A Reduction in Force (RIF) is sometimes a necessary part of a merger or shift in business strategy. Although it’s never easy to tell employees their jobs have been eliminated, here are a few questions that can help make the experience better for all concerned.
Although RIFs always involve numbers, those numbers have names, feelings and lives that will be dramatically changed by the business decision that’s about to be implemented. Referring to them as “surplus” or “headcount” does not take the sting out of the job for your notification team. These terms both dehumanize those impacted and ignore the emotional challenges required of your team to structure and implement the initiative.
Companies that implement the most successful RIFs regard those who will be impacted with respect. They refer to them as “employees,” “individuals,” “talent” or “partners,” even when the latter is not their title.
They make sure impacted employees receive unlimited expert career coaching from experienced coaches who meet them where they are mentally, emotionally and in their careers. This helps them retain their dignity, understand their value and move forward with confidence.
The same respect is needed for the implementation team. Be sure to:
If you consistently refer to and treat your people as humans during a RIF, you’ll likely find things go much more smoothly.
Companies may make business headlines when a RIF occurs, but they don’t have to become social media memes or editorial fodder for doing it poorly.
Even if a RIF involves large numbers of people, ambushing employees with pre-dawn emails, or by locking them out of computers or facility gates isn’t efficient or effective. These tactics create reputational and legal risks as well as productivity problems with “surviving” employees, who quickly become distrustful of leadership.
The result? Public relations and media challenges. Reduced morale. Possible lawsuits. “Ripping off the bandage” can result in a hemorrhaging of the talent you hoped to retain as well as costly remediation of the talent you severed.
If a large RIF is needed that is beyond the capacity of your HR team, your managers can be trained to deliver the notification respectfully and compassionately while remaining steadfast to the required business objective.
Training managers can:
Notifications, delivered individually or in small groups, can accelerate the acceptance of severance agreements. This allows employees to begin outplacement services sooner, increasing the likelihood of landing new jobs faster.
These practices also help the friends and colleagues of those impacted by showing that the company “walks its talk” when it comes to caring about both people and profits. A compassionate notification proves that the company supports career development, both during and following employment.
Do you see your Outplacement provider as a cost of service or a trusted partner? A cost of service is out of sight and mostly out of mind. A partner can increase the competency and capacity of your internal notification team in critical ways.
Start by having your notification team work with your provider to align outplacement programs to the job levels of those impacted. Giving everyone the same program doesn’t make the RIF “fair” — it actually makes it unfair to those at higher salary levels or those who may need retraining.
To get the best return for your outplacement investment during a RIF, talk with your provider about the most effective program for each person or impacted job level. For instance, front-line employees often get shorter programs because they tend to land new roles faster.
Do note, however, that if a role is becoming obsolete in the marketplace, more time may be needed for impacted employees to upskill or reskill. More time may also be required for those with special needs or language challenges.
Additionally, for every increase in job level or major salary band step, more time and different resources are needed to land appropriate roles. This is especially true for Executives. Giving them shorter programs without leadership resources doesn’t save your company money, as it ultimately increases spending on unemployment benefits.
Next, realize that a benefit isn’t a benefit if an employee can’t use it. Make sure your impacted employees are reachable to ensure each person is contacted and engaged in conversations with experts from your provider’s enrollment team who can reassure and guide them to next steps.
For that to happen, the contact information you give to your provider must be correct.
Company email addresses and cell phone numbers often become moot within hours or days of notification. Ancient hard-wired home phone numbers that have been in your system for decades have likely been disconnected.
Finally, encourage your team to take advantage of notification support from your outplacement provider. This can include:
Doing a Reduction in Force The Right Way ensures your business can change as it needs to while still growing its ability to attract and retain top talent. This ensures brand value is maintained, regardless of the strategic pivots the company chooses to make.
Remember: a RIF done right helps your company in three significant ways:
Make your next RIF prove that your company is both a great place to work and, if necessary, a great place to leave.