Downsize This!

Large or small, most companies are eventually faced with making adjustments to the size of their workforce. Before proceeding with a layoff plan, make sure that you have considered other alternatives including, immediately eliminating documented poor performers, early retirements, temporarily utilizing shorter work weeks, pay reductions, elimination of temporary and contract workers, restructuring work. If you are unable or unwilling to take these steps and you still need to cut the size of the workforce, following the steps below will help to insure your success:

1. First and foremost, bring in professionals to help because this is really difficult to do correctly. Above all you want to maintain high morale for those who will be staying and avoid costly litigation at all costs.

2. Make sure that management is up to the task. Any manager or supervisor that will be communicating the message (almost all of them) needs preparation in advance of the actual announcement.

3. Establish a fairness council of credible managers representing major functions to resolve any employee relations issues that may arise. HR should be the "owner" of the disputes and carry them to the council for resolution. The HR director should chair the council however it is tough for HR to lead the downsize effort and be the sole decision maker for dispute resolution. That is why a blend of managers from other functions (including HR) seems to work best.

4. Put together a communications team to announce the business decisions that led to downsizing, tackle questions and answers, and aggressively address rumors that develop.

5. Dedicate full time HR resources on the day of the announcement, including security if you suspect foul play (which almost never occurs).

6. Consider hosting a job fair soon after the event for all employees that are displaced. Also, arrange to give all displaced employees outplacement assistance.

7. Communicate frequently. Communicate thoroughly. Communicate what is likely to be on people's minds.

Careful planning and coaching will pay big dividends. As good as employes may feel about their experience with your company, when they lose their job, the thing they will remember most is how they were treated by their boss and HR on the day that they were asked to depart. Treat them like professionals and they will do the same in return.