Ten Tips For Downsizing with Grace in Difficult Economic Times

[Gireesh Kumar Sharma]

Difficult economic times call for tough calls, and, downsizing is one of the toughest calls that leadership and HR have to take. Though downsizing is the most hated task and nobody wants to do it; it is a necessary evil for saving a company from an economic collapse.

With little efforts organizations can minimize the effect of downsizing on economy and employees to a some extent. Here are 10 tips that one can consider while downsizing:

1. Do a manpower analysis before you Downsize!

Think twice, do you really need to vacate those seats and happy faces. Do not make subjective decisions!

Work and re-work on your manpower requirements - for today and for tomorrow. A good manpower planning software can assist you and your mangers to accurately assess your manpower requirements.

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[Saravana Kumar]

Hi Girish,
Nowadays, we frequently use to hear the word, “lay-0ff, downsizing, economic meltdown, bankrupt, recession”. Everyone has the question, why employer has top priority on downsizing the employees?
Is the way to tackle the economic crisis of reducing employee’s payroll?
Why can’t management people use to think on other side to reduce the cost cutting measures on onsite travel, recreation on star hotels, electricity maintenance, Company infrastructure, booking flight tickets on economic class other than business class?
Girish, thanks for sharing and keep posting such nice articles.

Thanks,

saravana
[e-mail]

[Gireesh Kumar Sharma]

Hi Saravana,

It is true that no organization wants to go for downsizing. Instead every organization wants to grow (read hire more employees) and make profit. However, when companies do not have sufficient funds to pay employee salaries, they find it better to ask employees to leave and look for opportunities elsewhere, which is good for employee and organization both.

Its bad, but its the way it should be.

[Saravana Kumar]

Hi gireesh,

well said , acceptable one.

Thanks,

saravana

[N.S.Krishnan]

As readin many articles, downsizing is a double edged sword. When it saves a lot from the financial perspective, it erodes a lot from qualitative perspective like employee happiness, loyalty, corporate image etc.,

Regards
Krishnan
http://www.upraisehr.blogspot.com/