In the Name of Global Financial Crisis – Redundancy and Loyalty

The following blog is Part 1 of an article published by PBEL in the Christchurch Star in the 1990’s. Is history repeating itself? Already we are seeing some employers making staff redundant in questionable circumstances and adopting selection processes that say loyalty counts for nothing. This is being done in the name of the Global Financial Crisis. Have they forgotten the importance of investing in loyalty?

I saw a TV programme on Hubbards, the man and the company: The one that makes Hubbards cereal. He had the common touch and an approach to managing his business that brought with it respect, loyalty and a feeling of being appreciated. Staff spoke highly of him. He showed loyalty, consideration and an interest in what they were doing, without being patronising.

Is history repeating itself? Already we are seeing some employers making staff redundant in questionable circumstances and adopting selection processes that say loyalty counts for nothing.

Television gave airtime to a doubter to add the necessary balance and there was a suggestion that Hubbard was eccentric. Some would say he was old-fashioned. The truth is that he understood the importance of loyalty and seemingly had resisted the way of the new corporate world in which loyalty is what is expected of an employee but often not returned.

Two employees, Jill and Mary recently found this out. They had worked for a company for 20 years between them. The company announced a restructuring and advised that staff were going to have to apply for jobs. They discovered the jobs had new names but the duties and responsibilities were, but for a few minor ones, much the same as they were already doing.

Interviews were conducted in another city by a human resource firm contracted by Jill and Mary’s employer. The company was represented in the interview process by managers who had never worked with them. There was no consultation with those who knew them, including their managers. Neither of them was appointed.

Jill was the personal assistant. Her manager had to tell her she did not have the job. He was on the verge of tears. She was shocked. Mary bothered to ask why. She was told in a phone call that the tests they had put her through had shown that she was inflexible and not adaptable. She replied that if that was so then how come she had just learnt a new computer accounting software package the company had introduced. The reply she received was “what package?” She ended the conversation by reminding the manager that she had one failing and that was that she called a spade a spade. And she did.

Mary wrote to the chief executive whom she felt she knew. The reply, presumably crafted by a faceless subordinate, provided the corporate response. Scratched in pen on the bottom of the letter from the chief executive were the words “I’m sorry”.

Both Mary and Jill were replaced by people from outside the company. They were paid redundancy compensation, given a farewell and dispatched into an over-crowded job market where they have been left to explain how they could not retain their own jobs.

Jill and Mary’s experience is not unusual. The worst offenders are some of the big corporates. The consequence of their actions is that an increasingly large number of employees are being taught that loyalty counts for nothing.