Who's the First to Be Fired?

With the economy on life support, CNN Money asks which employees will be the first to be let go in any downsizing. Their conclusion? Those employees who perform poorly, have high salaries, and aren't vital to the business. A few key quotes:

• When a workforce must be cut, "employers need to keep their best talent," Challenger said. "You want to keep the people that you think are your A-players."

• "When companies cut back, they certainly look hard at people at the high end of the salary range," Challenger said.

• Employers will also take a hard look at each division or department, to find areas that can be cut without sacrificing successful business operations.

I've been part of a few "down-sizings" or "right-sizings" if you prefer, and this list is pretty spot on based on my experience. If your job contributes to the company in a vital way and you're a good performer, you probably won't have any trouble keeping your job no matter what your salary. Now if you're in a department that's not really that important and/or you're not the greatest employee, it could be time to think about Plan B -- especially if you have a high salary.

There are exceptions, of course. If your company is in trouble and in danger of going under, then no one's really safe. Then again, maybe you're in an industry that's actually thriving these days. For instance, I've seen reports that say grocery stores are doing well as people are eating at home more often, so those in that industry might actually thrive in these tough times.

Comments

[Thomas]

The poor performers don't go first if your unionized,it goes by seniority unfortunately.

[guinness416]

After 11 Sept, the construction firm I worked for in NYC was going through tough times (our biggest client was based in 2 WTC, and we were burning a lot of resources on pro-bono work). The first to go were the high earners, but they were also the "A players". Most of us who were, I guess, "B players" at the time all quit within months and the bosses were left with a world of headaches. Some business owners just aren't as smart as CNN Money columnists.

[Erin]

I've been through a couple of "downsizings" myself and what you say may be true for a first round of layoffs. But a lot of times when a company lays people off because it is doing badly, multiple rounds follow for a year or more until it either folds, gets acquired, or gets back on its feet. When it comes down to it, there's very little security in the corporate world anymore, so everyone should have a plan B.

[Shaun Connell]

Economic tough times always drive us back to the basics: job security is found in being a great, invaluable worker. Most of the "how to survive a crisis" tips and hacks out there work just as well during prosperous times. Still, it's good to be reminded.

(And I love CNN Money :D)

[Kaitlyn]

Excelling at your job can backfire! I was so good at the first position they placed me that they cross-trained me for my entire department. This makes me the jack of all trades, master of none. If my company needs to get rid of someone, I'll be the first to go, since I don't have a permanent position - I just float around and help whichever section needs it the most.