The U.S Bureau of Labor Statistics released its end-of-2009 figures showing which jobs suffered the most layoffs and had the fewest available openings:

1. Architects. Losses in the profession hit 17.8%. The hitch here is that the building industry is so volatile that the need for architects could jump by the end of the year.
2. Carpenters. The drop in building has hit this group hard. Nearly 270,000 jobs disappeared, a 17% drop. But as with architects, there could be some activity in this job category by the end of 2010.
3. Production supervisors and assembly workers. Combine the movement to non-U.S. facilities and the dismal economy, and what you get is a 16% drop in jobs. And most analysts expect worse times for this sector.
4. Pilots. Sully Sullenberger probably won’t have to worry, but many of his colleagues will. Jobs for pilots and flight engineers dropped by 30.4%. The outlook could get sunny if the economy grows; so will air travel and the need for pilots.
5. Computer software engineers. Blame this one on the move to offshore programming. The field saw a 10% decline. But if you’re a hiring manager, don’t expect the glut in these types of job-seekers to last too long. Typically, when the economy picks up, employers tend to play catch-up with hiring IT people, and there could be a shortage before you know it.
6. Mechanical engineers. Jobs in the profession fell by nearly 18%. The source of the big hit: the decline of the automotive industry. A strong economy generally results in a shortage of engineering types in general, so when the economy rebounds, so should the profession.
7. Construction workers. Again, it’s all about the housing and building markets. Demand for laborers fell by 14 percent. The future of the market depends largely on how quickly and how many federal stimulus dollars get pumped into the economy.
8. Tellers. Automation and a bad year for banking led to a 12% drop. Analysts expect a slight rebound in the field as banks make a comeback.
9. Bookkeeping, accounting and auditing clerks. More reflections of the troubles in the financial sector: jobs in this field fell 13%. Things could get better for an unexpected reason. If government, as promised, produces a string of new regulations on the financial industry, the need for bookkeeper types could expand as employers scramble to keep up with the regs.

Once the dust settles from layoffs, pay freezes and other cutbacks, employers are left with a group of staffers with a wide range of negative emotions.

Here are four proven ways to rebuild worker morale and productivity:

1. Game plan

Decide how the cutbacks will be communicated to those who will be left standing. Work out how you’ll reassign tasks ahead of time, and communicate why the changes were necessary.

Also, outline your company’s long-term recovery plan and how employees will contribute to that plan.

2. Let them talk

Two common reactions to cutbacks are anger and fear. Give employees a chance to vent their emotions and postpone your response until later — after workers have made all their feelings clear.

Positive body language, eye contact and nodding your head show that you care without having to say a word.

3. Keep their trust

It’s natural for people to feel defensive when cutbacks occur. These four actions will help you ease their minds and maintain employees’ trust:

• Show concern
• Be straightforward and honest
• Avoid getting defensive yourself, and
• Acknowledge and celebrate successes (whether big or small).

4. Set up training

As employees’ responsibilities shift, odds are many will need additional training — and developing training plans prior to any cuts will make the transition easier.

Tip: Assess which employees have a positive outlook about the changes. These workers will make the best leaders, whom people can go to for training and with questions during the transition.

In a desperate attempt to avoid being laid off, a Spanish man is believed to have hired a contract killer to murder his boss, Spanish newspaper El Pais reports.

The head of audiovisual services at the Barcelona International Convention Center allegedly paid a team of six Columbians to shoot and kill the convention center director, who had planned to lay off the arrested man.

Other recent extreme actions by fearful employees include an indebted builder who kidnapped his bank manager at gunpoint and the head of a construction firm who threatened to set himself on fire unless he was paid the debts he was owed.

You probably don’t have any examples that extreme, but what strange things have you seen anxious employees do?

The inspiration for this revolutionary strategy: British Airways suffered its greatest full-year loss since being privatized back in 1987 — a loss of $595 million in U.S. dollars.

Employees are being urged to sign up for unpaid leave or unpaid work to help the company save cash and fight for its survival.

Despite BA CEO Willie Walsh’s magnanimous offer to “lead by example” and forgo his own monthly paycheck in July ($100K), the reception to BA’s proposal hasn’t been all too warm.

The union that represents thousands of BA ground and cabin workers, UNITE, said that even though Mr. Walsh could get by after working an entire month for free, its members didn’t have the same luxury.

We’ll keep you posted on the success of British Airways’ strategy.

Some of the highlights from the survey from consultant Watson Wyatt:

• 53% say they’re not planning any layoffs for the next 12 months
• 67%  say they’re not going to use hiring freezes
• 76% aren’t anticipating salary freezes
• 70% won’t change employer contributions to 401(k)s and other retirement plans

There’s one idea lurking behind the numbers: The managers surveyed are saying, “We’ve done all we can to cut back, so there just isn’t any more we can do.”

