The Tough Part of Downsizing: How to say what you don

1
The 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

2
Background
3
Downsizing

• 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.

4
Employee Reactions To Recession2008 (EASNA
Survey)
5
Whats Wrong With This Picture?
6

• http//www.youtube.com/watch?v9sCAaFQnBqU
• http//www.youtube.com/watch?v69tFfdNTNg4

7
There is no perfect way to handle a layoff that
feels right or goes well for everyone
involved.
8
Faulty 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

9
What 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

10
The 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

11
THE SEPARATION PROCESS
12
HR Challenges in Downsizing

• What are fair and effective HR policies for
  separations, and downsizing?
• How can legal issues be minimized in separations?

13
Prepare 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

14
Dont Fire/Layoff Impersonally
15
Prepare 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

16
In 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.

17
In 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.

18
What 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

19
What 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. 

20
What 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.

21
Completing 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

22
Completing 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

23
Completing the Downsizing Meeting

• Give employee(s) written materials
• Thank the employee for service and commitment to
  the organization
• Discuss reference for future employment

24
Do Not - Checklist

• Do Not
• Skip good byes
• Hide bad news
• Disappear
• Play favorites

25
Preparing for a worse case scenario
26
Recognizing 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

27
Responding 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

28
Responding 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

29
Responding 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

30
Responding 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

31
Responding 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

32
Finally

• Be calm and honest