Workforce Reductions

The work place is changing rapidly! Reductions in the workforce are dangerously leading to increased work overload. Fear is permeating the work environment as survivors are concerned about being axed next. Businesses are in danger of failing if leaders are not able to successfully quell employee anxieties, stress, disengagement and burnout.

One of my coaching clients shared with me that it is rumored that her employer will be undergoing major cutbacks in the upcoming months. Although nothing has formally been announced, employees are communicating informally, through the grapevine. They have been told that they will no longer be able to telecommute, as well. The assumption is that they want them all to be at the office location so that it’s easier to lay people off and escort them out.

How organizational change is managed and communicated is essential to operating the ongoing business. The most successful businesses engage employees in the process and keep them informed about the status of things.

Employees naturally fear the unknown and react heavily to speculation and negative rumors. When employees feel threatened, their daily working lives are effected as energy is expended on fear and worry rather than achieving business results. Employees may quickly become paranoid and distrusting. If communication is not done in a timely fashion, by the time employees hear the news, productivity has already taken a downturn.

In contrast, necessary layoffs are understood if clear, honest, compassionate information is conveyed, adequate notice is given, outplacement assistance is provided, and fair severance packages are offered, and if those who are to be retained are assured of the security of their jobs and given assistance in adapting to change.