It can be difficult to define a marketing budget, but it helps to look at how peers are allocating resources. We decided to start with ourselves.
Layoffs Come Last
In our last post, we opened a dialogue about some critical considerations as we face our next recession. As a downturn becomes a greater certainty, we discuss the elephant in the room: company layoffs. Check out this installment of our Think Big video series.
It can be tempting to consider layoffs as a quick and surefire way to reduce expenses. However, doing so is often shortsighted - and introduces a slew of hidden consequences. In fact, after a layoff, survivors experience a 20% decline in job performance - and the companies that go through the layoff are twice as likely to file for bankruptcy.
There are many alternative cost reduction strategies that can turn layoffs into a last resort, not a first. In this video, I sit down with my colleague, Jeff Wester, to discuss:
- The hidden long-term costs of laying people off
- Other cost reduction strategies, including all the measures you should be taking before considering layoffs
- How one company, Gravity Payments, found an innovative way to crowdsource an alternative solution to staff layoffs.
- Other companies who found creative cost control measures to avoid layoffs - and won