A common expectation of employees and communities is that a company explores other strategic steps before moving on to downsizing. Cost reduction, reorganization of the company and the search for additional financing are possible financial options instead of staff reductions. At some point, however, the decision to downsize can be an ethical step, as it protects the company and the remaining employees from failure. In healthy companies, you show the door to incompetent or negligent employees after documenting their failure or refusal to perform, but downsizing — another word for downsizing — has nothing to do with employee performance, observes management consultant Bruce Weinstein. The way you make the tough decisions when downsizing shows whether your company`s employees are valuable, says attorney Janet Keeping, president of the Sheldon Chumir Foundation for Ethics in Leadership. Treating workers ethically in the event of dismissal is more than just avoiding complaints of discrimination, although that is certainly part of it. It`s about treating your employees – both those who leave and those who stay – as you want to be treated. If you apply the golden rule to downsizing, you can do what needs to be done without making it harder for those affected than necessary. This is a downsizing in the right direction.
If you have initiated this process with employees and base your staffing decisions on the future direction and needs of your association, employees will have a better understanding of the business case for layoffs. One of the best vaccines to protect against the destructive nature of downsizing is to involve employees in decision-making. Obviously, you may not be able to talk to all employees about the details of layoffs. But working with your team to think about the future direction and needs of the club has many benefits. Front-line managers can get a glimpse of where they can cut budget more effectively than those in boardroom. Managers can also gain insight into which jobs could be eliminated with the least impact on programs and revenues. Employees in general may have ideas to improve efficiency and generate new revenue. Layoffs may be inevitable, but they should not be unprincipled. If you reduce staff fairly and transparently as possible, you will keep your remaining team together and position your organization for a better future. Neil Kokemuller is an active business, finance and education writer and content media website developer since 2007. Since 2004, he has been a university professor of marketing.
Kokemuller has additional professional experience in marketing, retail and small business. He holds an MBA from Iowa State University. When firing an association, an important additional audience you should consider is your members. The message to members should explain the operational necessity of layoffs, as well as the steps taken to be equitable and minimize pain. If you`re downsizing ethically, treat your departing employees with the same level of respect you showed them when you interviewed them for the job. Consider their feelings and try to make this transition less painful for them. After all, they have lost not only their source of income, but probably most of their friends as well. Keep in mind that losing a job is one of the most stressful events a person can experience and try to put yourself in their shoes in order to make their transition to a new job as smooth as possible. It is important for leaders and managers to emphasize fairness and human dignity in the workplace when they may need to be reduced. First, directors must clearly identify the objectives of downsizing, assess their significance, and determine whether they can be achieved by other means. Once a decision has been made to downsize, senior managers must clearly communicate the reasons and objectives to those responsible for identifying affected employees. Employees selected for redundancy should, as far as possible, be identified on the basis of formulated workforce reduction targets.
If it is not clear, difficult decisions can be based on a variety of factors: „overall“ reductions; employee skills, qualifications and performance; diversity objectives; Seniority; or several criteria. It is also important to respect human dignity in the dismissal process. Affected employees must be informed in advance and honestly justified. Normally, they should be encouraged to work until the effective date. All employees need a clear and honest explanation of the reasons and expected effects of the dismissal. The free flow of information must be emphasised without seeking to control it. How downsizing is managed speaks volumes about the nature of an organization and its leadership. Ethical diminution is, above all, a refusal to deny the complexity of the issues and evidence of the organization`s commitment to justice and human dignity. Consider ethical factors when communicating a downsizing decision.
First, respect the privacy of laid-off employees and talk to everyone privately. A personal approach, especially in a small company, is also more respectful than the involvement of an external consultant or a dismissal expert. Explaining the honest reasons for the dismissal and giving the employee an overall appreciation can help soften the shock. Several other areas can take on symbolic significance in the event of downsizing: In some states, companies are required by law to offer several weeks of severance pay in the event of mass layoffs. Check with your state`s Department of Labor to find out. Regardless, communities and employees often feel that you have an ethical obligation to provide some compensation and ongoing performance coverage to help an employee after a layoff. Some companies also pay for placement services such as developing resumes and cover letters and supporting headhunters. Ethical downsizing means treating employees fairly and respectfully. Here are seven ways to incorporate downsizing ethics into your release process. One way to mitigate feelings of injustice among employees is to show that the pain has spread. If employees believe that you are „playing the favorites“ – that decisions about layoffs were unfair or not based on the needs of the company – the negative impact on future productivity and cohesion will be felt in the long run. When employees feel that certain employees or departments have been unfairly spared or targeted, resentment can persist.
Recognize the ethical importance in terms of the needs of the remaining employees. Many may fear that their own jobs will be threatened. Downsizing can also give the impression that the situation is hopeless for the organization. A meeting to explain the dismissal and address rumors or uncertainties can help reassure employees and prevent those you want to keep from seeking a more stable situation elsewhere.