Nov

Downsizing strategies that work.

By admin

Corporate restructuring and downsizing is happening across the globe and the surviving employees are left inundated to cover the extra load of those let go. It is often the case that companies begin downsizing without specific strategies in place to handle the difficult tasks of reallocating workload to maintain productivity without stressing the decreased work force.

The downsizing from massive job-cuts during the 80’s and 90’s may be nothing in comparison to what we have seen happening today and through the next 6 months. The recessionary times in the past two decades was not nearly as bad as what we are faced with today. Studies of the US companies that downsized in the past found that:

Most companies that downsized had been financially under-performing (as compared to the industry average) prior to doing so.
On average, downsizing did not improve financial performance (it neither went up nor down).
There was a short-term gain in productivity, but this was not sustained beyond the first year. (Productivity was measured as total sales divided by the number of employees).

As we look to the future and re-establish a base to move forward it will be important that companies who recently downsized make sure that they have a strategy in place moving forward. You can’t just throw work of a fired employee on the desks of those left, this will inevitably create tremendous stress and resentment and decrease productivity within your organization.

As important is exit-interviews are when downsizing so is restructuring interviews to establish where those left skills and ambitions are for your growth and goals. A person who has no moments of success and accomplishment as they get more and more handed to them will begin to become demotivated and time will be wasted on just wondering if they can ever get through the work they have been loaded up with.

It will be important that balance is maintained and that the team reassembled after the downsize works together to accomplish the tasks and workload that at one time several people were available to handle.

Keep in mind that as the job of 2 or 3 becomes 1 that good record keeping for the workload re-balancing is important and lowering expectations for how quickly these tasks can get done will also be important. Setting up status meetings and prioritizing and receiving input from your staff will help.

I suggest also that companies take the time to congratulate even the smallest of tasks that get done. If an employee shows you everything they did and you jump back with all that did not get done instead of with a “great job” and giving a little time before you help them prioritize the workload so that the things your need done first are on top. Often people who have a heavy workload will do all the easy things first to reduce the overwhelming list, this may not be in the best interest of your company but personally it tends to be a motivating strategy for the employee.

I also suggest that upper management take the time to recognize and give credit to everyone that helps achieve the companies goals. These are not the times for self promotion by discounting the efforts of an entire team, don’t forget how important even the janitor is to your organization.

Emotions run high after downsizing many employees left behind feel guilty and looking around their office and seeing their friends and colleagues gone can bring a host of personal feelings. Taking the time to make sure everyone is getting what they need personally and professionally and have the support they need to effectively manage the extra work needing to get done will ensure your companies success post downsizing.