How to Manage Downsizing and Layoffs

How to Manage Downsizing and Layoffs

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Session ObjectivesYou will be able to:• Recognize the full impact of downsizing and

layoffs• Understand the legal implications• Help both laid-off workers and remaining

employees cope with the situation• Rebuild your team to face new challenges

and opportunities


What You Need to Know•Workforce reduction policies and procedures• The effects of downsizing and layoffs • How to minimize the negative impact of

layoffs• How to help restore confidence and trust•Why it’s important to focus on future plans

and career development• How to redesign work and reorganize your

department to meet future challenges


Impact of DownsizingAnd Layoffs• Laid-off employees• Their families• Employees who remain


Impact of DownsizingAnd Layoffs (cont.)

• Managers and supervisors• The organization• The community


Legal Requirements:Notice of Mass Layoffs • WARN• Notice requirements• Union and nonunion

employees• Exemptions


Legal Requirements:Discrimination • Rely on objective, business-related criteria• Document selection criteria for each

employee• Follow established seniority systems


Benefits and Services For Laid-Off Workers • Severance packages• Vacation pay• Health insurance • Outplacement service• Opportunities for future

rehire


Communication with Laid-Off Workers • Layoff plans• Layoff schedule• Reason for layoffs• Information vs. rumors• Honesty


Communication with Laid-Off Workers (cont.) • Respect• Tact• Empathy• Support• Detachment


Managing Survivors • Stress• Guilt• Resentment• Concern


The Loss Response • Uncertainty and

anxiety• Denial and isolation• Anger


The Loss Response (cont.) • Survival response• Depression• Acceptance


Coping with the Upheaval • Do you understand the

information that has been presented so far?


Maintaining Morale EarlyIn the Change Process• Visibility and availability• Closure• Patience


Maintaining Morale EarlyIn the Change Process (cont.)

• Open communication• Respect• Discretion


Rebuilding the Team • Group meetings• Information• Planning• Standards


Focusing on the Future • Vision• Renewed commitment• Shared mission


Career Development • Retention of key

personnel• Individual needs and

potential• New directions• New place in the

organization


Collaborative Work Redesign • Employee involvement• Empowerment• Increased

understanding of the organization• Greater commitment • Productivity and quality• Time frame


Organizing Assignments With Morale in Mind • Performance standards• Short-term goals• Positive reinforcement• Roles and status• Rewards and recognition


Recovery and Renewal • Do you understand the

information presented in the previous slides?


Key Points to Remember • Periods of downsizing and layoffs are

difficult for everyone• You play a critical role in helping both laid-

off workers and remaining employees cope• Your leadership is also crucial in rebuilding

your team and the organization to face new challenges and opportunities

Documents

How to Manage Downsizing and Layoffs