Downsizing is a reality in today’s economy. Many businesses have had to lay off employees. Financially cut backs and layoffs may be necessary. However, they often lead to morale issues and reduced productivity.
Understanding how employees will react and what support they need to cope can help minimize the negative effect of downsizing. Frequently, management is so focused on dealing with the laid off employees they forget to address the concerns of the others. Here are some ways to reduce the stress and anxiety that grows when a company is downsizing.
Rebuilding Trust Following a Reduction in the Workforce
The employees will not have the same level of trust in the company. Layoffs often affect excellent workers, not just the poor workers. The feeling that if you do a good job you will be taken care of no longer exists.
Rebuilding trust is a difficult task. Some managers will want to reassure the current employees that their jobs are not at risk. However, making promises that can not be kept will only reinforce the lack of trust. Instead be honest. When employees feel they are getting the whole picture they will be more at ease.
Anxiety Over Job Security
Most employees will suffer some anxiety when their employer has been dealing with laying off staff. Under the circumstances this is a normal reaction. Again, being as honest as possible with employees about future staffing plans can help.
If future layoffs are planned keeping people waiting can cause disruptions to the work flow. The sooner layoffs can be done; the sooner people can get back to focusing on their jobs. Try not to delay the process.
Company Downsizing Can Lead to Feelings of Guilt and Anger
Many employees will have feelings of guilt after watching their colleagues, and sometimes friends, lose their jobs. Combined with the added stress and anxiety these feelings can easily lead to anger.
Management can not always fix the concerns that the employees have. However, being available to listen and allow the employee a chance to voice their feelings can be a tremendous help. Do not downplay the frustrations the employees are having. They are real, and they will impact the business if they are ignored.
Some employees may have more difficulty coping with the added stress than others. If an individual employee is struggling then they may need counseling to help them through. The HR department can arrange for support through most benefit programs.
Downsizing can have a negative impact on an organization. Reduced morale and job satisfaction will in turn reduce productivity. Although it may be impossible to avoid the stress downsizing can trigger how management responds can ease the burden employees feel. Managers can help by rebuilding trust through open and honest communication and handling layoffs quickly and efficiently. Lastly, being available to listen and support employees who are struggling is critical.
Reference:
Monica Belcourt. Kenneth J. McBey. Strategic Human Resource Planning. Toronto. Nelson. 2004.
Monic Beauregard. Maureen Fitzgerald. Hiring, Managing and Keeping the Best. Toronto. McGraw-Hill Ryerson. 2000.
Suzanne McIntyre - Suzanne McIntyre is enjoying a new and exciting career as a freelance writer. After a long career and time as a stay at home Mom she ...
