Helping survivors cope with downsizing.

by Raquel Flor

Downsizing is a life-changing event for the employees involved, and the mark of a good manager is the ability to raise the productivity and morale of those left to hold the fort.

Can you name the most important asset of an organization? That's right, it is human resources. People are the lifeblood of the organization--they are the source of all innovation and creative ideas and without them, technology no matter how sophisticated will be useless. Unfortunately, despite their value, people are often the first casualties when companies decide to tighten their belts, effect a merger or an acquisition, or downsize.

Downsizing--or rightsizing, layoff, redundancy, retrenchment or whatever it's called nowadays--is often a life-changing event for the employees involved, whether survivor or casualty. In bad times, downsizing is a business practice often resorted to by companies to stay solvent. While it may be justified, worker streamlining has serious ramifications that need to be handled with care. There are financial and humanitarian considerations for those who have to go, of course. But oftentimes overlooked is the fact that those retained by the company may suffer just as much as those made redundant.

The challenge for management
It's hard enough having to undergo downsizing upheavals, including the heart-breaking experience of seeing colleagues leave. But once the deed is done, you have to be ready to tackle a new set of challenges—a workplace filled with negative emotions such as grief, anxiety, anger, depression, conflict, defensiveness, emotional shock and loss of morale.

A manager in this situation must have enough presence of mind to rise up to the crisis. If issues are not dealt with properly, you may see a dramatic drop in the productivity and morale of the survivors.

What can you do? An important step to take is to forestall further damage by being visible and accessible. Survivors will definitely want to talk to you, and your task is to show compassion and listen to their sentiments. It may be very exhausting to become the receptacle for people's gripes and outbursts, but it's very crucial that you make people feel your concern and interest in their welfare.

One thing you can do to inspire confidence is to speak about the company mission, vision, and future plans and the new work environment that you'd like to create. Take the time as well to thank people for their valuable contributions.

Lauren*, who works in a global company, says they hold on to the “rules of the garage” (their version of a mission statement) to give them direction amid a downsizing program. This is important because people need to know what they are trying to achieve. Instead of being left out in the cold, they are made to understand and can accept the changes taking place.

You also have to make them see their role in ensuring the company's continued survival. Have a venue for regular group discussions and one-on-one meetings that will allow people to ask questions and will let you discuss goals to make the staff feel they are part of the big picture.

Isabella, the HR officer of a multinational company, mentions how their president holds weekly employee meetings and gives updates on what's happening including the latest news regarding their investors' plans. Communicating the facts as honestly as possible can do a lot to ease people's anxiety.

Their weekly meetings are similar to the “HR series” conducted by the human resources department in Lauren's company. The series is held twice every quarter for management to have upfront communication with the employees. Getting first-hand information from the higher-ups allows them to know company developments and where they stand.

Need for support system
In times of instability, people need some sort of support group to help them feel appreciated and valued.

According to Susan Heathfield's article in www.about.com, she had clients who put up a “good news board” where any employee could post positive information. And there were some who formed a “smile team,” composed of a group of employees who planned creative activities to boost their peers' morale.

In an IT company, an HR executive shares the fact that they hold a “food day” every last Friday of the month when everyone would gather for lunch together. This provides a venue for talking about office and personal matters and getting closer to each other.

Lauren says that on top of additional benefits, they have an instant recognition program. If you turn in an extraordinary job, your boss rewards you with gift certificates. Rewards and recognition, no matter how simple and in whatever form, can really do much to raise collective productivity and spirits.

In another company, Robyn says they also extend other benefits like wedding gifts and flowers delivered in case of hospitalization or death. But what they're really working on are other practices to see them through the transition phase. They have a management bulletin and a transition newsletter to keep employees updated. Training workshops are conducted to create a new culture and emphasize company-cherished values.

Compassionate leadership
It is important to establish a sense of organizational stability after downsizing. Survivors need to feel that the company sincerely cares for them. And this will be evident with the programs you implement and how you interact with the staff. This requires firm yet compassionate leadership and open communication lines.

Remember that you can help diffuse the negative effects of downsizing by exercising sensitivity toward the feelings of others, facing squarely the problems arising from the changes and clearly outlining future directions. Make sure everyone understands your vision and feel they are a valuable asset in the new reorganization.

If you succeed in doing that, then eventually, everything will fall into place.