In 1981, Lincoln Electric implemented the Leopard Program to avoid laying off any of its employees when sales dropped as a result of the steel-fabrication industry’s flight from U.S. shores. The program, which encouraged employees to change their spots, involved 68 volunteers (54 factory workers and 14 clerical workers). The company trained them as assistant salespeople. Four years later, when the economy rebounded enough for the sales team to be disbanded, the Leopard Program had netted more than $10 million in sales.
In the early 90s, then $1-billion Virgin Atlantic Airways, reeling from a drop in travel revenues caused by the recession, offered unpaid leaves of three to six months to 600 staffers, who kept their travel benefits on virgin flights during their time off. To this day, in what is clearly an outgrowth of that earlier policy, employees can take a career break of up to one year as part of the company’s standard human-resources policy, though they do forfeit their benefits.
Twenty-two-billion-dollar Cisco Systems responded to the prospect of layoffs by developing a one-year Community Fellowship Program as an alternative to the typical package of severance plus unemployment compensation. Of the 300 employees who applied to be fellows, Cisco matched 81 with non-profit organizations in need of technology help. The fellows will receive one-third of their salaries and full benefits through Jan. 31, 2003.
