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