Downsizing - Some best practices
What to do to “lessen” the impact:
1. Handle the situation with sensitivity. Communicate personally and explain the business situation honestly.
2. Provide employees with information regarding their eligibility for unemployment insurance.
3. Communicate – communicate – communicate…
a. As soon as possible (to the general audience and to those affected.
b. Openly and as honestly as possible
c. Tell those who will stay what the future ‘plan’ is to correct the situation
4. Prepare managers with information and a communication strategy for their role with their teams. Make a “script” for them to follow so the message is consistent. Provide the managers lay off packages to give each of their employees.
5. Offer a period of severance pay to assist these employees in a transition to a new job
6. If at all possible, offer an outplacement service to the employees being let go…this will buy you tremendous good will with them and the employees who stay. You can get some very good assistance for as little as $500. Per employee.
7. Don’t forget the employees who are staying. This is your opportunity to show them you are concerned about them as well as those who are departing. As a result of the downsizing, they will work harder and will have lost their friends. Let them know you appreciate their hard work and