When the unexpected or unwanted happens, it is important to have a clear framework and processes for how to maneuver in uncharted waters. Here we have gathered eight tips on what to do when your organization needs to downsize either due to circumstances in the business or with an individual employee or manager.
Managers and HR staff often dread tackling such processes. If they are unsure of the steps - both legally and in human terms - this will of course affect the process going forward," says Gjermund Nyseter to FRONT Leadership Weekly. That's why it's important to have a roadmap:
What to consider when downsizing
- Make a thorough analysis of the situation
- It is very important to create good insight and understanding of the facts so that both the affected employees and the organization can accept the measures that management ultimately decides to take. Be aware of the requirement for documentation and that this must be presented to the parties in the case. Describe the situation as objectively as possible. Avoid drawing conclusions too early. Check several sources. - Be aware of the organization's culture and values
- Implementing downsizing means exposing yourself and your organization to pressure on your own integrity. It is therefore important that there is consistency between the leadership exercised and the organization's values. Remember that everyone else sees how those affected are treated. Be clear AND empathetic in the process - from start to finish. - Then decide what options you can/will offer those affected.
You now have two options:- Conduct a purely legal process - in accordance with section 15-7 of the Working Environment Act
- Offer voluntary solutions based on freedom of contract. Here you should think "yes please, both". That is, run the process in accordance with the formal requirements of the Working Environment Act, and at the same time be open that you also want to offer a voluntary solution. This means that you agree together on the conditions for the affected candidates to resign from their positions - voluntarily. It is important that this is done clearly and within the framework already set. For example, how large the financial compensation will be, the conditions for a voluntary resignation and what help and support the affected candidates will be able to receive, etc.
- Prepare a dedicated and clear communication and contingency plan - Make a plan for what to communicate, where to communicate and when. Be consistent and clear in everything you communicate. Repeat the same message, but in different ways. Clarify the message - what is "heard" is not necessarily "understood", and therefore cannot be "accepted".
- Practice communicating the "Why, How and What" of the process
- Why - Why management does what they do and why it is necessary for the process and the organization
- How - Is the way management does it, showing how you take care of the candidate(s) and the organization
- What - Shows concretely what management does and what management does not do. Be authentic - and well prepared - If you are unsure of what you can/should say and how to say it - practice the conversations BEFORE you conduct them. Remember; Your condition is contagious - if you are confident, the affected candidate(s) will feel more confident.
- When you "push" the button, it's too late to turn back
- "Zero moment of truth" comes when the organization receives the message. At the same time, both the organizations' and your psychological reaction begins. Be aware of what you want to convey and think carefully about what you think will be the impression left by your communication. It is rarely what you think or hope for. - Negotiate (within a given framework - see point 3) a balanced severance agreement, and ensure that the candidate is released as soon as possible - exempt from both employment obligations and employment law
- It should be mutually beneficial for both parties, and adapted to the needs and situation - both for the company and the employee. A good end result is when both parties are slightly dissatisfied. - Follow the candidates from a distance and stay close to the organization's thoughts and feelings in relation to the process and decisions
- Stay in overall contact with the candidates' further process. Report back to the organization and/or department when there is good news - such as that the candidates have moved on in their career. This will help reinforce a positive outcome of a challenging process.
Change is coming faster and has become part of everyday life for most people. With increased demands, stronger cost pressure, demanding framework conditions and necessary digitalization, organizations still need to achieve their results, faster and faster. If you follow the advice above, you will be far better equipped next time - because there will be a next time.