A Corporate Revolution: Downsizing with Respect

Often when companies are faced with the grim task of downsizing, focus is placed on the details of headcount, organizational charts and numbers, while the basics of how to communicate the change is given the short shrift.

In a recent New York Times article, After Downsizing, How to Motivate?, Kelley Holland explores this issue.

The wobbly economy is producing a steady stream of layoff announcements — the number of extended mass layoffs rose 8 percent in the second quarter, based on preliminary numbers, versus the period a year earlier. So it’s more important than ever for managers to understand how best to handle these downsizings, not just for those who lose their jobs, but also for those who are still working.

Ms. Holland, in speaking with Warren Bennis, a professor of management at the University of Southern California and the author of “On Becoming a Leader,” makes an important point for all corporate executives – respect is key.

Respect is a vital component of communicating important decisions like downsizing to both employees receiving pink slips and those who remain. The cloak of secrecy and the murmur of speculation create an air of distrust, anxiety and suspicion.

Companies that crack the communication code bring their employees into the mix by sharing a vision, goals, obstacles and even difficult decisions. By helping employees understand the reasons for the layoffs and the realities the company is facing and acknowledging the realities for those leaving the company and the employees who will have to do more, management can replace the fear with a sense of community.

It is up to the leadership to define how difficult times are navigated. If your company is considering layoffs you may want to consider:

• Is there an air of mystery, rumor and fear permeating your process?
• Are you communicating beyond the numbers?
• Are all levels of management prepared to address employee concerns, fears and moral?
• Do employees understand the connection between the company goals and the lay off?
• Do outplacement services effectively address the needs of those laid off?
• Are programs in place to address the moral of those who remain?
• Does the organization’s career management program show employees a path for growth?
• Are you communicating with genuine respect for your corporate community?

A true leader understands the hard cold facts of business as well and the walk of those who breath life into it. Adding a healthy dose of respect to the mix is a perfect way to revolutionize your corporate community.