Managing Employees in a Downsized Environment
Downsizing employees is the process of reducing the scale of work force to cut losses due to redundancy (Baumol, Blinder, and Wolff 1). This is an unavoidable step for companies in times of economic crisis. However, managers should conduct such a process in a humane way that preserves the reputation of the company and allows the affected employees to cope beyond the period.
The process of downsizing should be steady and methodical. The manager should organize for prior communication with the affected employees thus giving them time to adjust and air their opinions.
The managers should also reflect on the legal procedures and strive to exceed them by giving preference to the affected employee’s welfare. The application of company’s policies for downsizing should be fair and acceptable to both the company and the employees. The necessity of downsizing should be communicated to all other stakeholders and their opinions taken into consideration.
In most cases of downsizing, particular groups of vulnerable employees are immensely affected, upon comparisons with their colleagues. Elderly employees and physically challenged become the greatest casualties in the process (Business in the Community, Briefing Note). The management should therefore balance the diversity of the employees so as not to disfavor the disadvantaged.
Apart from this, the management should initiate sustenance services for the affected employees. This can be in form of new job searches, counseling and trainings on coping skills. For instance, Woolworths arranged with their partners who where purchasing their premises to absorb some of their outgoing staff (Business in the Community, Briefing Note).
The management should also maintain contact with the outgoing staff with the aim of re-employing them when conditions become better. The company can choose to offer sabbatical leaves instead of laying off. For instance General Motors opted to keep away some of their staff for a period of nine months from January to September 2009. During this time, the employees received a third of their monthly salary (Business in the Community, Briefing Note).
Training for Downsized Employees Staff
Downsized employees need both economical and psychological support (Business in the Community, Briefing Note). To meet the needs, the management can offer-counseling sessions aimed at handling mental health and stress related factors. They can also initiate trainings that widen skills in the employees that will suite them for their next job. Moreover, the management can search for employment on behalf of their retrenched staff and link them with other employers.
Benefits of Acceptable Downsizing Strategies
The way a firm carries out the downsizing process is significant to its reputation. If an organization carelessly dismisses employees without prior considerations and contingency measures, it may easily lose favor with the community. Customer devotion and preservation is subject to distortion. This reputation may be very hard to regain, and the firm may fail to attract decidedly practiced staff in the future.
During downsizing, the firm loses a great deal of the employees that it had invested in training. If the process is conducted in a non-humane manner, the outgoing employees may not return even when they are needed back after the crisis is over. The firm can only call back some as consultants hence their services will be hired at a more expensive cost. The remaining employees may also feel stressed and lose morale for work hence diminishing output.
Research carried out by BITC/Ipsos MORI revealed that entities that carried out responsible downsizing improved on financial gains without losing reputation (Gebler). This proves that responsible downsizing has benefits that goes beyond the welfare of the outgoing employees and profits the firm.
Conclusion
Downsizing is a challenging procedure for both the management and the employees. However, it is an effective weapon for business survival in times of economic meltdown. Nevertheless, it should be done in a way that protects the affected employees’ well being and the organizations reputation.
Works Cited
Baumol, William. Blinder, Allan. & Wolff, Edward. Downsizing in America: reality, causes, and consequences. New York, NY: Russell Sage Foundation, 2005. Print.
Business in the Community, Briefing Note. Responsibility in recession: A checklist for restructuring and downsizing. 2009. Web.
Gebler, David. Ethical downsizing, protecting your reputation during layoffs. 2002. Web.