Explain Openly the Business Reasons for the Change

When the downsizing plan is announced, the important matters to emphasize and clarify are the business reasons for making the change and the fairness features of the plan for the employees.

There has been enough downsizing in recent years that it has become an accepted fact of life to most people. It has become recognized that in the evolving intensity of global competition, companies must often make major cost reduction efforts to beat or stay even with competitors. The real reasons for the decision to lessen staff can be to reduce a downward profit trend, to meet known cost levels of competitors, to generate cash for an important new venture, or some other of the many possible business considerations. These business reasons should be explained so that all concerned are made aware of the valid and logical necessity of the downsizing plan. It should be made clear how the downsizing program will make the organization stronger so that departing employees will understand the logic and reasonableness of the effort and remaining employees will feel more secure.

The fairness of the plan structure as explained should include the general terms of a financial package and career assistance for those that will leave, and the benefits of working for a computer service firm for those employees who may be made available for employment with the outsourcing vendor. The plan may give choices to some employees, making it somewhat voluntary, such as having them decide whether to accept a severance package or transfer to some alternative positions.

All of this open discussion of the business reasons and fairness will not eliminate some bitterness and lowering of morale. But done well, it should keep those disadvantages to a minimum.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook


Post a comment