The American workforce has seen great change in the last 20 years, one main characterization has been company downsizing. Working for the same company for an entire career and retiring with a gold watch is now the exception rather than the rule. The public and private sectors face the same potential loss. While profit, shareholder support, and brand loyalty are real concerns, this loss is at the heart of the U.S. employer/employee relationship. It is the loss of truly secure employment. In March 1996 a series of articles were published in the New York Times entitled "The Downsizing of America". One of the articles noted that more than 43 million jobs have been lost in the United States since 1979. This equals nearly one-third of all American households.

Aversion is an option available to all, but used by few. Jeffrey Pfeffer, a Stanford University professor of organizational behavior, says, "Layoffs often don't save any money." That is not exactly the case all the time. A leading human resource consulting company surveyed the restructuring practices of 531 large companies. The study concluded that although well over half of the companies surveyed achieved their goal of reducing costs and expenses, less than half achieved their goals of increased profitability, productivity, and customer satisfaction. Companies do face the reality that they will lose employees they wanted to keep; the morale will suffer with those who stay; and the company’s future depends on its survivors. How, then, do you conduct a layoff assuring a healthy company after the fallout?

Numbers paint a detailed picture. When no notice is provided, career services' information will get to 10-15% of the workers versus over 85% when notice is provided. Employees stress the need for honest and open communication from the company's leaders about what is happening to the organization during the downsizing. Career counseling, personal counseling, career/skill and career transition training, relocation assistance, outplacement assistance, résumé writing assistance, access to office equipment, paid time off, child care, financial counseling, and access to job fairs and to Internet job placement sites are all services companies have provided when successfully downsizing.

Rapid Response minimizes the effects of layoffs for workers.
Knowledge can empower your dislocated workforce. Employment service workshops provide employees needed information about, résumés, cover letters, interviewing techniques, career exploration, family communication, application preparation, job search techniques, and utilizing Internet resources. Attendees have a quicker re-entry rate into the workforce, and are better equipped to vie for higher paying jobs. Ronald Henkoff wrote in Fortune magazine, “A distressing 80% of downsizers admit that the morale of their remaining employees has been mugged. These sullen, dispirited, hunkered-down folk, lest we forget, are the very people who are supposed to revitalize your enterprise and delight your customers.”

Rapid Response Can:
– Arrange for interpreters
– Conduct multiple workshops and employee information sessions;
– Coordinate with local service agencies and community partners to provide integrated     services;
– Survey employees to determine appropriate services; and
– Provide resource packets and materials.

The Rapid Response team may include:
– Unemployment Insurance Specialists
– Workforce Investment Representatives
– CredAbility
– Local Community College
– Health & Human Services

Services:
– Job search, matching, and referral
– Labor market information
– Interviewing and résumé writing
– Career assessment and counseling
– Training and re-employment programs
– Unemployment insurance
– Support in meeting financial and family needs
– Easy access to coordinated services

The name of the process is irrelevant. Downsizing, rightsizing, reorganizing, reducing, or any other term produces the same result; a loss of jobs. The trick is not allowing a downsizing to become a company closing. Fortunately, the success or failure of the downsized organization depends on its remaining workforce, one that has been directly impacted by every decision made during the downsizing process. A well-planned and managed downsizing process should allow the survivors to perceive they have been treated justly and with kindness. It will promote trust and faith in management and in the future of the organization among these employees and empowers them to provide improved service. Take these two examples:

Company #1 - A technology company begins a layoff in June 2000. The layoff starts with 30 people. Management did not inform employees until the day of separation for fear some of the remaining employees would leave and impact the company’s ability to maintain its production goals. Following the initial layoff the company loses 10% of its remaining employees to other local employers. Unable to maintain production the company cuts another 60 employees and tried to use outside vendors to fulfill their obligations. Again no notice is provided to the employees. As the company lost clients they had to cut another 120 employees. By January 2001 another 20% of the remaining workforce had abandoned the sinking ship.

Company #2 - A travel related company impacted by September 11, 2001 makes an announcement September 13, 2001 that it would be laying off 20% of its employees within three months. At the same time the company makes clear where the cuts would come from and how they hoped to avoid the reduction. It brings in the Georgia Department of Labor set up career and transition services to, including workshops, job fairs, and a host of other programs. This company allows us to be in its facility in addition to allowing the employees to attend during working hours, on the clock. During the layoff the organization maintains a constant stream of information going to all employees about what is happening. The employees rally and work harder than before; some even sacrifice a portion of their wages while others take unpaid time off. When the three month deadline comes up the company has reduced the number of downsized employees to 12%.

What do you think happened to the two companies? The first one closed after another three months of struggling. The total workforce displaced was over 900 employees. The second company is still around. After the initial layoff the organization rehired 4% the next month. The remaining employees either retired or were hired back within the next four months.

A company that wants to survive a layoff must take advantage of every resource available. The Rapid Response Unit of the Georgia Department of Labor provides transition services free of charge to companies when they need it most. For more information, contact us.