Job cuts are currently a hot topic in many companies. This poses a major challenge for many managers, who often had little or no experience with this issue in the past.
How can we handle this issue effectively? What does effective handling mean in the context of staff reductions? Is it even feasible? The clear answer is yes, it is!
When staff reductions take place, it is never easy and puts strain on the entire organization—managers, employees, and even those who remain in the organization. Nevertheless, there are countless ways to make such organizational changes work well for everyone involved.
The principle that should always apply here is "if it has to be done, please do it in a HUMANE, FAIR, and TRANSPARENT manner."
Careful preparation and good support throughout the entire process are essential. This starts with defining specific goals and planning costs, scheduling, involving managers and committees, holding truly productive discussions with those affected, planning general communication, defining conditions, implementation, follow-up, and so on. In detail:
1. Specific goal definition and cost planning
- Is there a concrete plan for what goal will be achieved with this measure? What exactly is the business rationale behind it?
- How much will the measure save in the long term? Is it worth the "unrest"?
- Can the savings target alternatively be achieved by reducing material costs?
- How much does the measure cost?
- So what is the bottom line in terms of the long-term contribution to earnings that makes it worthwhile to tackle the process?
2. Schedule
- Is there a specific schedule for the measure that takes all steps (even small ones) into account?
- Is the schedule realistic? (Are disruptions to the process taken into account?)
3. Involvement of committees and executives
- At what point should (must!) committees be informed and involved? This is a question of striking a balance between involving them at an early stage and, at the same time, sensibly minimizing the number of participants during the preliminary considerations of the actual measures.
- At what point are managers informed and involved?
- How are managers prepared for the difficult one-on-one meetings in which layoffs are announced?
- How can they be empowered to conduct effective offboarding discussions in the future, together with People & Culture?
4. Communication planning
- When will employees be informed (and how)?
- When does external communication take place?
- How often do I have to repeat, supplement, or clarify the message?
5. Definition/negotiation of terms and conditions
- Negotiating terms and conditions with employee representatives
- Creating socially acceptable, fair solutions
... Does this all sound completely obvious? However, it rarely happens this way. And this is really just the absolute BASICS.
The BIGGEST GOALfor a successful implementation should always be that even employees who have left the company due to job cuts continue to think positively about the organization and speak positively about it in public.
Furthermore, it can be considered a success if the remaining employees have found their place in the new organizational structure and continue to work happily, productively, and long-term for the company.
THIS ATTITUDE, combined with the right steps, makes the whole thing a success.
It is therefore not only important to consider the most important procedural issues, but also HOW you make the whole process HUMANE, FAIR, and TRANSPARENT. From the first to the last interaction. This requires courage, a great deal of tact, and the confidence to do the right thing overall. We are happy to support you in this!
About the author:
Our author has been working in various positions in the field of HR for more than 25 years. Most recently, he spent more than 15 years supporting numerous projects involving ongoing staff reductions in the publishing industry from an HR perspective, gaining a wealth of experience in the process.
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