How to downsize without causing ripples in your organisation

At one point or another, the need to let some staff go will confront you. As a CEO, a HR person, a manager or an entrepreneur, business may not always be rosy. When the tough times come, you may be forced to tell some of your staff good bye. Many factors may be responsible for this. Some are your fault, others are economic factors that you cannot control. Sometimes you have to let them go because there is a new management who is just willing to start afresh. Whatever the reasons, when the only choice left is to dismiss your current workforce and make do with few hands, you may need to put the following into considerations.

Don’t get sentimental

When it is obvious that investing in the current workforce will only make you spend without making money back, it is in your best interests to get decisive about who is staying and who is going. Getting sentimental before and while you take that decision will only make you strangle your dying business. All the while, there are people who have contributed to the lack of productivity in your organization. Irrespective of the history between you and such ones, you may have to turn your back against them and face your business. Meanwhile, there are some people that you have to retain.

Never lay off sales people

The sales department of any organization is the lifeblood of such organization. They are the ones generating the revenue for you. When your decision is to downsize, it may not be healthy that you look their way. Granted, there are sales people who might have slowed down in their performances, it is in your best interest to examine the reasons for this. Doing so will let you know if their lack of performance should be blamed on lack of motivation from the organization. If it has become established that your sales force is not performing because of laziness, there is nothing wrong to show them the door.

At any rate, try as much as possible to ensure that the sales team are retained when you are downsizing. They know the territory, they know the clients that generate the needed figure. They are aware of steps that have been taken in the past when sales was low.

Forget about paper qualification

It has often been said that examination is not the best way to test a student’s knowledge. In that line, that someone has an MBA does not mean he or she will perform better when placed beside a secondary school leaver with years of on the job experience. So, if you are confronted with choosing between someone with a better paper qualification and another person who will get the job done although he or she does not have that Master’s degree, it is better you stick with experience.

The plus to this is that the person with a seeming lower qualification will get the work done better and faster while he is being paid a cheaper rate. Whether it is from the sales department, the administrative or technical aspect, experience always counts.

 Make them know it’s not your fault.

Whether you are retaining or you are laying some people off, the importance of communication in an organization is indispensable. Hence, explain to the victims of downsizing that it is not your fault that you are letting them go. Highlight their good qualities and mean it. Make them see that your decision is based on the fact that you have been pushed to a corner. Doing this, will help you to avoid situations that will make you create enmity between you and them.

It is also important that you end the conversation on a hopeful note. Assure them that you always bear them in mind, that you will definitely get back to them when situation of things improve. Although most will not wait till that time before engaging in other works, make the promise and mean it.

As part of being honest, it is okay for you to refer them to other places that might have opening. If you are truly sure about their ability, undertake to be a referee for them.

Make it legal

While dismissing some staff, make sure you are doing so within the bounds of the laws. Even if you do not have a lawyer in house, try to hire a lawyer so that you can consider the legal implications of your actions before taking them. Doing personal research about labour law will be insightful to you. Ensure that all of their entitlements have been taken care of as you bid them good bye. Do not owe the person you are sacking. He is a wounded lion that may bring unnecessary lawsuits.

Congratulate the retained

For those who have become fortunate to be retained, it may be right to offer words of congratulations. This should go further by reminding them that they have more responsibilities now. Tell them that the fact that you have laid others off does not mean that they remaining staff are better off. Urge them that their being retained is because of their hard work. If they are willing to continue with the organization, it is pertinent on their hard work. Commence work immediately and prove to yourself, the new management and even the sacked staff that you can do it better now that your workforce has been reduced.

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