by Karen Yvonne

Created on: January 22, 2009

High performance isn't a guarantee that you will survive a layoff in recessionary times. All the dedication, hard work, strong performance appraisals and recognition, may not factor as strongly as we like to think when companies are faced with lay off decisions.

First of all, a recessionary layoff is a financial decision, not a performance-based decision. Companies may use the lay-off as an opportunity to clean house of low performers, but you should never assume that anyone was laid off for performance reasons. A recessionary layoff is about dollars.

Companies use any number of strategies, methods and approaches to identify how they are going to cut costs and retain on-going business capabilities. If it is a first ever layoff, the likelihood is high that the company will look at performance or at job functions that don't contribute directly to revenue. In some industries, a first ever layoff is likely to include cuts in departments like event planning, training, corporate travel, administrative services and human resources.

While it seems short-sighted to cut functions that support and allow "production" resources to focus on revenue generating activities, it unfortunately happens when the tough decisions are made.

Companies that value employee longevity may contain layoffs to newer employees that haven't had an opportunity to demonstrate their commitment. They may try eliminating open staff requisitions, look at encouraging early retirement and other forms of attrition that allow them to forestall a layoff. In very rare cases, companies may look at salary or benefit cuts that allow them to retain all staff.

Another strategy companies use, although they may not openly admit it, is cutting higher salaried employees. If your high performance puts you at the top of the pay scale, you may be in jeopardy when it comes to layoffs. However, high salary layoffs will be balanced very carefully with people at lower salary levels to avoid discrimination issues. Older employees, typically at higher levels because of their higher experience and accumulated knowledge, tend to have the higher salaries. Companies normally ensure a mix of personnel to avoid giving the appearance of targeting "protected classes".

Legalities of layoffs aside, injustices do happen and anyone can be included in a layoff. There are things you can do to make yourself less vulnerable. One of the best things you can do is network within your company. Get to know as many people as possible. Volunteer for projects outside your own department. Participate in company events. Develop a reputation as someone who understands how all parts of the company work and knows who to go to for anything. The more you know about your company, the more roles you can fill, and the more that management knows you know, the less likely you will be included in a layoff.

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