world, but how you help them move to the next stage makes a difference...for them...but also for you.  It shouldn't take an HR expert to guide you this way and point out the pros and cons. 

But if you need one...I'm here - and I will guarantee if we work together, I won't cost you your credibility that Terri Hatcher and Howie Long helped to build for you in those terrible commercials or a billion dollars in lost revenue.

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