Letting staff go then taking a VACATION?

[HeatherC]

I don't think it is tacky or insensitive at all. Unless you have ever been involved in starting/operating a small business, you cannot begin to know the stress this involves.

For all you know, he may have never even taken a salary and pumped all his money back into the business.

Then there is the problem of how he has had to pay self employment tax....which on top of all the other taxes can equal approximately 50% of anything the company may make.

Oh and don't forget the health care costs this business owner is probably paying on top of all this.

Then of course there are the long long hours trying to drum up new business, the accounting involved, etc..

I get upset when people think the "boss" should suffer like everyone else. Believe me....if they have had to cut staff and stuff they are suffering more than you will ever know.

And don't forget....there is nothing stopping his employees from starting their own company if they don't like the way things are going.

 

[aprilgail2]

Why is it his responsibility to make sure their needs are met before his? Not that a vacation is a need but what difference would it have made if he didnt go?

He may have money, his business does not....big difference.

It's not insensitive, tacky or anyone's business.

I totally agree!!

 

[Carly_Roach]

It's not insensitive, tacky or anyone's business.

Absolutely. I totally agree.

 

[tinah159]

his company, he can do what he wants.

 

[SundaeAfternoon]

I actually understand both sides of this debate.

On one hand, I can see how the OP would have been taken by what they heard, especially if the layoffs & vacation were mentioned in the same conversation. I would've thought it was pretty sleezy myself if someone told me they did/were doing the same thing. Just doesn't come out right.

On the other hand, like it's been reiterated before, the separation of business funds & personal funds ...yadda yadda..we've heard it. But it's true though & makes a valid point. If all of us stayed home and waited for everyone else to be taken care of before we spent $$$ on ourselves...this country would be completely ruined right now.

So it's easy to see where both sides are coming from this time. Any employer who hands out a layoff slip realizes what type of environment they are sending the now-unemployed out into. It ain't pretty. I don't think any employer with an inch of human emotion finds pleasure in doing this to others. But this economic climate is making that tough decision so inevitable for so many small business owners. Like the person encountered by the OP, they had no choice.

So who's side is right in this debate? I honestly can't tell you. When it comes to tough issues like this, I stick with Suze Orman's motto:
"People first, then money, then things."
The problem is, this country has it in the order of #2, #3, THEN #1. And thus, we find ourselves in this nifty little recession we're stuck in.

What the small business owner could have done was take a smaller, less expensive vacation, and use some of the leftover $$$ as out-the-door bonuses for the individuals he's having to send out into the 6-1 job market. Could've made the difference for them & their families when it came to a month's worth of groceries. And when the recession is recovering, then he could start planning a Vegas trip. Given the circumstances we're facing today, I'm sure his wife would understand and appreciate the kind gesture. Just a thought.

Very well put!!

My thoughts, too. Also, I keep thinking of the 1951 version of A Christmas Carol when Scrooge's old boss refuses to sell his business to a man whom he knows will ruin it and the employees (shown by the ghost of Christmas past).

Obviously, every case IS different, but, yes, there IS something a bit tacky about a boss who cares first and foremost about his own comfort over that of his employees. JMHO.

Took

Totally agree!

 

[FireDancer]

What the small business owner could have done was take a smaller, less expensive vacation

Just to play devil's advocate, but maybe the Vegas trip IS the smaller, less expensive vacation. The plan might have been to spend a couple of weeks in Tuscany and he downgraded to a week in Vegas. Maybe he downgraded from a suite to a cheaper room. We would probably have no way of knowing if the owner did downgrade.

Heck, had he decided to go to the Poconos and camp instead of Vegas the post might have been "How can he go camp with his family for a week after laying off employees".

 

[livie1205]

him going on vacation has NOTHING to do with his buisness.I do not think it is anyones buisness what he does with his private money.

 

[MineMail]

I don't think the man is doing anything that should be criticized, based on the one-sided image presented by the OP. I took too many MBA classes to not chime in and say the guy sounds pretty smart. You might want to think about investing in his business - the payoff could be great in about five years, if the products are good.

The "vacation" could very well be a trade show or convention. I went to WDW earlier this year because I needed education credits for my certifications and the conference was on Disney property. For all you know, that could be the case - many conferences take place in Las Vegas because it combines work and pleasure. Plus, it's a business expense.

These fairly-new employees might be getting a severance package, which is less expensive than their salaries and will help the company continue. Or, they could be underperforming and this is a way to get out of paying for incompetent help. You really can't say that the guy's being a Scrooge until you have the whole picture.

You said it's a small private company. That means he has already invested his personal money to start the business. He put his money in and is expecting the business income to support its expenses. It's not a popularity contest and he's not their father who has to take care of them for the rest of their lives. Business is business, it's nothing personal.

If he's paying people salaries and there's no work for them to do, the business will fail and EVERYONE will lose their jobs. I've been on the survivor, let go, and admin end of layoffs. Sometimes you just have to make a sacrifice to help the business survive. I also of several people who were let go and rehired once the business improved. The openings were never posted for anyone - the owner called them directly. The record (in my experience) is a wonderful woman who's been with a company since 1971, off and on. She's been laid off, rehired as a consultant, and changed to an employee FIVE TIMES. I don't think she's had more than three months away from the company and whenever they rehire her, they reuse her original hire date for benefits, etc. (Honestly: she's wonderful and she actually volunteered for the last layoff because she didn't want a young man who had just bought a house and had a baby to lose his job.)

The fact that it's a manufacturing business is significant: fixed costs, such as salaries and rent, can kill a startup in no time flat. If there is a loan involved, the loan agency puts tremendous pressure on small businesspeople to keep their expenses down.

Unless he's putting the trip on a credit card and can't afford it, I don't see a problem. There are many people who post here about having planned trips well in advance, having already paid for all/most of the trip, and have the unexpected happen days before - sickness, death, layoffs, etc. Unless you can get all or most of the money back, it's a waste to not go.

If he and his wife have the money for the trip, that's even more of an indicator that he's a smart business person. It means he knows to keep his business and personal finances separate. You don't run your business out of your joint checking account. It's just stupid to pour all of your resources into the business and be left with no savings and no way to take a vacations. That's one of the reasons new businesses go under and the owners have to file for personal bankruptcy.

I think affordable vacations are important, even if it's just a weekend at a friend's house. It's good for your health and mental well-being. Sounds like he could use a vacation, given his business pressures and the people who talk about him behind his back.

If he told the staff that he was taking this vacation, that would be insensitive. Sounds like he was making smalltalk with an acquaintance. I hope he or his wife don't see this thread and recognize themselves. That would be insensitive.

If you really find him that distasteful, don't talk to him anymore and don't buy his products.