How to Manage Downsizing and Layoffs Session Objectives
How to Manage Downsizing and Layoffs
Session Objectives You 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 © Business & Legal Reports, Inc. 0609
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 © Business & Legal Reports, Inc. 0609
Impact of Downsizing And Layoffs • Laid-off employees • Their families • Employees who remain © Business & Legal Reports, Inc. 0609
Impact of Downsizing And Layoffs (cont. ) • Managers and supervisors • The organization • The community © Business & Legal Reports, Inc. 0609
Legal Requirements: Notice of Mass Layoffs • WARN • Notice requirements • Union and nonunion employees • Exemptions © Business & Legal Reports, Inc. 0609
Legal Requirements: Discrimination • Rely on objective, business-related criteria • Document selection criteria for each employee • Follow established seniority systems © Business & Legal Reports, Inc. 0609
Benefits and Services For Laid-Off Workers • Severance packages • Vacation pay • Health insurance • Outplacement service • Opportunities for future rehire © Business & Legal Reports, Inc. 0609
Communication with Laid-Off Workers • Layoff plans • Layoff schedule • Reason for layoffs • Information vs. rumors • Honesty © Business & Legal Reports, Inc. 0609
Communication with Laid-Off Workers (cont. ) • Respect • Tact • Empathy • Support • Detachment © Business & Legal Reports, Inc. 0609
Managing Survivors • Stress • Guilt • Resentment • Concern © Business & Legal Reports, Inc. 0609
The Loss Response • Uncertainty and anxiety • Denial and isolation • Anger © Business & Legal Reports, Inc. 0609
The Loss Response (cont. ) • Survival response • Depression • Acceptance © Business & Legal Reports, Inc. 0609
Coping with the Upheaval • Do you understand the information that has been presented so far? © Business & Legal Reports, Inc. 0609
Maintaining Morale Early In the Change Process • Visibility and availability • Closure • Patience © Business & Legal Reports, Inc. 0609
Maintaining Morale Early In the Change Process (cont. ) • Open communication • Respect • Discretion © Business & Legal Reports, Inc. 0609
Rebuilding the Team • Group meetings • Information • Planning • Standards © Business & Legal Reports, Inc. 0609
Focusing on the Future • Vision • Renewed commitment • Shared mission © Business & Legal Reports, Inc. 0609
Career Development • Retention of key personnel • Individual needs and potential • New directions • New place in the organization © Business & Legal Reports, Inc. 0609
Collaborative Work Redesign • Employee involvement • Empowerment • Increased understanding of the organization • Greater commitment • Productivity and quality • Time frame © Business & Legal Reports, Inc. 0609
Organizing Assignments With Morale in Mind • Performance standards • Short-term goals • Positive reinforcement • Roles and status • Rewards and recognition © Business & Legal Reports, Inc. 0609
Recovery and Renewal • Do you understand the information presented in the previous slides? © Business & Legal Reports, Inc. 0609
Key Points to Remember • Periods of downsizing and layoffs are difficult for everyone • You play a critical role in helping both laidoff workers and remaining employees cope • Your leadership is also crucial in rebuilding your team and the organization to face new challenges and opportunities © Business & Legal Reports, Inc. 0609
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