What's Worse Than Laying People Off? Telling Them It's Hard to Do

Media professionals are forced to report on their own troubles. Sagging bottom lines, layoffs and other woes are making headlines. But there's more for publishing executives to learn that may make life easier.

It's how to negotiate and what to negotiate, says Stephen Frenkel, director of negotiation programs for Boston-based Mediation Works Inc.

INBOX: In an economy rife with layoffs, do you advise your publishing clients to first consider pursuing cost-cutting concessions from employees?

STEPHEN FRENKEL: I think layoffs are one option among many. In these kinds of situations it's important to be strategic and think about your long-term goals and consider where you'd like to be -- not only now, but eventually when the economic stability returns. … You can use a combination of moves to cut costs and enable yourself to move forward at the same time.

INBOX: Besides labor, what parties should publishers be negotiating with during this recession and why?

FRENKEL: It's OK to renegotiate your contracts. … What you're hoping is, in an ideal world, that your provider, whoever you're negotiating with, and yourself, can maintain your expected margins. But it's also important to share in the savings if prices are coming down for materials or anything like that and also to share the burdens in a bad economy. You want to be able to share them so that you can build that partnership, maintain your level of integration with each other [so] both of you survive the economic downturn and put yourselves in a position to do business together when things improve.

INBOX: How should publishers negotiate with advertisers, and is this more important than labor negotiations?

FRENKEL: Find out and articulate what your own value proposition is. Help your advertisers see what value placing ads in your publication will have for them. Is it exposure? Is it increasing branding? What are the benefits? And also help them see the long-term vision. Point out to them that advertising in leading publications is what gets them the business that gets them through these tough times, rather than the opposite.

INBOX: What concessions could a publisher reasonably expect from vendors?

FRENKEL: Changing payment terms is one of those great creative options … . It's a real benefit to the service provider to have cash flow and can help them justify a decrease in price and cost. … We don't like the idea of people making concessions because they really do just end up giving up things that they need and want and will be resentful later.

INBOX: If extreme rent reductions are necessary, should publishers first negotiate with their current landlords, move or negotiate while checking out open houses?

FRENKEL: I think that's a great question and I think it can be applied to lots of different industries and lots of different negotiation challenges right now. Especially if you take it not just in terms of rent, but in terms of negotiating for services and, 'Should you be shopping around or should you stay where you are and look for better deals?' The most important thing in these types of questions is to understand what the landscape is and what's out there before you go to negotiate with your current landlord.

INBOX: Publishers are worried about profits right now and that means that their employees are worried about keeping their jobs. You suggest that negotiators should separate people from the problem. How do you suggest doing so in this situation?

FRENKEL: What you don't want to do is backlash on your employer or make it so that you're burning your bridges and not being able to come back to the table if things turn around. … If you're the employer, I think it's important to also keep your doors open. If you're laying people off from a logistical perspective and you have no control over it, the more background and information you can give people, the better. … The last thing you want to do is leave people wondering why they lost their job or why them or anything like that. … You also don't want to, as an employer laying people off, you don't want to go into a 'woe is me.' You don't want to tell the person who's losing their job how difficult of a decision and an action it is for you … . So give them the floor, but give them as much respect and opportunity as you can and help that you can, especially if they're being laid off as a budget cut rather than a performance review.

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