A release crossed my desk the other day from the Providence office of Lee Hecht Harrison, the national human resource consulting giant. It suggests that companies have learned many valuable lessons during an era of downsizing. But it also notes that there are plenty of things that companies could do better when it comes to laying off valued workers.
Here are three areas – in the opinion of Lee Hecht Harrison – in which companies do well when it comes to the difficult endeavor of downsizing and the accompanying areas in which they could improve:
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Most companies today do: Know their employees’ skills and consider
redeployment. In the late 1990s, many organizations made the mistake of laying
off employees who were no longer needed in their current functions, but had
skills that were needed in another position or area of the business. Organizations
have learned that prior to deciding whom to cut, they should assess employee
skills and try to match them with what the organization needs in the short and
long term.
Most companies today don’t: Make redeployment attractive to employees.
Companies underestimate employees’ ability to say no to redeployment offers
that don’t meet their personal or professional needs. Even in a bad job market
– and certainly in a healthy one – many people are unwilling to make internal
moves that require relocation or don’t meet their career goals. Employers need
to understand the limitations of redeployment programs that don’t take employee
needs into consideration, and take time to figure out how to do it correctly.
Most companies today do: Communicate the business reasons for the downsizing.
Companies have gotten much better at making their employees aware of the forces
driving their downsizings, and have also learned to communicate how the cutbacks
will make their organizations healthier moving forward. Doing so is critical
to maintaining remaining employees’ morale, especially when downsizings are
motivated by strategic rather than economic reasons. If their own initiative
weren’t enough, Sarbanes-Oxley and recent corporate scandals have forced companies
to keep employees informed of their financial and business challenges.
Most companies today don’t: Communicate who will likely be affected.
A 2003 Lee Hecht Harrison survey showed that more than three-quarters of those
laid off in the prior six months anticipated their company’s downsizing, but
half were surprised that they were affected. Companies too often get hung up
on concerns about confidentiality during the downsizing process. It would serve
their employees better to give them notice that they might be terminated as
early as possible so they can begin to prepare for their transition.
Most companies today do: Prepare senior managers for their role in
the downsizing. Research has shown that having senior management that is visible,
forthright and accessible throughout the downsizing has a positive impact on
surviving employees’ attitudes about the organization in the aftermath. As such,
most organizations now coach their top executives on how to conduct themselves
and what to communicate at all stages in the process.
Most companies today don’t: Prepare line managers delivering the message.
With downsizings more common, organizations often don’t invest in face-to-face
training for line managers on how to convey the news to their subordinates.
They assume their managers know what to do and may provide a written guide instead.
However, without proper preparation, managers are likely to do notifications
poorly – negatively impacting those dismissed and creating additional stress
for managers already in a difficult position.
Gil Swick, a senior vice president and general manager of Lee Hecht Harrison’s Providence office, points out that how a company handles layoffs plays a big role in retaining remaining employees and when it comes time to recruit new talent. He expects that as the job market heats up and skilled workers begin to have multiple employment options, more companies doing strategic reorganizations will incorporate things they haven’t yet done as part of the layoff process.
“Of course, it’s better late than never, but conducting downsizings in a way
that is sensitive to the needs of both those dismissed and those who remain
is a smart business practice regardless of the economy,” said Swick.
Maybe there is some advice here … let’s just hope you don’t ever have to use it!
