Have you been affected by downsizing in your organisation during the economic downturn?

The after-effects of downsizing in a company can last for years, as you try to encourage the people who stay to commit their loyalty to the future benefit of the business.

But we’ve found in our research that many companies spend a disproportionate time on helping the people laid off and less real-time on the people who will be left, and that may store up difficulties for the future.

When you manage downsizing ineffectively, there’s a danger that a downward spiral will be set up, which can be damaging to the morale and performance of the whole company.

So you need to take action when downsizing occurs, rather than leave it until problems arise. How can you proactively take action with renewal strategies that will help you look forward rather than back when this situation arises?

1. You must be proactive in your management stance, especially in the time period just after the change has occurred. Your action or otherwise at this point will create either an atmosphere of hope or one of despair. This should be a time when you offer your skills and communication to the long-term future of the business, by clarifying expectations, supporting team members and rebuilding trust. You need to communicate direction, vision, mission, strategies, priorities, commitment, objectives and goals for the future. Without these, the people who stay with you after the downsizing will still be fearful of the risks ahead.

2. Your prime attention should be on supporting the people who stay. If you are using outside help to assist in the downsizing operation, most attention, quite rightly, will be on the staff whose jobs have disappeared. However, enlist the help of the agencies you are using to create firm foundations for growth in the people who will be staying with you.

3. Think of the future now with a long-term perspective. One-off meetings to reassure staff, or one-hit training courses, will not offer the necessary support that people need for long-term safety and security. Put yourself in your staff’s shoes…what reassurance would you need to confirm that your future job is safe and that your role is more important than ever to the company’s successful future?

Remember that the business may have been on a downward trend for some time, and it may take a long time to get confidence back after a cut-back. Positive, proactive action on your part will play an important role in re-establishing trust in the company and its future. You may need, with your management team, to re-assess the strategies that your business uses to go to market in the future.

Ideally, the time taken to reassess your future operational needs should be as short as possible, so you have the continued support of your team members and colleagues to take the company forward during the difficult rebuilding time.

By spending time thinking about the needs of the people working with you in the future, and how to manage performance, you give yourself a good chance of rebuilding towards a successful outcome.

Thanks again

Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”

As the economy struggles more and more employers are  looking to downsize their workforce in order to cut back on costs. They figure that getting rid of employees is the best way to save money and are thinking about the present – where business is dwindling.

But what happens when business picks back up again? Will you have the workforce you need and – most important – will you be able to find the same high-quality help you let go just months earlier?

As a leader and manager you’ll be partially responsible for determining if layoffs are necessary and, if so, who has to go. I don’t know about you, but that’s not a situation I’d enjoy being in.

Instead you need to take some time to think about whether or not layoffs are really the answer to your problem. Start by projecting your future level of business. Are things progressively getting worse? Do you see a chance or opportunity for improvement on the horizon?

There are quite a number of options, aside from downsizing, that can help organisations to cut costs. They include:

• Reducing the hours of every individual within the organsiation or team.
• Reduce income. This sounds harsh but right now more people are happy to have a job and are less worried about seeing a decrease in pay. That’s not to say they’ll welcome it but the response may not be as bad as you think.
• Can you put employees on a temporary leave of absence that would allow them to keep their insurance benefits while they are “temporarily” laid off?
• Is it possible to offer voluntary layoffs to employees who may have already considered leaving or who are unhappy but were afraid to quit for financial or personal reasons?

You’ll be suprised at the number of options you really have when it comes to cutting costs without getting rid of your key employees. You might even want to ask your employees to brainstorm with you one day. Perhaps if they feel as though they were able to participate in the process they won’t react as negatively to the actions your organisation takes. It’s your job, especially as one in a leadership role, to make sure you’re making the right decision.

Thanks again,

Sean

Sean McPheat
Managing Director
MTD Management Training

Click below for a:
FREE email course “Improve Your Management Skills”