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September 18, 2018

Layoff Aversion

The San Diego Workforce Partnership (SDWP) and California Manufacturing Technology Consulting (CMTC) presented this information at the California Workforce Association’s 2018 Meeting of the Minds to teach organizations ways to streamline how they conduct layoff aversion services. The presentation was given by Robert Chu, SDWP Business Programs Specialist, Kathleen Webber, CMTC San Diego Business Liaison, and Rocio Leon, CMTC Manager of Workforce Partnerships.

What is layoff aversion?

Layoff aversion helps employers avert layoffs through business process improvement projects. It is funded under Rapid Response, which provides resources to workers who have been laid off—functioning as a “sister” program of sorts by offering a proactive solution to businesses at risk of laying off workers.

Why layoff aversion?

In 2013, unemployment was at 7.8%. High unemployment meant extra funding for Rapid Response and an opportunity to get creative. Enter the Employee Retention Program, a layoff aversion service.

SDWP honed in on advanced manufacturing as the sector where these dollars could make the most impact. There are more than 3,200 manufacturing companies in San Diego County, 82% of which have fewer than 20 employees.

But only companies with 50 or more layoffs are required to issue a WARN—the document that lets SDWP know an organization is laying off workers. This meant the majority of San Diego County manufacturing firms did not report layoffs and SDWP was unable to serve businesses and workers affected by this valley in the business cycle.

Due to difficulty with tracking these layoffs, SDWP turned to advanced manufacturing experts CMTC, who are intimately familiar with common issues, milestones and turning points businesses experience in the advanced manufacturing sector.

How does layoff aversion work?

CMTC uses their industry knowledge and connections to identify manufacturing companies that are at risk of laying off workers due to operational and management inefficiencies. From there, they assess a company’s needs and provide alternatives to layoffs. Alternative solutions may include management consulting, business process improvement, product development, supply chain optimization and marketing strategies that help stabilize or increase a company’s bottom line. Past clients received services such as financial planning, ISO standards implementation (e.g., ISO 9100), and IT system development at no cost.

During the 2017–2018 fiscal year, the Employee Retention Program served 22 businesses with a reported cost savings of $2.4M. Additionally, 439 layoff were averted/jobs were created.

For more information, contact

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