1 Organizational Downsizing for Managers Presented by CIGNA Employee Assistance Program Copyright 2008 CIGNA HealthCare – Confidential & Privileged – Not for Distribution

2 Seminar Goals Know the potential reactions of separated employees, remaining employees and managers during a downsizing, and how best to manage those reactions Learn how to conduct a separation meeting Learn how to support remaining employees, and minimize adverse effects of downsizing on the organization Know how the EAP can help separated employees, remaining employees, and managers

3 Potential Reactions of Separated Employees Shock, disbelief and numbness— “I can’t believe this is happening to me…” Anger—especially in predisposed people Emotional outbursts—tearful to hysterical Relief—“I’m glad this is over and I can get on with things…” continued

4 Potential Reactions of Separated Employees (cont.) Acting out anger in sabotage Increased doctor visits Increase in substance abuse Updating resumes, job hunting, scheduling job interviews on company time

5 Potential Reactions of Managers Fear of employees’ reactions Anxiety over the separation meeting Desire to avoid being the “bearer of bad news” Guilt over being a part of “management”, or the one who made the selections for the reduction- in-force Feeling responsible for employees’ plight, including potential personal, family and/or financial problems Anger, sadness and grief over loss of employees

6 Potential Reactions of Remaining Employees Expect the same general reactions from the “survivors” as from the impacted employees More concern regarding the long-term adjustment reaction Survivor guilt Resistance to new procedures, duties and relationships Complaints about increases in work load

7 Possible Costs to the Company of Above Reactions Lost productivity Lower morale Destruction of company property, stealing, defacement, sabotage Increased medical claims Employee turnover Increased risk of violence

8 Managing the Risks Acknowledge company stressors and crisis of uncertainty to employees Communicate to employees a decisive plan to resolve the problem Announce required organizational changes early Inform employees of availability of benefits and assistance Train managers in managing a downsizing and in violence prevention

9 Support for Remaining Employees Facilitate discussions regarding concerns Implement retention strategies Increase awareness of EAP & work/life services Promote the value of EAP consultation and referrals to managers

10 Benefits of the EAP Confidential Prepaid Available 24 hours a day, 7 days a week Appointment offered within 2 business days Telephonic consultation available Household benefit Child care, senior care, and legal concerns EAP & Work/Life Services are extended 30 days beyond last day of employment

11 EAP Consultation for Managers Balance the needs of employees who have lost their jobs with those who remain on the job Assist individuals to effectively manage their feelings and support each other Understand your own reactions and use the EAP to discuss the challenges of your management responsibilities Discuss need for an on-site EAP counselor strategically during the reorganization

12 Recommitment & Retention Resources Additional EAP Seminars for Managers: Stress Management for Managers Violence in the Workplace Team-building for Managers For information about seminars, or assistance in scheduling, please call: Ext and follow automated prompts

13 Recommitment & Retention Resources EAP Seminars for Employees and Managers: Managing Change Personal Resiliency in Challenging Times Stress and Your Perceptions The Power of Acceptance For information about seminars, or assistance in scheduling, please call: Ext and follow automated prompts

14 Pre-notification Steps Review the business case Discuss team roles and timing Review the step-by-step approach to conducting separation meetings (next slide) Discuss logistics and related challenges Review benefits, outplacement resources, EAP and work/life services Address potential safety and security concerns Rehearse

15 Separation Meeting 1. Put person at ease 2. Set the stage 3. Announce the separation 4. Communicate benefits 5. Listen, and offer support 6. Discuss transition details 7. Introduce outplacement specialist

16 Step One: Put Person at Ease Choose appropriate time and setting. Welcome the individual and make them comfortable. “Joan/John, please come in and have a seat.” Keep small talk brief.

17 Step Two: Set the Stage Set the stage in general terms. Express your concern for the department’s future. Some specifics on the situation will provide a helpful context. For example: “As you know, John/Joan, our company is under a great deal of pressure to improve earnings. We’ve had to rethink what work is essential and how best to accomplish that work.”

18 Step Three: Announce the Separation Plan and rehearse the statement which announces the separation. Define the separation clearly and succinctly. Present the decision as definite and final in a brief statement that may be repeated if necessary. Present reasons in such a way that they can be clearly understood and remembered. Remember to show compassion in what is said, and how it is said.

19 Step Four: Communicate Benefits Explain separation benefits and reemployment assistance. These may include severance pay, some continuing benefits, and outplacement services. A letter outlining the specifics of the separation package is given to the person, who may or may not want to read it right away.

20 Step Five: Listen, and Offer Support Allow time for the individual to react and raise questions. Handle the reaction with patience and understanding, but return to the theme of getting started on the road to reemployment. Express confidence in the person and his or her prospects. “I know this is difficult. I can appreciate how you must be feeling, but I am confident that with the right assistance, you will do fine and will soon be in a good situation.”

21 Step Six: Discuss Transition Details Set a time to meet at a later date to discuss transition of work. This includes: Handing over the employee’s responsibilities to others Personal effects Company property

22 Step Seven: Introduce Outplacement Specialist Give them written information about EAP and outplacement services, so they can read it later Introduce employee to the reemployment consultant/outplacement specialist, as appropriate. “The most important things for you to focus on in the next few days and weeks are your career and taking care of yourself. I want you to come out of this feeling good about yourself and making a good career move. That's why I want you to meet with the reemployment specialist right away."

23 Notify Security and Human Resources if: Acts of physical assault and violence Verbal, physical, or emotional threats Aggressive and intimidating behavior Sabotage, vandalism or theft Behavior endangering the safety of others Violence at home Get the facts—find out what was said or done. Notify company Security and HR. Consult with EAP about options and resources to support the victim and the workplace.