Tips When Downsizing Your Workforce

Downsizing Workforce

The last thing you want to happen is to downsize your employees. It’s the last resort since you consider your employees as family members. You also don’t want to hurt them by letting them go. Besides, it’s terrible to let go of employees during this difficult economy. However, you have no choice but to downsize if it’s the only way to sustain your business. Here are some tips to ensure a smooth process.

Be transparent

Let your employees know that you’re thinking about downsizing. You don’t want to surprise them in the end when you’ve already made up your mind. They deserve your honesty. It also gives them time to think about leaving now instead of waiting until you’ve decided. You’re a credible leader if you decide to be transparent instead of hiding the truth from the employees.

Present your vision

Be transparent

Downsizing is only a part of the process. It’s not the end goal. You have other objectives to meet once you’ve finished downsizing. Therefore, it helps to present your vision first and explain to everyone what you intend to do to boost the business. Not everyone will understand, but you’re at least honest about the plans.

Ease fears

Everyone is afraid about the idea that you’re going to downsize your employees. Anyone can be on the chopping block. The best thing to do is to ease fears. Let your employees know what happens if they get laid off. What benefits are they going to get? How much time will everyone have before you reveal the plans? You want your employees to avoid fearing for the unknown.

Be fair

You must be fair to everyone. You can’t decide whom to keep based on personal reasons. Evaluate what your employees have done over the years. Seniority should also not guarantee that the employees are kept in the team. You want the best people to work with you as things move forward. Be clear about the criteria on how you decide whom to keep and let go of. You will prevent complains if you’re clear about the standards. Consult your management team before determining what standards to use in deciding whom to let go of.

Rethink the plans

Sure, you’ve already made up your mind about downsizing your employees. However, it doesn’t mean you can’t change your mind. Circumstances could improve along the way and downsizing is no longer an option. Constantly monitor the improvements in your business before deciding to lay off your employees. You might still survive even if you keep them in your team.

Hopefully, you do the right thing and not hurt people in the process. We run in circles. You might let go of these employees for now, but you can rehire them soon. You don’t want to end on the wrong note and severe ties.

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