Managing Separation Outplacement & Downsizing

Economic uncertainty is precipitating a number of dramatic corporate changes, as business owners and managers are faced with the difficult task of downsizing. The key is to handle the process thoughtfully and sensitively, keeping one's long-term reputation in mind. Ask oneself: "How will this move look once we emerge from the downturn stronger than before?" An extra helping hand with the employee you are laying off, in the form of a trusted staffing agency, can go a long way to make your surviving employees feel more confident in their job security, maintain high morale during the darkest times and secure the company's reputation community-wide.

Instructions

1. Opt for transparency. Don't let fear of exposing too much keep you from being upfront with your employees. Before anyone is let go, staff should already be aware of the company's financial condition. Keep lines of communication open.

2. Hire an established staffing company. You should refer any employees you are terminating to this company. The company should be one with a track record of strong performance in the community, and one that has a history of helping businesses of your size and type. In addition, these people should be sensitive enough to know how to handle and motivate employees who are transitioning after termination.

3. Make it clear to your employees that outplacement is available, and outline exactly how to contact that staffing agency. This staffing firm can assess each employee's skills and needs, and offer career and resume guidance. It can help to get your former employee hired with another company quickly.

4. Go the extra mile. Call your contacts and refer a team member to their organization. This can pay off in a way even the most glowing written recommendation or impeccable resume cannot. Some staffing companies may encourage you to do this.

5. Make sure the severance package and any termination-related documents are clear. You want the employees to understand what is offered and available to them and what is not, so you don't find yourself in a courtroom battle. That's not good PR. Consult with your legal counsel on this matter and when in doubt, opt for plain language as opposed to legalese.

6. Be attentive to the concerns and needs of surviving employees. Often the survivors are overlooked. This is a recipe for disaster. Rumors start swirling and people may become so absorbed by the fear of losing their job that they become distracted from their day-to-day work duties and start to look elsewhere for work. Quell that fear by clearly explaining the changes taking place within the company every step of the way so they don't feel in the dark. That's when rumors start. Managers should make themselves available to speak to team members one-on-one, if need be.