If you’re one of the many business owners that have had to face the hardship of letting employees go as a way to remain viable during the recent economic downturn, you know it is not an easy task to undertake. When it comes down to the task of downsizing, there are steps you can take to make it easier for everyone involved. The need to tighten belts, control your company’s expenses and remain viable may be inevitable and layoffs may be part of that new reality.
While there are reasons for downsizing that range from wanting to grow your business (which may mean cutting staff so you can direct company funds in another direction) to taking the company in a new direction, it is a difficult time for both employer and employee. We offer a few steps to take to make it a bit less traumatic for both parties.
Cutting entire departments or stopping production of particular lines of your operation may not be the way to go. Unless you are 100% certain you will never be reopening a division, you may want to consider halving the workforce. Put a realistic plan in place for downsizing and while it may seem easier to cut an entire department across the board, your business may suffer.
Don’t make unrealistic promises to your staff. You will certainly hope that the economy will turn around and that you will be able to rehire your staff but the fact is it may not happen. Growth and bouncing back from the recession could be a long process and you don’t want to give your employees false hope. Bottom line, you may find that when you downsize, your company may be better able to operate once you’ve shifted the work around to the remaining staff.
Image by Getty Images via @daylife
Layoffs are not easy, but you need to handle them with care and hand your employees their “pink slip” face-to-face. Too many business owners have been known to offer their employees a lay off notice via email. This is not the time for hands-off communication. Remember, your remaining employees want to know that you care even though you are unable to keep them on board. Also, if you’re letting your employees go make certain the cost cuts aren’t being used in other areas of the company. If you lay off employees and then upper management goes on an all expense paid Hawaiian work retreat, it is not sending a good message.
