Title: The Tough Part of Downsizing: How to say what you don
1The Tough Part of Downsizing How to say what
you dont want to say to people who dont want
to hear it
- Ethel Williams
- School of Public Administration
- University of Nebraska-Omaha
2Background
3Downsizing
- What is Downsizing?
- Downsizing - process of reducing the number of
employees within an organization by eliminating
jobs. - Downsizing doesnt guarantee improvements or cost
savings. - It can have a devastating impact on employee
morale - From the perspective of those affected,
downsizing is a constellation of stressors
related to workforce reductions which require
processes of coping and adaptation.
4Employee Reactions To Recession2008 (EASNA
Survey)
5Whats Wrong With This Picture?
6- http//www.youtube.com/watch?v9sCAaFQnBqU
- http//www.youtube.com/watch?v69tFfdNTNg4
7There is no perfect way to handle a layoff that
feels right or goes well for everyone
involved.
8Faulty Assumptions
- Everyone affected by layoffs will react
dramatically - No one affected will over react
- Leaders will handle the layoffs just fine because
they are leaders - Once we get past the layoff, things will return
to normal - We only need to worry about what is happening
inside the organization walls
9What happens to the organization?
- Employees can turn into headcounts where there is
a decreased emphasis on understanding the
personal impact of layoffs and change - Stress typically increases in response to
restructuring or increased workload - The work environment is marked by fear of job
loss and paranoia (both real and imagined) - The focus on employee engagement can change to
just be glad you have a job - Resources shift away from softer people issues
like diversity, learning, safety and instead
focus on economic or business outcomes
10The impact on surviving employees
- Threat of job loss can increase the risk of
workplace accidents as surviving employees show
less concern for safety in order to meet
production standards - (2001 Journal of Occupational Health)
- Increased physical complaints, stress, substance
abuse, and domestic/social problems result in
increased healthcare utilization - Crime, workplace theft, violence, and suicide
rates tend to increase
11THE SEPARATION PROCESS
12HR Challenges in Downsizing
- What are fair and effective HR policies for
separations, and downsizing? - How can legal issues be minimized in separations?
13Prepare for Downsizing
- Communication is key
- Give as much warning as possible for layoffs
- Announcement of layoff(s) must be managed
- Group meeting-individual meetings
- Individual meetings-group mee4ting
- Give facts - why and how of lay off
- Determine where to hold the meeting
14Dont Fire/Layoff Impersonally
15Prepare for Downsizing Meetings
- Know organization policies and benefits
- Determine if EAP counselors should be on site
- Determine if security should be present
- Determine who will give notice and when
- Consider notice given by higher level manager
- Followed by meeting with immediate manager
- Determine when notice is to be given
- Late in the day so employee(s) can leave
- Early in the morning before employees arrive
- Early in the week so supports can be accessed
16In the Process of Separation
- Use a private office
- Sit down one-on-one with the individual
- Be sure the employee hears about his or her
termination from a manager, not a colleague. - Be clear
- Dont leave room for confusion.
- Put everything in writing
- Provide written explanation of severance
benefits. - Allow no time for debate
- Tell the individual in the first sentence he or
she is terminated or laid off. - Complete a firing session within 15 minutes.
17In the Process of Separation
- Maintain the integrity of all
- Dont make personal comments keep the
conversation professional. - Dont rush the employee off-site unless security
is really an issue. - Provide outplacement services away from the
organization. - Express appreciation for what the employee has
contributed, if appropriate. - Dont fire or lay people off on significant
dates, like the twenty-fifth anniversary of their
employment or the day their mother died. - Dont fire employees when they are on vacation or
have just returned.
18What to say in Downsizing
- Get to the point quickly
- Avoid words like fire and terminate
- Do not argue or justify
- Be prepared to listen sensitively but limit
discussion- refer to EAP
19What to say in Downsizing
- Be honest
- Tell the employee why he or she is being laid
off, even if it's for poor performance. You're
not doing the employee or yourself any favors by
concealing the reason. You may cushion the poor
performance assessment in a variety of ways, but
the truth must be told. - For any layoffs due to poor performance, a recent
record of poor performance reviews will support
your decision and justify it to the employee. It
may also be used as evidence if a wrongful
dismissal suit is filed against the employer.
20What to say in Downsizing
- Be compassionate
- Being laid off can be painful. Show the
terminated employee some compassion and
understanding. - If your agency has the capability, provide
outplacement services or job counseling to help
cushion the blow. - Keep the employee's ego in mind - it may need a
hefty boost at this time, and you can provide it
by praising previous accomplishments.
21Completing the Downsizing Meeting
- Listen and acknowledge concerns
- Remember this is not about you
- Stop giving information- the employee is not
hearing you - Have tissues available
- Offer to end the meeting or give the employee a
moment to pull themselves together
22Completing the Downsizing Meeting
- Listen intently by concentrating on what the
person is saying - Dont interrupt- focus on the employee, not what
you plan to say - Be patient hear the employee out in the limited
amount of time allotted
23Completing the Downsizing Meeting
- Give employee(s) written materials
- Thank the employee for service and commitment to
the organization - Discuss reference for future employment
24Do Not - Checklist
- Do Not
- Skip good byes
- Hide bad news
- Disappear
- Play favorites
25Preparing for a worse case scenario
26Recognizing the Angry/Threatening Employee
- Early identification is key
- Employees who may respond with potential violence
are those who - Continually express discontent
- Display unmanageable incidents of anger
- Demonstrate verbal/non-verbal threats or
intimidation - Verbalize plan to hurt self or others
- Manifest an inability to take criticism
- Express feelings of being victimized
27Responding to the Angry/Threatening Employee
- Have security available before the meeting
- Project calmness
- Acknowledge the persons feelings
- Establish ground rules if unreasonable behavior
persists - Use delaying tactics
- Leave the room
- Offer water
28Responding to the Angry/Threatening Employee
- Sit so that you cannot be blocked to access the
exit - Accept criticism of the organization or self in a
positive way - Be an empathetic listener
- Maintain a relaxed yet attentive posture
29Responding to the Angry/Threatening Employee
- Do NOT
- Use styles of communication such as condescension
or apathy - Pose in challenging stances such as standing with
arms crossed or at hips - Challenge or threaten the individual(s)
- Attempt to bargain with the threatening
individual(s) - Make false statements or promises you cannot keep
30Responding to the Remaining Employees
- Communicate, communicate, communicate
- Recognize, support and reward good performance
- Give frequent feedback on impending changes
- Provide a realistic picture of the organizations
future - Listen and show empathy
- Ask employees their opinion about things
31Responding to the Remaining Employees
- Acknowledge the right direction and right
attitudes, do not wait until a project is
completed - Celebrate small successes
- Make training/development opportunities available
- Offer group for survivors to share feelings,
concerns about the past - Refer employees to the EAP
- Encourage and coach
32Finally