In 2008, the St. Louis-based manufacturing company Barry-Wehmiller suddenly lost 30 percent of their orders due to the effects of the recession. The company needed to save millions, so the board and the company’s CEO Bob Chapman got together to discuss layoffs.
In the end, Chapman refused to let anyone go, so he and the board devised a furlough program, through which every employee would be required to take four weeks of unpaid vacation. But it was how Bob announced the program that mattered so much. He said, ‘It’s better that we should all suffer a little than any of us should have to suffer a lot.'”
The creation of the program at least meant that everyone was safe, and this established security unexpectedly triggered several effects. Morale went up. They saved $20 million. And most importantly — as would be expected when the people feel safe and proceed by the leadership in the organization — the natural reaction is to trust and cooperate.
Employees began to trade their furloughed time with each other. Those who could afford to take a longer unpaid vacation acquired a week or two of unpaid vacation time from those who couldn’t afford it.
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