By Sandra Reder

In today’s economy, many companies are being faced with the very real possibility that they may have to downsize their workforce.

Not only is this a life changing and often devastating experience for the individuals who are being downsized, it also has the potential to create fear and morale issues within the workplace. People left behind (the survivors) may feel that their positions could be next in line, they may have close friends who were laid off, or they may be impacted by additional workloads as a result of the layoffs. All of these factors can create a work environment with an underlying feeling of fear, resentment and anger. Under these conditions productivity and engagement can plummet.

In boom times many companies had mandates to become “Employers of Choice” in order to attract and retain top talent. What many companies don’t realize is that it is equally important during times of economic down turn to maintain your position as an “Employer of Choice”.

Your remaining workforce, if not managed properly during times of uncertainty, may feel that their jobs are threatened and they may begin to explore other options. They will also be in demand as companies look to their staff to enhance their market position with their customers and with other team members. It is critical that companies work to ensure that they are taking care of their people during times of uncertainty. While difficult choices must be made, how you execute on these choices will set you apart from other employers.

If you are faced with the difficult task of downsizing there are a number of things you can do to lessen the negative impact on both the exiting employee(s) and the people left behind.

Once the decision has been made to downsize your workforce, ensure that you have a plan in place for execution. Everyone involved must understand what their role is and how they play a part.

• Emphasize sensitivity to the pending lay offs within your management team, both with how they deal with the individuals exiting and the staff remaining behind.
  
•  Provide some sort of an exit package. For executive management positions this typically will be an extensive relocation package that would include services from a traditional outplacement firm. For positions that perhaps don’t fall into the “executive” category it is still critical that you offer a basic package to the individuals who will be leaving.

Laying off your employees with more than a final pay cheque and a pink slip will go a long way towards how they perceive you as an employer.

A few easy tips to follow include:

• Conduct the exit meetings with the employees that are leaving and then make sure to meet with the remaining staff to assure them that the process was handled with the employee in mind.
  
•  Share with them information on the programs that were offered to the individuals who were laid off. It will help them to see that you handled the exit process with dignity and respect.
  
•  Approximately 1-2 weeks after you have executed the lay offs, have another meeting with remaining staff to check in and see how they’re feeling. Offer opportunities for both open direct and indirect feedback, such as roundtable discussion forums for direct communication or anonymous suggestion boxes for indirect or blind feedback.

The bottom line is to ensure that you communicate with your staff! Keep everyone apprised of what is going on. In this case no news is not good news!

How you choose to conduct a downsizing will greatly impact your image. What your employees say about you to each other and what the exiting employees say about you after they’re gone, will either further enhance your position as an “Employer of Choice” or completely undermine it.