MANAGING DOWNSIZING, LAYOFFS, AND RIFS
by Don Phin
Many companies are facing the reality that they have no alternative to eliminating hours, reducing pay, or terminating employees. Not a fun task! Here are a few suggestions that will help you manage these activities more effectively:
- Identify your most profitable employees. If you can’t afford to lose these folks, make sure you don’t. Get them engaged in helping to determine the future direction of the company.
- Eliminate poor performers. Don’t wait to do this do it now. Here’s the question to ask: If they quit today would you be relieved or upset?
- Realize you’re not responsible for employees. You’re only responsible to them. It’s not your responsibility to maintain their employment; it’s the responsibility of the individual to remain employable.
- If you’re going to do it, do it swiftly. Studies about loss, including the impact of downsizing, terminations, etc. show that it’s best to handle this task swiftly.
- Think out-placement services instead of severance pay. Companies can hardly afford severances when they’re in the process of downsizing. However, you want to get former employees reemployed as soon as possible. See if any of your local temporary firms need workers. Provide downsized employees with a job-counseling program. Consider offering some executives outplacement services.
- Acknowledge the impact on those who remain. This is a great time to get employees engaged in the company’s future and help find solutions to help reduce costs and/or or grow revenues thus preventing further layoffs. HR That Works users are encouraged to read the Special Report: Downsizing, Layoffs, and Reductions in Force in the Special Reports area.