Outplacement Eases the Pain of Downsizing

By Richard P. Dacri

The economy, like the Energizer Bunny, seems to just keep on going. Companies are growing, growing, growing and hiring, hiring, hiring. Yet scattered amongst the ever increasing demand for scarce labor, we are seeing firms beginning to downsize their workforce. Whether this is the beginning of a general economic downturn or merely a blip on the screen, laying off employees can pose significant consequences to those affected and to the organization.

Vulnerable to Lawsuits and Violence
Even the best-executed downsizing creates tremendous anxiety and loss of productivity. The work force is disrupted and the company is turned upside down. Affected employees become angry and feel a sense of betrayal. They and their families are now faced with the loss of a job, as well as severe financial and emotional pain. There is often a desire to lash out, to make the employer and the boss “pay” for this action. At this point, employers are tremendously vulnerable to lawsuits and even threats of violence.

When downsizing becomes the only option for employers, it is important to put a plan in place to deal with this emotionally charged atmosphere. Organizations must look at this strategically: how are we going to address this with the employees who are going to stay with the organization--the “survivors”-- and how are we going to deal with the laid off employees?

Outplacement is the Solution
Outplacement services may be part of the solution. So what is outplacement? It’s a process of easing selected employees out of the organization by providing company-paid assistance in finding a new job. Beyond helping the laid off employee, outplacement consultants can provide the employer valuable assistance in the reduction-in-force planning process.

Easing the Pain
Case in point: a mid-sized manufacturing organization was faced with need to reduce their workforce when they contacted Dacri & Associates for outplacement assistance. After carefully evaluating their situation, we initially offered them alternative suggestions to lay-offs. Though these ideas helped to reduce the numbers of people who ultimately had to be cut, they did not eliminate the need in it entirety--their sales were just not there to support the size of their workforce.

Bigger Isn’t Better
The company wanted to provide these employees with job placement services, but couldn’t afford to open an elaborate outplacement center. Dacri & Associates was selected to provide services both on-site to the company and off-site to the affected employees at a fraction of the traditional outplacement costs.

For the company, we assisted them with the planning process and coached the managers on how to handle each situation. We worked with the managers in the preparation process and the scheduling of the lay-off. We also helped them to deal with the survivors--thus helping to maintain the morale and productivity of the remaining employees.

Benefits to the Individuals
For the 25 exempt and the 30 non-exempt employees, we developed a multi-component program to address their needs. The program provided employee support during the transition period, job readiness training, job search skills and resume preparation, interviewing skills, and on-going counseling and support.

The program was positively received. Employees were immediately able to refocus the shock and anger of the job loss to a job search process. In addition, rather than being faced with the loneliness that often accompanies the loss of a job, through the outplacement program they and their families were able to have a forum to speak about what they were now experiencing. The on-going support, job skill development, networking and negotiating skills proved invaluable to employees who had not looked for a job for years, and in some cases decades!

Everyone benefited during this difficult time. The company was able to provide a valuable benefit to their former employees and avoided potential lawsuits and bad press. For the remaining employees, though the company had to lay-off some of their co-workers, they understood the reasons why and saw that their friends were taken care of by the company. Finally, for the laid-off employees, they received the necessary support and skills to find a new job.

Easing the Trauma
Outplacement can be the key to easing the trauma of an organization’s downsizing. Not providing such services often results in costly lawsuits, increased unemployment costs, damaged morale and lost productivity. For affected employees, it can mean shattered lives, loneliness and desolation. No organization or individual needs to experience that.

Rick Dacri is an organizational development consultant, coach and featured speaker at regional and national conferences. Since 1995 his firm, Dacri & Associates has focused on improving the performance of individuals and organizations. Rick can be reached at 1-800-892-9828, or rick@dacri.com