Downsizing Mistakes
Cutting jobs without figuring out how the work is going
to get done.
Employers often focus on the need to cut costs and underestimate
how much work actually gets done by the people who are being
laid off. The remaining employees get overworked and fall behind
and/or burn out. The situation really doesn’t become clear
until a major problem develops. Take the time to sit down with
employees and decide what work they are going to stop doing.
Putting down the past.
When a business is being reorganized, employers often talk about
how terribly things were done in the past and how everything
will be done much better in the future. This is a slap in the
face to employees. Acknowledge the accomplishments of the past
and give credit to the great work that was done. Talk about
the changes as new opportunities.
Thinking cuts will only be needed once.
Even if you plan to cut back on staff just once, this is a promise
you can’t make. Business changes so quickly these days
that you may have to cut one area of staffing even if you are
growing. You may also find out that the cuts you made the first
time weren’t deep enough.
Offering people an early retirement package and then hiring
them back on a short-term contract during the transition, so
that they are drawing two incomes.
This infuriates the people who stayed on without a retirement
package, who already feel overworked. It is also a waste of
money. If you can’t live without these people, make their
retirement effective when your business dictates its best. If
you can live without these people, say goodbye.
Not explaining the need for the changes.
Employees need to be given the full picture. They need to hear
it and see it several times. They need to have a chance to ask
questions after the news has sunk in. They need to express their
anger and concerns. It takes time for people to take in major
changes in their lives.
Not saying good-bye to the people who are leaving.
Co-workers are going to be uncomfortable. They may avoid
the people who are leaving even if they have worked with them
for a long time. Show some leadership and make it easier for
everyone. Organize a goodbye lunch, a gift, a card. If the ending
isn’t immediate, stop by their office and ask them how
they are doing and if they have any plans yet. Give them a call
and see how they are doing. Let them know if you hear of a job
that might suit them.
