The Importance of Strategy During Layoffs
Posted on Mon, Nov 23, 2009
By Cindy Lu
Nobody wants to do it... Yes - I am talking about layoffs. When repeated and unplanned downsizing occurs, an organization's effectiveness can come crumbling down. Done with careful planning and the proper experts involved, downsizing can be an organizational lifesaver and an assistant to building your brand. The means by which you treat your transitioning employees truly matters - both to them and the employees that remain. I would like to offer insight on how you can preserve your organization's intellectual capital, maintain morale and retain your most valued asset - high performing dedicated employees, while downsizing.
We all have big changes in our lives that are more or less a second chance.
- Harrison Ford.
What every transitioning employee needs is a second chance to prove that they are valuable - and the best way to do this is show them support following their layoff - helping them find, prepare for and interview for their next career opportunity. In showing support of transitioning employees an employer can effectively build loyalty while branding themselves as a company that cares. As an added benefit to your budget, it can help prevent costly COBRA and unemployment claims. This is where having outside help can really make the difference, regardless of whether or not you have a solid Human Resources Department. Outplacement firms vary in their approach, offerings and of course, cost and should be thoroughly evaluated. The following can be used when evaluating what Outplacement can do - remember this is not just about helping employees move on - it is about how well you will position your firm to the market moving forward. Some of the things you should consider:
• Your outplacement firm should require to be a fully participating member of your strategic planning team
• They should be valued advisors providing critical reality checks during your difficult times
• You should expect honest, real-world answers to your questions - even if they aren't what you want to hear
• They should know or get to know your company well - understanding history, goals, corporate culture, values and employees
• You should plan on working with them as if they are an extension of your team - and that the relationship will be a long term agreement
• Sometimes the employees you displace are not the "A" players you had hoped - outplacement firms should be aware of this and can many times turn those missed opportunities into a new chance for the displaced employee to succeed in a different environment
• They should understand that the relationship is really 3 sided - working with your internal team, the out-placed employees and the company brand
• Plan on disagreeing with your outplacement provider, but also plan on trusting them... they are the experts
Bottom line - outplacement can be a small investment that will give the separating employee an added advantage as they look for their next job or career. I have also included some top reasons why allocating dollars to outplacement will position you, your company and the separating employees for success.
1. Outplacement reduces the cost of separation in the form of soft (employee morale) and hard (potential litigation) costs.
2. The current job market is difficult at best - outplacement helps give candidates a much needed edge in the competition.
3. Today's outplacement programs will cater to the EMPLOYEE needs - and will be highly customized to each individual.
4. Outplacement can protect a company's corporate image as wel as the employment brand when implemented with thoughtfulness.
5. Outplacement helps employees move on, and do so quickly - reducing time spent focusing on perceived negativity with the former employer.
6. Providing outplacement helps employees and managers who are "left behind" feel better about the situation.