Does Finland Deserve the Unemployment Boot and Then What? – by Jukka Niemelä

Microsoft’s announcement on July 17th, 2014 to lay off 14% of its total workforce hits Finland like a lightning. Suddenly. Hard. Damaging. Leaves only smoke behind. But does Finland deserve it’s own share of the boot? Microsoft will dismiss 1,100 employees in Finland, closing Oulu product development unit probably for good. In total, Microsoft will kick out about 50% of ex-Nokians they bought less than a year ago.On the other hand, the public statistics show that between January 1st and July 27th this year, 5,500 employees have got the pink slip. The number does not include Microsoft’s ex-Nokians. So, add to that the 1,100 and ex-Nokians represent about 17% of the total number of layoffs.

The thing is, that many decision-makers in Finland believed what Steve Ballmer and Stephen Elop said last year. Freely quoted:

Finland will become Microsoft’s hub.

We are a good corporate citizen in Finland. We will invest in Finland.

There are no significant plans to change the working locations during the integration. We expect Nokia teams to remain where they are.

Why would somebody believe such a global giant like Microsoft really cares about Finnish employment? In that perspective, we deserve the boot.

On the other hand, we as a nation have been forced to survive in tough conditions. The war indemnity after 1945 is a great example. When there is no choice but to survive, everything is possible. Where there’s a will, there’s a way.

One thing worries me though. I’ve seen it too many times too close what happens when a company gives the golden handshake to a layoff. The formula is pretty much formed from these elements:

1. Send dozens of applications to various places, to get at least some job.
2. Pay some of the bills with the golden handshake. Maybe even take some time off and go on a vacation.
3. Start your own company.

I have personally trained dozens of layoffs during the past two years. I am a member of the board of Federation of Espoo Enterprises. So I can see the other side of the coin, which is far from polished:

1. Employers get hundreds of applications. They don’t have time to review them all. Some of them are smart enough to see when the applicant is serious and when he is a tire kicker. No chances for an interview.
2. The golden handshake money will come to an end. Then there’s only the unemployment compensation. If the person has been smart, there’s an addition to it from the labor union. After that – you don’t want to think about it, if you have kids and a mortgage.
3. A company’s revenue during the first year is a round zero. Nada. When a corporate structure and the daily schedule are gone, and nobody is selling for you, the result is devastating.

What’s the cure? A company like Microsoft should clean the table by offering high-quality, tailored and localized outplacement services. Here are the key factors for choosing an outplacement service provider:

1. All consultants have been unemployed and/or laid off at least once. They know what it’s like.
2. The company can provide new job opportunities abroad. If there’s nothing in Finland, there’s something abroad.
3. The company has marketing communications expertise. The CV’s, cover letters and resumés stand out from the crowd.
4. The company has a proven track record of high customer satisfaction and long history in the outplacement business. There’s a lot of experience what works and what does not.
5. The company knows what it is like to be an entrepreneur in Finland. A true situation awareness helps the candidates decide whether or not they have what it takes to be an entrepreneur.
6. The company consists of entrepreneurs. Entrepreneurs always give 110%, not because they have to but because they want to.

The union representatives, CEO’s, HR directors and employees should consider carefully how to recover from this. Is it the money that matters, or the help company like ISG Finland can offer that will take all the unfortunate people forward?