Connect with us

Business News

Is a mass exodus at your company a blessing or curse?

A Mass Exodus can be any business leader’s worst nightmare. But should it be? Here are a few pros and cons to consider if you are faced with the threat of losing a large chunk of your human capital.

Published

on

mass exodus

mass exodus

Taking a meaningful look at a mass exodus

A mass exodus in any industry or country can pose a debilitating threat to the management team left behind in its wake. There are often warning signs that surface prior to any large group leaving a company and often, managers overlook these warning signs. Murmurs or rumors of people planning to leave, aggressive competition moving in, lack of internal promotion and changes of executive leadership all signal precursors to a mass exodus.

But once a mass exodus occurs, how a management team picks up the pieces and moves on is what determines success or failure. Here are some general cons and pros.

Cons of a mass exodus

Lack of consistency – having to spend the time and money training a new workforce can be a drain financially and mentally/emotionally on those left behind. In addition, those who are still there could be battling inklings of leaving themselves, thus inhibiting productivity.

Lack of knowledge transfer – many who participate in mass exoduses plan to leave their previous employers in a worse state than before, taking key proprietary information before backups and SOPs (standard operating procedures), QRGs (quick reference guides) or playbooks were written to document this information. Tell-tell signs of a planned mass exodus can be seen by your IT department: deletion of key files, movement of data from hard drives to external drives, etc.

Depletion of morale – this is a no brainer. When folks leave, the entire morale of the office changes…usually for the worse.

Pros of a mass exodus

New blood, new thought – Those who participate in a mass exodus were occupying positions that could have been for employees who had intentions of staying longer and investing in the company. I’ve seen, more often than not, that the employees who leave mass exodus style were itching to leave for some time and management wanted them gone, but there was not documented proof for terminating the employee with cause nor had another opportunity presented itself. Companies must evolve and grow. Getting new eyes in (and old eyes out) is like pruning the proverbial tree.

Opportunity for true training and group onboarding – Often the most overlooked benefit is a chance for management to adjust course, hire new people and roll out a new standardized mission and vision for the company. This allows for true onboarding for all employees. Think of it as a way to “mass indoctrinate” your employees.

Advancement opportunities may arise – A mass exodus separates the wheat from the chaff. It shows who’s willing to stay, whether through obligation or choice. This allows management to see current employees in a new light and provide advancement opportunities to those that might have been overlooked before.

Surviving a mass exodus

If a company’s leadership team views the exodus as a positive, rejuvenating experience for the business, then all signs point to success. The corollary is also true, if the exodus is seen as a huge negative, insurmountable experience then the company is probably headed for failure. The biggest reason a mass exodus is a nightmare is because, more often than not, they are unanticipated surprises.

Any manager should have two things in their front pocket: an exit strategy and a pipeline of talent to occupy each position that reports to them. Ways to mitigate the potential threat of a mass exodus include leveraging technology and using shared server storage or a cloud. In this way, data is easily retrieved by those who have left. Lastly, have your teams design and write SOPs, QRGs and Playbooks. These will be your saving graces in the event your best and brightest pack up and hit the road unexpectedly.

Monica Moffitt, founder and Principal Cultural Consultant at Tianfen Consulting, Inc., has traveled the world and enjoys linguistics and all things culture. Having split her career between project management and business analytics, Monica merges logic, fluency in Chinese and creativity in her new role as cultural consultant. She received a Bachelor of Arts in East Asian Studies/Chinese from Vanderbilt University and a Master of Business Administration (International Management and Marketing) from University of Texas at Dallas.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business News

Corporate-franchise relationships: How has COVID affected them?

(BUSINESS NEWS) Being a part of a franchise has made sense for a long time for both the corporation and the franchisee, but the long stretch of COVID is adding complications.

Published

on

A franchise cup on a wooden table.

Americans love a franchise. We love knowing that every Dunkin Donuts iced coffee will taste the same as it did 3 states away – and every McDonald’s snack wrap will meet our expectations.

