Downsizing with DignityWebinar Presentation

1. TERMS 1. TERMS

2. REASONS 2. REASONS

3. ALTERNATIVES 3. ALTERNATIVES

4. METHODS 4. METHODS

5. AFTERWARDS 5. AFTERWARDS

R.A.M.

A.T.(Define)

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

SHOCKDENIAL

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

SHOCKDENIAL

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!