On the downside:

• The managers surveyed said hardship withdrawals from retirement plans went up — 35% said they saw such withdrawals in February, compared to 44% in April
• Also in the February-to-April comparison, the number of companies that decreased or eliminated 401(k) matches went from 12% to 22%.

The numbers from the full report are at www.watsonwyatt.com/news/press.asp?ID=21018.

A study out of the University of Puget Sound (summarized in the Journal of Employee Assistance) followed the careers and health of 410 managers who’d been involved in layoffs. The summary: Those managers suffered from higher rates of ulcers, sleep problems and heart problems.

Some other results:

• The younger the manager, the more likely the person was to develop the problems. Researchers believe that younger managers with less experience tend to take layoff responsibilities more to heart and feel more responsible.
• Problems developed more often among managers who had been with one employer for an extended period. Likely reason: Those managers were more likely to know or be friendly with the people caught in the layoff — increasing the guilt factor among those managers.
• The phenomenon is an extended one. Many of the managers suffered from the problems for as long as six years after conducting the layoff.

Few HR managers or employers in general see a layoff or round of terminations as a chance to polish the company’s image. They may be missing an opportunity to show the employer’s best side in the worst of times.

The downsides of a layoff are obvious to anyone who’s ever presided over the process:

• lawsuits
• a reduction in productivity, at least in the beginning
• bitter ex-employees and low morale among remaining employees
• bad public relations
• shaky loyalty from concerned customers

So, is it really possible to conduct a layoff and end up looking better — or at least as strong as you were pre-layoff? That depends on how the layoff is handled.

The message
If the decision has been made to reduce the workforce, you should create a  document that details the reasons for the decision and the goals the company hopes to achieve. The message should be in clear, concise language and in no way appear to be a cover-up or just some official company line.

What’s the point of the document? For one, managers need to understand the reasons for the layoff — besides just “to cut costs” –  in order to support it. That’s especially true for first-line supervisors who often get the bulk of questions, phone calls and complaints. The management team must be able to respond consistently with accurate, consistent information — to employees and to customers who get wind of the layoff.

Few people are going to like the decision, but they’ll accept it better and think more of the company if the reasons given are clear, honest and consistent.

The meetings
Informing laid-off employees of the decision is always one of the toughest parts of the process. Most experts suggest you meet with affected employees individually and inform them of their selection in private meetings. Practice and rehearse what you’re going to say — not so that it sounds staged, but rather so you’re sure you get the words just right.

If individual meetings are impossible due to large numbers, consider conducting meetings by department, shift or unit. That way affected employees are surrounded by familiar faces and not by strangers.

Be brief, consistent and direct. Explain how and why the job was eliminated and specify whether the layoff is permanent or temporary. Outline any recall or rehire rights, available severance benefits, health insurance conversion rights, termination payments and transitional services, if available.

Because employees will be shocked and upset during these meetings, their ability to absorb the information may be limited. Be sure to provide all relevant information in writing and provide the name and contact information of individuals — probably in HR — who will be available to answer questions later.

Carefully select the location and time of the announcement and meetings. If possible, choose a segregated section of the building, preferably an area with a direct exit, so affected employees do not have to pass by their work area or large numbers of people after receiving the bad news. By allowing employees to maintain their dignity and, to the extent possible, their privacy, you can minimize the inevitable negative feelings and leave those employees with the impression that the company still cares about them and their feelings.

Additionally, consider having employee assistance professionals on site on the day of the announcement or available at a specific time and location later in the day or in the days following.

The future
At this time, perhaps more than ever, your remaining employees need attention. You’re going to count on them get the business through the difficult times and help meet the goals hoped to be achieved by the reduction. This is the time for management at all levels to be visible and vocal. Keep employees updated about the financial condition of the company and seek their input for other cost-cutting measures. Look for low-cost ways to recognize hard work and commitment.

There is no way to fully protect a company from lawsuits or hostile reactions following layoffs, but treating the affected and remaining employees with sensitivity and compassion will go a long way to minimizing the risk.

A note about lawsuit risk
Some suggest that to protect against lawsuits, any layoff list should reflect the overall makeup of your workforce. For instance, if your workforce is 40% women, your layoff list should consist of no more than 40% women.

But just about everyone in the real world knows that’s not practical. Most employers sit down and evaluate the list according to needs and employees’ skills and seniority, and then let the chips fall where they may.

What you should do: Take a look at the final list and see if certain groups are overrepresented or underrepresented. If any red flags pop up, that doesn’t necessarily mean you’re going to change the list in some attempt to avoid a bias suit. What it does mean is that you’re getting a signal to double-check all the relevant documentation and reasons for the selection of each employee, in case there ever is a challenge to the selections.

You don’t need to listen to a debate to know life is going to be tougher for a lot of people, including those who come to your workplace every day. People are edgy about it, too, and they’re likely to show that edge in the way they behave and perform. And people on edge are more likely to sue or file other complaints against their employers.

