The following statement from our CEO outlines a new approach to workforce reduction at NQP.
“NotQuiteProfitable.com has always prided itself on being not just ahead of the curve but ahead of the straight line as well. As the rest of the industry has slid downhill in recent years, we have been able to leap over them in our quest to get to the bottom first.
One of the greatest expense categories on any company’s balance sheet is the one in a bold font. This is often the line for labor costs. It should not surprise anyone that labor costs are typically tied to the number of people working for the company. In an attempt to improve the bottom line, many large companies have been attempting to reduce labor costs through the regular use of layoffs. The business press is full of articles on the latest workforce reductions and the anticipated cost savings. The press releases on these workforce reductions attempt to show Wall Street that the company is taking aggressive steps to reduce costs. The hope is that their share price will benefit as a result.
What the press releases fail to discuss is the negative impact on employee morale and productivity for those remaining after the current round layoffs are finished. The focus of layoffs is on expenses in the upcoming quarter. This ignores the wasted investment in developing those workers at a tremendous cost to the corporation.
At NQP, we believe we have found a revolutionary approach to layoffs that has all of the benefits in terms of cost reduction with none of the negatives. We have decided not to spend millions of dollars recruiting, hiring and training workers only to then spend additional millions on early retirement packages and other related expenses. In place of that antiquated and inefficient process, we have chosen to layoff our workers before we hire them. By proactively laying off people before they are hired, we are saving significantly in upfront costs. At the same time, we are saving on the actual layoffs as well. We have labeled this approach “Preemptive Layoffs”.
Cost of Traditional Preemptive
Recruiting & Hiring $$$ 0
Training $$$$ 0
Termination $$ 0
Productivity $$$ 0
Bottom Line $$$$$$$ 0
At NQP we feel that hindsight is one of our core competencies. By reversing the current industry practice, we are moving our backend into the prominent position it deserves.”