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Managing the Employee Factor through Cycles 195

ees were taking care of themselves personally, particularly
when business conditions created much higher stresses on
them. His coaching included telling them to encourage the
employees to continue their regular activities, particularly
those that helped balance their business and personal life,
e.g. regular workout routines, family activities, and time off.

Recognizing the management and employee
power balance

For much of our remembered work history, it was an em-
ployers’ market. However, the degree to which management
have the power in the hiring process has started to fluctuate.
Some of this was due to baby boomers moving out of the
workforce, some was the different attitude towards work of
the Generation Xs. Basically though, regardless of all the
impacting factors, it’s a supply and demand question.

This economy has seen a balance of power shift back to
management because now there is an oversupply of employ-
ment and constriction in positions. Just as with customers
there’s a downside to making quick sales instead of spend-
ing the time to invest in relationships and build trust, so
with employees it’s critical to spend the time to get (and to
keep) the best employees for the company and for the
customer.

Employees are the lifeblood of the company. When econ-
omies contract, it’s a critical decision point as to what is the
best path to try to reduce employee expenses. What is the
best path?

As was well articulated in As Layoffs Spread, Innovative
Alternatives May Soften the Blow* premature layoffs can be
a disaster.

* Published November 26, 2008 in Knowledge@Wharton.