How to react to a significant reduction in workforce size
10 November 2009
News this week broke of a Liverpool based syndicate who netted themselves half of the Euromillions prize fund of £91 million
(http://www.telegraph.co.uk/news/uknews/6536802/Merseysides-Magnificent-Seven-named-as-45m-Euromillions-winners.html)
With the winnings split between the “Syndicate Seven” as they’ve been labelled, each can expect to take home short of £6.5 million. Assuming that, as most would, the new millionaires will decide that they would like to spend their forthcoming days spending their money, their employer, BT, will be left with a significant reduction in personnel at a local level.
This kind of mass reduction is not only restricted to lottery winners; many businesses will experience cyclical employment where a number of people seem to leave at around the same time.
But what should businesses do when experiencing such reductions in people power? Steven Kirkpatrick, Managing Director of Adecco staffing in UK and Ireland gives his views.
Don’t just hang on
It’s essential that businesses proactively address the issues of having a reduced workforce; whether this is through hiring to fill vacancies or adjusting working practices, businesses can’t just plug holes. By burying their head in the sand and hoping everything will be ok, those in charge of recruiting will inevitably have a negative impact in their business, clients and remaining employees.
Don’t hire in haste
While the prospect of losing a number of employees may at first be daunting, employers must not succumb to the temptation to indiscriminately fill vacancies irrationally or as soon as possible. Even when it seems that candidates are lining up at the door, employers should never rush into their hiring decisions. Just because they feel that time is not on their side; inevitably this will only impact negatively on other staff through increasing their workload and could affect the business in the long term. Poor hires can be expensive too; often lowering productivity and in the worst cases employers may be forced to re-hire again if the candidate is really not up to the required standard.
Don’t unnecessarily commit long-term
If employers are unable to find the ideal candidate then they should consider alternative employment options. It may be most suitable to employ temporary workers that can quickly and easily come in and keep operations running as normal until a full time solution is found. Alternatively, if workloads are likely to lessen in the near future, e.g. the work is seasonal then perhaps a longer-term contract worker would be a sufficient replacement during busy periods.
Communicate internally and externally
It’s essential that businesses communicate quickly and clearly any significant personnel changes that are likely to impact others. Internally, all other employees should be kept up to speed on any reorganisation so that they’re fully aware of why other employees have left and how the company intends to react to the situation. Without this, employees will inevitably begin talking among themselves, resulting in rumours, speculation and a confused workforce.
External communications are also important. Businesses should contact key clients as soon as they’re made aware that employees are leaving if it will impact the client relationship. Offering this type of information to clients shows that a business is open and honest. It also gives businesses an opportunity to clarify any worries that the client may have over internal rifts or any reduction in productivity that could impact them.
Look within
Employers should not overlook the possibility of internal promotions or re-structures. Although business cannot afford to “just leave it” when employees depart in any significant number, businesses should consider that they may have sufficient resources within. A reduction in headcount can be a good opportunity to see just how much work there is to be done and who has the potential bandwidth to assist in a role outside of their original remit. If a business can think laterally, a significant reduction in headcount can, in the longer run, turn out to be a money saving solution.
Stephen Kirkpatrick concluded,
“Changes in the workforce affect both employers and their staff. For employees within an organisation where this happens they should not be daunted by the prospect of having an increased workload; instead they should use it as an opportunity to progress their career by offering themselves to take on other responsibilities.”
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