Fear You Will Get Fired?

Corporations are downsizing in response to economic events. This is nothing new. What is new is corporate culture. It's important to understand the nature of the shifts going on—and they reflect shifts occurring in the broader culture as well—and know that there are specific steps you can take to protect yourself.

Then Versus Now

Then: during a previous recession, a well-known company was forced to terminate more than one hundred employees. We partnered with the company to publish advertisements with this headline: “Our Loss Can Be Your Gain.”

Our client wanted to help its employees quickly recover from a necessary economic decision.

Now: Ford Motor Corporation employees with eight or more years of service whom the company has identified as demonstrating a pattern of “declining performance” have the option of taking a severance program or enrolling in a performance “enhancement plan.” If they fail to demonstrate improvement in six weeks, they will be terminated for cause and receive no or limited severance benefits. (Eckert, 2022).

Whether Ford employees accept the severance plan or fail the “enhancement” program, they have been publicly tagged by Ford as “losers.”

Then: A Board of Directors of our client company ousted the founder/chair/CEO. The public statement was that the founder had “resigned” to “pursue other interests.” Nobody believed the press release. The board wished to provide the founder a graceful exit.

Now: The Board of Directors of STORSIMPLE Holdings, Inc. fired its cofounder and chief executive officer, Xiaodi Hou. The press release stated the board had “lost trust and confidence in Dr. Hou’s judgment, decision-making, and ability to lead the company.” (Somerville &O’Keefe, 2022). This press release may be more truthful. But it diminishes Dr. Hou’s dignity.

What Has Changed?

These four examples illustrate a cognitive shift in corporate leadership occurring in the United States.

The old paradigm focused on examining employee termination policies from a systems perspective. In the case of our large company, treating employees was good business practice. “Our paths may cross again. Why burn bridges?”

The new paradigm is “You Are On the Bus or Off the Bus?" Instead of taking a systems perspective, issues are framed in binary terms. Binary perspective reduces complex issues to either/or, 0/1, winner/loser.

Business is simply reflecting a broader change in U.S. culture. Think about this common binary way of framing political differences: “I am a Patriot. You are a (choose one) Socialist/Fascist Seeking to Destroy Our Country.”

Survival Steps

If facing termination, think about the corporate severance program offered to you on a 0-10 scale. A Zero would be “You Are Off the Bus. We Want You Out with The Least Cost to Us.” A 10 would be “We Want to Treat Your Departure with Respect. Our Paths May Cross in the Future.”

If you evaluate the termination between a 0-3, you may require the services of an attorney to help you negotiate a more favorable agreement. You need an advocate.

Another scenario: The company severance program is in the 0-3 range. But the company offers you an option of signing a promise not to sue the company for a new severance program in the 4-5 range. Again, we suggest you retain an attorney before signing any legal document.

Where to Find an Attorney

Seek an attorney who specializes in employment law relevant to the state where you work. Understanding the practical application of state-level legal precedent is important.

You want an employment attorney who will charge you a professional fee. Avoid attorneys who offer to take your case on a contingency fee basis. Such attorneys may have a bias for litigation. And that might not be in your interests.

Try to get recommendations from attorneys you know. Another option is to contact the office of the executive director of your town’s Bar Association. Try your state Bar Association.

Bar Associations often have employment law interest groups. Get names of attorneys who are listed in leadership roles.

What to Negotiate For:

Your attorney can help you understand your leverage to negotiate a better deal. The attorney can directly represent you or coach you to represent yourself. Below are some of the issues to discuss with your attorney:

Duration of salary continuation.

Duration of benefits continuation.

Might there be an option to receive salary continuation as a “consultant” to the company? Such a relationship provides a platform from which to conduct your job search.

What will the public statement be about your departure?

What will the company say in response to this reference question: “Is this person eligible for rehire?”

How extensive is the noncompete segment and for how long?

Company-Sponsored Outplacement

If your company provides job-search campaign management assistance, are you limited to using the services of the firm the outplacement company selected by the employer who fired you? Can you negotiate an option to select your own counselor? The firm’s costs can remain the same. Your commitment to the service increases if you are the one to select the professional you want to work with.

The general tendency to think in binary frameworks also applies to you. Your framework in conducting the search may be "I'm easily employable or nobody will want to hire me." The value of outplacement at this time of stress is to provide you with an impartial, nuanced perspective.

Abraham Lincoln once said, “An attorney who represents himself in court has a fool for a client.” The same can be said for a business professional who launches a job search campaign without the benefit of professional guidance.

Five-plus years ago, you were younger, and the technology platforms used were different. Are you truly up to date for launching an effective campaign? In selecting an outplacement firm, geographic location of the counselor is not important anymore, since most meetings are online. What is important is that the outplacement consultant you work with has experience in helping job candidates in your industry and at your level.