It’s no surprise to learn that printers, like all other employers, are doing what they can to rein in labor costs as the recession’s grip tightens. But, they appear to be making their cuts with more compassion than many. In a recent survey, Printing Industries of America found that nearly all (98%) respondents had taken at least one step to reduce payroll expenses. Of 23 possible actions, the four taken most often were limits on travel (67.2%), pay freezes (62.0%), overtime elimination (58.5%), and reductions in hours worked (52.4%). As alternatives to layoffs, says PIA, these belt-tighteners most likely are “the cuts companies make first because they have the least negative effect on employee morale.” Resorted to least were instituting early retirement programs (1.4%), cutting company wellness programs (3.3%), eliminating non-productive and non-profitable lines of business (8.7%). and cutting training not required by the government (9.4%). (The scarcity of cuts in wellness programs probably reflects the fact that most printing companies don’t have these programs in the first place, notes PIA). Only 9% of respondents have asked employees to take voluntary leaves of absence either as shortened work weeks or long-term furloughs. Nevertheless, at some companies, layoffs have been unavoidable: about 41% report terminating positions without expectation of recall. A smaller percentage (25%) say that those laid off could be called back. Of 424 participants, better than half (53%) are commercial sheetfed lithographers. Most (86%) employ 99 or fewer people. The smaller a company is, the harder it is to close ranks around the loss of even a single worker. PIA’s findings confirm that the industry’s small firms are protecting the livelihoods of their employees to the full extent that the profit-killing pressure of the downturn permits. We’d like to hear how your company is managing its labor costs and retaining its people in defiance of these odds. A preliminary version of the report, “Layoffs and Alternatives,” is available for download (PDF Link) from PIA.
Commentary & Analysis
Printers Seek—and Sometimes Find—Alternatives to Layoffs
It’s no surprise to learn that printers,
About Patrick Henry
Patrick Henry is a journalist and an educator who has covered the graphic communications industry since 1984. The author of many hundreds of articles on business trends and technological developments in graphic communications, he has been published in most of the leading trade media in the field. He also has taught graphic communications as an adjunct lecturer for New York University and New York City College of Technology. The holder of numerous awards for industry service and education, Henry is currently the managing director of Liberty or Death Communications, a content consultancy.
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Discussion
By Brian Regan on Apr 30, 2009
We work with many large and small firms and our temporary staffing service is used by most to help control payroll costs and associated costs. Not to replace a firms core staff, but to use skilled personnel strategically. The idea to keep your core staff numbers lean and mean and augment that as needed with skilled temporary staff. Many firms use it in the low skill areas, but we find the smaller firms hesitate on their skill positions. This is not the case with large corporations we staff were part of their staffing goal is to have as much as 30% of the company as some form of flexible staff. The impact can be quite profound in areas such as yearly unemployment costs, workers comp insurance premiums and healthcare costs (I suggest you use a staffing firm that provides benefits to the their workers). It also helps to understand and use effectively the flexible staff. In the past few years companies that we work with have come quite far in pin pointing when they needs someone for a shift and when not to have that person in. My slightly bias $.02 Brian
By Clint Bolte on Apr 30, 2009
A longer term perspective on the individual's part could have extremely beneficial effect. For example, I have had meetings with several design arts who have been laid off. I strongly encourage them to enter aggressively the free lance and independent contractor ranks. Barter their services and expertise if need be. Approach one or two social service agencies that they have an affinity for and offer in kind design services in exchange for meeting their Board of Directors. Constructive volunteerism during tough times has definite PR value as well as being disparately needed in every community. When the economy turns around, and it will, a resume showing this type of personal initiative will add real value ... unless the individual finds that the IC route is not the best career structure for their future!
By Michael J on Apr 30, 2009
It's a pity that some of the global vendors don't act with the same intelligence. At the end of the day, the core of value of any company are the experienced people that work there. Years of experience with customers and fellow workers can not be outsourced or quickly replaced. Small companies understand that. I personally know of a number of owners that will go weeks and sometimes months with no or very little salaries just to pay bills and not fire their people. The globals seem to have no problem with mass layoffs in the mistaken idea that they will satisfy Wall Street and meanwhile destroy the most important resource they have. Then they take a 6% cut in compensation and call that sharing the pain.
By Michael J on May 02, 2009
@ Brian, What I've seen from my graduates from Parsons is that "permanent freelance" is a model used by numbers of large corporations. The career path is sign up with a temp agency. They offer "on demand" gigs. If you do well either you will be offered a "full time freelance" or will have you one the list the next time there is peak demand. As you point out, it eliminates the cost of unused talent capacity. The irony is that the per hour rates can get pretty substantial and the creative is free to control their own time, which is seen an enormous benefit. One thing that slows this done a bit is that the schools do not focus on the survival skills - entrepreneurial - that make this work life liberating and enjoyable instead of stressful and constraining.
By Brian Regan on May 04, 2009
One the issue of free lance to me has been the benefits side of the equation. Freelancers have to secure their own healthcare and retirement plans. Going through a staffing agency allows them to enjoy the in essence group buying power for healthcare and often a 401k program were the staffing firm even offers some matching. I think Freelancers have been very strong for quite some time in the creative markets, but I think we will see it in other areas now, such as manufacturing.
By Brian Regan on May 04, 2009
Interestingly enough CNN money ran this piece today. http://money.cnn.com/2009/05/04/news/economy/freelance_workers/index.htm?postversion=2009050403 This piece goes directly to what I posted earlier. "But freelance jobs can be less cost effective for workers. Freelance paychecks can be erratic, plus freelance workers are vulnerable during down times, as they are the often first ones cut when companies scale back. Moreover, freelancers, who file taxes as self-employed workers, must pay out of pocket for their own health insurance, fund their own retirement plan and generally don't qualify for unemployment insurance benefits."