Downsizing company with heart can pay off later

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Downsizing hourly employees is occurring due to events in the stock market the past few months, and now the phenomenon is showing up at the professional and managerial levels. |ret||ret||tab|

In downsizing, care must be taken to ensure layoffs are conducted as humanely as possible. It's always best to follow the Golden Rule and treat others the way you would want to be treated. In short, maintain the dignity of those laid off. |ret||ret||tab|

Since most recessions last from nine to 11 months, plan on the economy turning around. Do not be shortsighted and damage relationships with cut workers and survivors. Businesses that laid off individuals during the late 1980s were scrambling when the labor shortage began in the 1990s. Bad reputations based upon poor reduction practices af-fected the ability to later hire quality laborers. |ret||ret||tab|

If your business is contemplating a layoff, consider alternative solutions first: |ret||ret||tab|

Develop committees to determine suggestions for cost savings. |ret||ret||tab|

Cease filling jobs open due to attrition. |ret||ret||tab|

Require unpaid vacations or reduced work weeks. |ret||ret||tab|

Ask employees and managers to contemplate taking a voluntary reduction in pay during the low sales period. |ret||ret||tab|

Curtail bonus programs. |ret||ret||tab|

Delay effective dates of raises by 90 days to six months. |ret||ret||tab|

To compensate for financial losses, consider offering shares of company stock. |ret||ret||tab|

Be honest if a staff cut is under serious consideration. Do not blindside team members with an abrupt, unexpected proclamation of a downsizing. Share exactly what is happening, what you do and do not know, and the possible impact on the organization. Closed-door meetings provide unproductive intrigue, serve as fuel for the informal grapevine, foster half-truths and unsettle the entire workplace. |ret||ret||tab|

Do not procrastinate. Make the announcement in person so staff can react and ask questions. Be straightforward, unless responding to an inquiry will release confidential information. |ret||ret||tab|

After the initial meeting, hold regular formal meetings and encourage informal conversations between management and workers. Ensure that jobholders are raising issues and obtaining responses so they will feel more engaged and valued. Address whatever rumors are circulating at the time. |ret||ret||tab|

Perform extensive planning when a decision is reached to reduce the work force. |ret||ret||tab|

Give as much notice as possible. Provide outplacement services to make the transition easier and faster, as well as decrease unemployment contributions and the chances of litigation from embittered employees. Furnish stock options or provide cash to offset COBRA costs. Offer bonuses for promises to return to work when the economy changes. |ret||ret||tab|

Offer survivors retention bonuses tied to achieving goals to encourage high productivity and decrease undesirable turnover. |ret||ret||tab|

It is not uncommon for survivors to acquire a negative attitude toward many aspects of the company. Combat this effect by conducting meetings often to share the state of the organization. |ret||ret||tab|

Proper planning and communication during uncertain periods are definitely the keys to ensure that survivors do not jump ship and that laid-off jobholders return when sales pick back up. |ret||ret||tab|

(Lynne Haggerman is president/ owner of Haggerman & Associates, a retained search, outplacement, management training, and human re-sources consulting firm.)[[In-content Ad]]