
Episode #23
The 30% Rule That Predicts Your Next Layoff
Labor cost over operating profit is the number that predicts a layoff. Jessica Hart, a fractional HR consultant in California, tells clients that above 30 percent, a contraction is coming whether or not anyone has announced it. She has run the people side of a Heineken acquisition, a COVID furlough, and an asset sale. In this episode: The ratio Jessica checks first with every client, and who makes the decision when you don't The grid she draws before any org conversation, and why the names come out of the boxes Why every company on the calendar cuts its travel budget in July, traced quarter by quarter The bike and the kickstand: which functions have to sit inside the company and which don't The Halloween costume a former employee suggested for her, and the case for outsourcing the reduction One day during COVID furloughing more than 40 people in California while Florida ran a mass hiring event What every employee should get on day one after you acquire their company, down to the benefits waiting period Why a text sent from a personal phone still shows up in court For HR leaders at PE-backed and mid-market companies who would rather see the contraction coming than be handed it. Episode Chapters: 00:00 | A 55-person company on its way to $200 million 05:12 | Meet Jessica Hart: Lagunitas, Heineken, and an MBA at twenty three 07:36 | Org design when the market is contracting 09:10 | Draw the grid, then take the names out of the boxes 10:17 | The 30% rule: labor cost over operating profit 11:53 | Total comp and the workers comp number nobody budgets 12:25 | Adding value without adding dollars 15:19 | Why every company cuts travel in July 18:52 | Core versus support, and the bike metaphor 22:21 | The grim reaper problem 27:25 | Furloughing California while Florida mass hires 30:10 | The employees who did not know they were for sale 31:49 | Day one after an acquisition 36:11 | Your proof is a handbook, a practice, or a text message Connect with Jessica at: https://jessicahartconsulting.com/ ️ Pulse by HRBench. Practical people analytics for HR leaders who tie their work to business outcomes. New episodes every week. Subscribe on Spotify, Apple Podcasts, or wherever you listen. Music licensed through Soundstripe. Code: VOT675NMLFTNRQKI






