Mistakes to Avoid when downsizing
4 Major Mistakes
Downsizing is an art that not many knows how and what to do. The bad thing is when done wrongly, it will make the situation even more grim than before but on the bright side, it does not happen often.
So when it ever happens and you are in the management position handles the restructuring. This article will help you navigate through some of the obstacles you may face. Avoiding these costly mistakes can ensure the survivability of the company and hence ensuring you, your employees and the company remains competitive and motivated to ride through the storm together.
1
Assuming Management Knows How to Manage Through a Downsizing
2
Not Treating the Departing Employees with Dignity and Respect
3
Reducing Communication to the Surviving Population
4
Eliminating Severance and Outplacement
Things to take note of
Assuming Management Knows How to Manage Through a Downsizing
Delivering the message
What typically happens during a layoff including common emotions and reactions. These factors may impact the surviving workforce which is the most crucial to you at this moment in time as you have lesser people possibility doing more work than before. Companies should use this as a training opportunity, providing managers training on how to deliver an effective notification meeting.
Not Treating the Departing Employees with Dignity and Respect
Gracefulness and Graciousness
We repeatedly hear the horror stories of layoffs occurring via email or the simple lack of respect shown to those who are let go. People in positions of authority are called into an office, told they no longer have a job and escorted by security or HR to remove their personal items and monitored to protect against vandalism or theft.
Morale can plummet if you don’t treat the employee with respect and dignity that they deserve after working long and hard for you and the company.
Go out of your way to demonstrate that you care about the employees being laid off by creating the best possible exit program you can. This will make this entire process much less painful and easier for all concerned. Also, your remaining employees are watching and assessing how you handle this matter. If you do it with great care and concern, they know you will be kind to them as well.
Reducing Communication to the Surviving Population
Communication is KEY
Many times managers will decrease their visibility and communication simply because it’s easier than dealing with emotions or because they don’t have the answers to employee questions. While the employees who survive layoffs may feel fortunate to still have a job, they also feel demoralized. They are filled with anxiety and fear that they may be next and feel guilt for surviving the layoff. All of this is followed by feelings of cynicism, suspicion, and reduced allegiance you, the manager, and the organization.
The time after a layoff requires more communication, even if it is the simplest statement, “I don’t know” or “I will update you.” Allow employees to express their concerns and reassure them with communication to increase loyalty, and enhance trust. Employees must feel at ease in order to focus on the job at hand than to spend their time worrying about things that is beyond them or even you. Such distraction often leads to them to perform slower or worse to look for other opportunities
Eliminating Severance and Outplacement
Look long term and not the short term savings
Law mandates that employees affected by large layoffs receive some type of assistance from their employers, typically severance and continued health benefits. However, many employers should do more than what is required by law because they recognize the value of “compassionate outplacement.” Providing additional benefits such as a Career Transition program can help organizations avoid long-term hidden costs of layoffs including a tarnished reputation, diminished customer loyalty and potential legal action, all of which can outweigh the usual cost-savings predicated from a layoff
We can help too!
At Ecowork Space, instead of locking you in long term with inflexible lease terms, we provide flexible workspace which allows you to up or down size your team. Pay only for what you need (example meeting/function rooms) and save time paying utilities, arranging for cleaners, and more! We will settle all these mundane work for you or when you needed it.
You also get to save on renovation and set up cost as our offices are all well furnished and nicely decorated. Customisation is also possible!
If you wish to find out more, do not hesitate to contact us.
