HUMANIZING DOWNSIZING
Doing layoffs is always a tough, and sometimes even toxic, situation. It can be an organizational lifesaver if it's used sparingly and with a lot of planning, but if it's used repeatedly or without a thoughtful strategy, downsizing can destroy an organization's effectiveness, according to an article in About.com. How you treat people really matters - to the people who leave and to the people who remain.

Remember that how a company handles downsizing directly affects not only the employees who are being let go, but the morale and retention of valued, high-performing employees who are staying "

Some managers and CEOs forget that behind the numbers on the spreadsheet are workers with families to support and bills to pay," said author Ruth Haag in a recent press release from Rocks-DeHart Public Relations. "Employees should be treated with respect at all times, and especially when you're delivering the kind of news that affects their financial and emotional wellbeing."

So here are some steps a company can take to minimize the downside of downsizing:

• When you must lay people off, notify the entire company that financial problems exist and ask if there are any people who would like to a) volunteer for lay offs, b) reduce their hours, or c) retire early," suggested Haag. "Often, there are enough people who fit these categories that a large-scale involuntary layoff becomes unnecessary. This is a simple, yet very effective way to make the staff aware of the problem and invite them to be a part of the solution."
  
  Some managers may worry that if you let employees know about financial difficulties, your best workers will become worried and leave. Not necessarily, added Haag. Good employees will want to do what they can to help the company survive if management has built a loyal following.

• Take each person who is being laid off into your office and talk to them privately. Give them time to understand what's happening to them. Do not announce layoffs to an entire group of workers and then point to the people who you want to come in for individual interviews. Use discretion. Allow each person their dignity.

• Thank downsized employees for their work. Acknowledge the company's appreciation for anything in particular they have contributed - whether it's outstanding project management, consistency, dependability, etc.

• Have whatever compensation they are due ready for them.

• Provide them with booklets about unemployment and let them know where they can go for further information.

• If supported by company policy, offer them a letter that they can present to a potential employer which thanks them for their work and indicates that their layoff was a business necessity.

• If a branch or department manager is being laid off and the entire branch or department is being closed down as well, you may ask that manager to stay behind after everyone else is gone to pack up their office. In that case, you may consider offering the manager an additional bonus for that extra work.

• Encourage employees to participate in a confidential exit interview with the Human Resources department. Exit interviews can be a very valuable way to gather information about your company's work environment.