The New York Times has an interesting take on managing in a downturn here.  It’s a joint interview of a defense lawyer (for the employer view) and a plaintiffs’ lawyer (for the employee view).

Here are the highlights . . .

Remain calm:  Employers should recognize that it’s a very tough time for employees and take steps to help calm them.  However, employers should also recognize that there’s a fine line between reassuring and overcommitting.  The latter can result in a lawsuit if, for example, an employee closes on a house in reliance on promises of job longevity.

Expect litigation.  Litigation and damages rise in a downturn because it’s more difficult for former employees to find new jobs.  Expect longer lawsuits and less willingness from employees to sign severance agreements with releases.  As the plaintiffs’ attorney noted:  “If someone who felt mistreated at a prior job is at home day-to-day instead of confronting the daily issues at a new job, it is emotionally more difficult to move on.  Instead, they will revisit the old job in their mind and think about what went wrong.  There is nothing else for them to be consumed with.”

Bottom Line:  Be compassionate and careful.

Click here and here for more tips on how to manage in a downturn.

This entry was posted on Tuesday, October 14th, 2008 at 6:44 am and is filed under Employment Law News, Litigation, Recession, Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.