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Downsizing with Dignity Webinar Presentation
1. TERMS 2. REASONS 3. ALTERNATIVES 4. METHODS 5. AFTERWARDS R.A.A.M.A.T. (Define) D.D.
Terminology Downsizing Rightsizing Layoffs Workforce reduction Delayering Restructuring Upsizing Streamlining Outsourcing Redundancy elimination
Reasons Business losing revenue Reduce overhead costs Automation Outsourcing functions Discontinue Services or Products
Alternatives Increase productivity and profitability Reduce workweek Reduce benefits Freeze promotions and raises Job Sharing Voluntary leave of absence Voluntary retirements and severance packages Attrition Outsource functions Overtime to increase targets (output) Reduce salaries Ask Employees for their ideas!
Process Gather information Review the info Decide on the method Create a new org chart Create the new job descriptions Implementation
Methods Last in First out Performance based Attrition Early Retirement (Buyout incentives)
Implementing Notifications Conducting Meetings Logistics Communication Process Culture External Scripts Debriefing Security
Cycle Acceptance SHOCK DENIAL ANGER DEPRESSION EMOTIONS
Afterwards Transition assistance Counseling (EAP) Access to Internet Resume assistance Time-off to interview
What to consider Relationships –Customers –Remaining staff Workload –Who will do the additional work? –What happens if they quit?
What about the Survivors?
Survivor Cycle Acceptance SHOCK DENIAL ANGER DEPRESSION EMOTIONS
Use Care Can you prove the hardship? Define Business Necessity
Legal assistance –Severance and Release agreements –WARN Act (size of the employer) –EE’s on a protected status Leave of absence Workers’ compensation
Things to Consider Age Gender Employment Contracts Employee Handbooks Union Contracts Personnel policies and practices WARN Act (60 days advance notice) Always have Kimstaff review
What are the keys? Communication Compassion
C reate A R espectivful E nvironment Keep their dignity!
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