Franchises rose in popularity after World War II, and the corporate-franchise relationship since has generally been a happy one – that is, until COVID-19.

What’s their relationship?

Franchises are easier to start than a small business from scratch. You receive a business playbook and brand loyalty from corporate – if the business at large is doing well, chances are your franchise will mirror that. No need for independent advertising!

From the franchises, corporate gets an upfront fee and ongoing royalties. (For a McDonalds franchise, that’s $45k and 4% of monthly gross sales, respectively.)

Basically, it’s win-win. Both parties are happy.

Pandemic strain

The pandemic has shrunk margins across most industries, and the chain hotels, restaurants and services have been hit hard. As a result, corporate is adding more costs for franchisees, such as big cleaning bills and promotional discounts to bring back some revenue during COVID.

However, with corporate still taking the same amount from the franchises every month, these newly instated policies threaten to drive some stores into the ground – and franchisees are fighting back.

“I get that franchising isn’t a democracy,” said a Subway franchisee, who objected to the unprofitable “2-Subs-for-$10” promotion that corporate was pushing for. “But at the same time, it’s not a dictatorship.”

What I see here is corporate greed at work; they need to keep their margins up in a sinking economy, so they’re looking to the pockets of their franchisees to make up for that lost dough.

The pandemic has not been easy on any business (with the exception, of course, of Amazon, Facebook, and Tesla, which is a whole other story). However, that’s the draw of being connected to corporate – you are tied to something bigger than your individual store, and will thus stay afloat as long as they do. It’s a big reason why many opt for starting a franchise as opposed to starting their own, independent small business.

I’m glad to see individuals fighting back against corporate policies that don’t benefit them. They held up their side of the bargain – let’s see if corporate can continue to hold up theirs.

Continue Reading

Business News

What to do if you think you have been wrongfully terminated

(BUSINESS NEWS) Being fired hurts, but especially if you were wrongfully terminated. Here is what you can do if you need to take action.

Published

on

Stressed man staring at computer after being wrongfully terminated.

While there are plenty of ways an employer can legally fire an employee, there’s also a long list of unethical and illegal methods. If you suspect you’ve been wrongfully terminated from your job, it’s imperative that you fight back.

Common Signs of Wrongful Termination

Research shows that around 150,000 people are unjustly fired every year in the United States. That’s more than 410 people per day – roughly 17 people per hour. Here are some common signs that you’re a victim:

  • Violation of written rules or promises. The vast majority of employment is known as “at-will” employment. This means you may be fired at any time for any reason (so long as the reason is not illegal). However, if there’s a written statement or contract that implies job security, then you’re probably not an at-will employee. Review all of your employment documents to see what sort of language exists around the topic of termination.
  • Discrimination. It doesn’t matter if you’re an at-will employee or not, employers can never fire someone based on discrimination. It’s illegal – point blank, period. If you suspect you’ve been fired because of your color, race, gender, nationality, sexual orientation, disability, age, religion, or pregnancy, discrimination could be to blame.
  • Breach of good faith. Employers are known to breach good faith when they do things like mislead employees regarding their chances for promotions; fabricate reasons for firing; transfer or fire an employee to prevent the collection of sales commissions; and other similar situations.

Every situation is different, but these three signs are clear indicators that you have a potential wrongful termination claim. How you proceed will determine what happens next.

How to Respond to a Wrongful Termination

Emotions tend to run high when you’re fired from a job. Whether you loved the job or not, it’s totally normal to run a little hot under the collar upon being wrongfully terminated. But how you handle the first several hours and days will determine a lot about how this situation unfolds. Now is not the time to fly off the handle and say or do something you’ll regret. Instead, take a diplomatic response that includes steps like:

1. Gather Evidence

Wrongful termination cases are usually more complicated than they first appear on the surface. It’s important that you focus on gathering as much evidence as you possibly can. Any information or documentation you collect will increase your chances for a successful outcome. This may include emails, screenshots, written contracts and documentation, voicemails, text messages, and/or statements from coworkers.

