 The Art and Science of Workforce Reduction – Part 2
“Downsizing”, “Rightsizing”, “Smartsizing”… Regardless of the latest create-a-word that attempts to make the unpalatable more appetizing, one thing is certain: Workforce reductions are painful, consuming, expensive, and complicated. It’s my hope that through new thinking we can also learn to call them a thing of the past.
To break the cycle of workforce reduction and get the most out of the exercise, it’s important to realize that there is both an art and a science to them. It’s crucial to take a holistic approach that addresses a series of questions.
For instance:
- How will I target the parts of my organization that should be reduced, and by how much?
- How will I determine if I should shift resources and actually grow in some areas while reducing others?
- How will I get my normal HR duties done, if my resources are dedicated to managing a Reduction In Force (RIF)?
- Should I restructure or redesign my organization while I do this?
- How do I ensure that I’m choosing the right people to stay?
- How do I manage through this process with respect and honor?
- How do I ensure that I’m not adversely impacting any particular demographic group.
- How do I create a plan to communicate effectively to everyone involved
- What role do retention bonuses play during this difficult time?
- How do I avoid this mess in the future?
By taking the time to systematically address these questions, a firm will maximize the effectiveness, impact, and permanence of a reduction in force. Any company about to implement a reduction should be careful to craft a structured and disciplined plan to ensure that:
- reduction decisions are based on business strategies and priorities,
- legal risks are understood through careful adverse impact analysis,
- selection decisions are objective, and based on performance and the skills required,
- impacted employees are treated honorably, and leave with dignity,
- remaining employees feel valued, supported, and prepared to move forward, and
- the cycle of staff growth-reduction-growth-reduction is broken
Workforce reductions are unfortunate for all parties involved. The most important objective is to make the next reduction, the last one. While it’s impossible to fully predict the ebb and flow of business, it is possible to break the cycle of blindly staffing up and reducing down.
The good news: There are specific steps to take before, during, and after a reduction to reduce the likelihood of treading this painful path again.
 |