1. Tough Times: Re-engaging Survivors after Layoffs Prepared for: River Valley Human Resource Association February 12, 2009 Jonathan Sheff MSW/MPH MKS Performance Solutions LLC 18 N. Main Street Concord NH 03301 www.mksperformancesolutions.com 888 657 7373

2. Agenda Overview Risk Issues Strategies for Managing Transitions and Re-engaging Survivors External Resources

3. Overview Strategic Mind Set – Employees as Costs to be Cut or Assets to be Conserved and Developed – Short-term vs. long-term

4. Direct Costs of Layoffs Severance pay Accrued pay Unemployment benefits Outplacement Pension and Benefit Payouts Administrative processing costs Rehiring Increased turnover

5. Layoffs Impact on Turnover Average rate for companies with no layoffs: 10.4% % of Workforce Laid OffExpected Turnover Rate.5%13% 2%14.1% 5%14.9% 10%15.5%

6. Indirect Costs of Layoffs Potential lawsuits Loss of personal relationship with customers Loss of institutional memory and trust in management Potential threats or acts of sabotage or violence Heightened insecurity; reduced productivity Low morale; risk-averse survivors Future new hire recruitment

7. Potential At-Risk Employees or Situations History of aggressive or threatening behavior History of depression, substance abuse Prior conflicts with management Major financial/personal stress Inexperience with finding work

8. Tone and Content of Termination Leading with the Heart, Following with the Head (Emotional and Cognitive) Fairness Truthfulness Dignity and Respect Adopt a “helping” relationship

9. Myths and Facts of Layoffs* Myth: There are no adverse effects on the employees who remain after a layoff. Fact: Downsizing has adverse effects on the morale, workload, and commitment of survivors. Myth: Downsized employees are sympathetic to the reasons for layoffs and don’t personalize the experience. Fact: Downsizing is traumatic and taken personally. Myth: Stress-related medical disorders are more likely for those laid off than for those who remain. Fact: Survivors are just as likely to suffer adverse health consequences. * From Responsible Restructuring by Wayne Cascio

10. Understanding Survivor Syndrome * Individual Reactions – Fear, insecurity, uncertainty – Frustration, resentment, anger – Sadness, depression, guilt – Unfairness, betrayal, distrust * Healing the Wounds, David Noer

11. Understanding Survivor Syndrome Workplace impact – Reduced risk-taking – Lowered productivity/morale – Increased stress, absenteeism, turnover – Unquenchable thirst for information – Blaming others – Denial

12. Transition Management Model Endings – Disengagement – Disenchantment – Disidentification – Disorientation Neutral Zone/Roller Coaster – Disorientation – Disintegration – Discovery New Beginnings/Re-engagement – New Vision – Recommitment

13. Effective Strategies for Managing Transition and Re-engaging Survivors Over-communicate in multiple modes Tell the truth Seek advice Listen vs. giving advice Offer support and not solutions Be clear about expectations for performance

14. Effective Strategies for Managing Transitions and Re-engaging Survivors Encourage a feeling of “we’re all in this together” Visible things to share the pain Discuss phases of Transition Accept feelings in yourself and in people you manage Allow for venting/grieving

15. Effective Strategies for Managing Transitions and Re-engaging Survivors Have rituals Give survivors a reason to stay Articulate a vision for the future

16. External Resources Legal Human Resources Consultants Outplacement Comprehensive EAP NH Department of Labor NH Dept. of Employment Security