On a related note, remember that your former employer will be doing the same thing (if a claim is brought). Be on your best behavior and don’t let your emotions get the best of you. Avoid venting to coworkers or firing off short, snappy emails to your former boss. As the saying goes, anything you say or do can and will be used against you.

2. Hire an Attorney

Don’t try to handle your wrongful termination case on your own. Hire an experienced lawyer who specializes in situations like yours. This will give you a much better chance of obtaining a successful outcome.

3. Get Legal Funding

If you’re like most victims of wrongful termination, you find yourself with no immediate source of income. This can make it difficult to pay your bills and stay financially solvent in the short term. An employment lawsuit loan could help bridge the gap.

As Upfit Legal Funding explains, “Wrongful termination lawsuit loans provide the necessary financial assistance they need to reach a settlement. This funding helps cover basic living costs until the plaintiff is able to get assistance from their settlement.”

The best thing about these loans is that you only have to repay them if there’s a successful outcome. In other words, if the claim gets thrown out or denied, you owe nothing.

4. File the Proper Paperwork

Work closely with your attorney to make sure that your complaints and claims are filed with the appropriate regulatory agencies (and that you meet the required deadlines). Depending on the type of claim, there are different groups that oversee the complaint and can help you move in the proper direction.

Adding it All Up

Getting fired is serious business. And while there are plenty of legal reasons for being terminated from a job, it’s worth exploring what’s actually going on behind the scenes. If it’s found that your employer stepped out of line, you’ll be compensated in an appropriate manner. This won’t typically help you get your job back, but it can provide some financial rectification.

Continue Reading

Business News

Everyone should have an interview escape plan

(BUSINESS NEWS) A job interview should be a place to ask about qualifications but sometimes things can go south – here’s how to escape when they do.

Published

on

interview from hell

“So, why did you move from Utah to Austin?” the interviewer asked over the phone.

The question felt a little out of place in the job interview, but I gave my standard answer about wanting a fresh scene. I’d just graduated college and was looking to break into the Austin market. But the interviewer wasn’t done.

“But why Austin?” he insisted, “There can’t be that many Mormons here.”

My stomach curled. This was a job interview – I’d expected to discuss my qualifications for the position and express my interest in the company. Instead, I began to answer more and more invasive questions about my personal life and religion. The whole ordeal left me very uncomfortable, but because I was young and desperate, I put up with it. In fact, I even went back for a second interview!

At the time, I thought I had to put up with that sort of treatment. Only recently have I realized that the interview was extremely unprofessional and it wasn’t something I should have felt obligated to endure.

And I’m not the only one with a bad interview story. Slate ran an article sharing others’ terrible experiences, which ranged from having their purse inspected to being trapped in a 45-minute presentation! No doubt, this is just the tip of the iceberg when it comes to mistreatment by potential employers.

So, why do we put up with it?

Well, sometimes people just don’t know better. Maybe, like I was, they’re young or inexperienced. In these cases, these sorts of situations seem like they could just be the norm. There’s also the obvious power dynamic: you might need a job, but the potential employers probably don’t need you.

While there might be times you have to grit your teeth and bear it, it’s also worth remembering that a bad interview scenario often means bad working conditions later on down the line. After all, if your employers don’t respect you during the interview stage, it’s likely the disrespect will continue when you’re hired.

Once you’ve identified an interview is bad news, though, how do you walk out? Politely. As tempting as it is to make a scene, you probably don’t want to go burning bridges. Instead, excuse yourself by thanking your interviewers, wishing them well, and asserting that you have realized the business wouldn’t be a good fit.

Your time, as well as your comfort, are important! If your gut is telling you something is wrong, it probably is. It isn’t easy, but if a job interview is crossing the line, you’re well within your rights to leave. Better to cut your losses early.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!