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How to Manage Downsizing and Layoffs

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

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How to Manage Downsizing and Layoffs

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  1. How to Manage Downsizing and Layoffs

  2. 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

  3. 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

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

  5. Impact of DownsizingAnd Layoffs (cont.) • Managers and supervisors • The organization • The community

  6. Legal Requirements:Notice of Mass Layoffs • WARN • Notice requirements • Union and nonunion employees • Exemptions

  7. Legal Requirements:Discrimination • Rely on objective, business-related criteria • Document selection criteria for each employee • Follow established seniority systems

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

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

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

  11. Managing Survivors • Stress • Guilt • Resentment • Concern

  12. The Loss Response • Uncertainty and anxiety • Denial and isolation • Anger

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

  14. Coping with the Upheaval • Do you understand the information that has been presented so far?

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

  16. Maintaining Morale EarlyIn the Change Process (cont.) • Open communication • Respect • Discretion

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

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

  19. Career Development • Retention of key personnel • Individual needs and potential • New directions • New place in the organization

  20. Collaborative Work Redesign • Employee involvement • Empowerment • Increased understanding of the organization • Greater commitment • Productivity and quality • Time frame

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

  22. Recovery and Renewal • Do you understand the information presented in the previous slides?

  23. 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

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