Employee-relations specialists say HR can expect that dealing with stressed workers will become a big part of the job over the next several months. Some suggestions for helping people through tough times:

• If you have layoffs, cutbacks or other bad news: Don’t let it dribble out. If possible, let people know all at once and as soon as possible about the bad news. That won’t make anyone happy, but it will create less stress and avoid an atmosphere in which people are always looking over their shoulders.
• If you hear rumors: Jump on them right away, and let employees know the truth. It’s not that you’re ever going to stop the rumor mill from grinding, but at times like this, you have to address them with employees immediately. People are expecting the worst these days, so the longer a rumor lives, the worse it will get.
• If you sense negativity: Be positive. Sure, that’s easy to say, but there are a hundred little ways you can create a positive atmosphere. Example: When you hear someone say something good about another employee, pass it along to that employee — “Hey, Bob mentioned what a great job you did on that rush order.”

First, though, most recommend that you tell employees why it’s belt-tightening time. Most of them know anyway, but they still won’t like it when new, tougher measures get dropped on top of them without explanation.

 After explaining, here’s what the four employers did, as reported in the Los Angeles Times:

•  When Pro-Temp Inc., a cooling and refrigeration service company, hit its worst slowdown in eight years, the company’s owner started by replacing the formal holiday dinner with a pizza lunch. Then he cut employees hours, but saved people from drastic cuts by cross-training them to do work most of them had been unfamiliar with. For instance, some office personnel learned to do low-level maintenance on company vehicles. So when the action is slow in the back office, those people can switch over to maintenance – and avoid missing a day without pay.
• Hewlett-Packard has avoided layoffs in the past by using a ”nine-day fortnight” policy that requires workers to take off every other Friday without compensation. So, yes, there’s a pay cut, but employees also at least get the benefit of an extra day off every two weeks.
• The City of Birmingham began offering the option of a staggered four-day workweek for more most of its employees to save on fuel costs and buffer against layoffs.
• And on Aug. 4, Utah will become the first state to mandate a four-day week for most workers, with an expected 20 percent savings in energy costs once buildings are closed on Fridays.

The scene

As HR manager Lynne Blakely walked in, CFO Carl Greene said, “Close the door, Lynne. This is highly confidential.”

Carl pulled up a spreadsheet on his computer screen, and pointed to it. “We’re looking at projected sales, and the picture’s dim for the next several months,” he explained. “We’re confident we can pull the numbers up eventually, but for now there’s going to be some belt-tightening.” 

“Since you called me in here, I’m guessing we’re talking about salaries,” Lynne said.

Until things turn around

” That’s right,” Carl nodded. “It’s not a disaster or anything, but we’re going to mandate that no one gets a raise for at least a year. That’ll give us a little breathing room.” 

“There’s bound to be some grumbling,” Lynne noted. “Is there room in the budget for some type of benefit to soften the blow?” 

“That’s a possibility,” Carl said. “Maybe we can offer something to make up for the no-raise policy.” 

“Do you have any ideas?” Lynne asked.

“A few,” Carl replied. “We could provide some type of flexible schedule. Plus, we do have a few bucks to spend on something like tuition assistance, within limits. But I really want to know what you think,” he continued. “What should we choose? What’ll keep people onboard and productive until things turn around?”

“Let me think about it,” Lynne said.

If you were Lynne, what would you recommend as a benefit to keep morale up and lessen the shock of no raises for a year? 

Bonnie Steinert, HR director, Unity Bank, Clinton, NJ
What Bonnie would do: Since there seems to be a little money available, I would divide up that amount equally among our employees as a small bonus in lieu of a raise. And everyone, regardless of salary scale, would get the same amount.
Reason: I’d of course explain we’re taking that action instead of layoffs or other cuts, to help people understand that we’re doing all we can and we still value them. And giving out an equal amount would reinforce the idea that we’re all in this together and everyone is being treated equally.

Rosalie Crump, HR/Payroll director, Williams, Inc., Ketchikan, AK
What Rosalie would do: A lot of people here come from busy families with two wage earners, so I’d recommend some kind of flex-time in place of raises. We’d have to put some limits on it because of business reasons, but I think we could make it work and have people see it as a valuable benefit.
Reason: Next to money, time is the most valuable thing. People are so busy with work and families that they appreciate a little extra time or some flexibility. If we implemented flex-time, I’d explain why and note that it’s on a temporary basis until business picks up.

Gary Lane, owner, Lane Exteriors, Cutler, ME
What Gary would do: I’d consider using some kind of profit-sharing or incentive bonus for employees – as business improves, people would get more money.
Reason: You have to give people a sense that if you’re asking them to share the pain when times are tough, you’ll give them a chance at the pleasure when things pick up. In other words, we would have them understand that, yes, things are tough right now, but if they pick up, you’ll be rewarded.