And, while downsizing may be necessary for a company to cut costs or improve profitability, its effects are always felt by the remaining employees. This can lead to decreased morale, increased workloads, and a negative impact on productivity and engagement. But as Ian Moore of HR Consultancy Lodge Court, writes, it is possible to avoid the potential negative impacts of downsizing, and boost productivity and engagement instead.
Here's how.
Plan ahead and communicate clearly
The first step to downsizing a department is to plan ahead and ensure that everyone is on the same page. Communicate openly and honestly with your employees about the reasons behind the downsizing and what you hope to achieve through it. Make sure your employees understand that the decision is not a personal attack on anyone, and rather an essential measure for the growth of the overall organisation.
Address remaining workforce issues
It is almost inevitable that remaining employees will face challenges such as increased workload, uncertainty and lack of clarity around new roles and responsibilities.
As such, it is important to address these issues with an empathetic approach. Understand by listening actively to concerns and providing guidance as necessary. Consider offering support services such as employee assistance programs (EAPs) or flexible working solutions. This support system will provide your workforce with the necessary foundation to focus on their work, improve their productivity, and stay engaged.
Streamline processes and procedures
Downsizing can also be an opportunity to simplify and streamline processes and procedures, making your organisation more efficient and productive. Evaluate your current workflows and identify areas where you can eliminate unnecessary steps, reduce waste, and optimise resources. By doing this before the responsibilities are handed out to the remaining employees, you can avoid any unnecessary overwhelm.
Reassign responsibilities carefully
Give careful consideration to how roles and responsibilities are assigned. By basing them on employees’ strengths and skills, you should motivate them to take ownership and work more efficiently.
Consider employee development
One of the most overlooked aspects of a downsizing process is the development of the remaining employees. You’re giving them more responsibilities so you should also provide them with the training to work more efficiently!
Identify the skills required for the remaining employees to be successful in their new roles and set up training programmes to support them to develop their abilities and knowledge. This investment makes their skills marketable and relevant, which can positively impact their morale and motivation.
Thinking longer term, reward their hard work and commitment by promoting from within when possible and recognise good work. This will help you to maximise the potential of your workforce, ensure that they feel valued, and improve their engagement.
Encourage more face-to-face time
In an age where virtual meetings and emails dominate communication, face-to-face time can often be overlooked as a vital tool for employee development and engagement. And, when a department is downsized, the importance of face-to-face time becomes even more pronounced. Encouraging employees to spend time with each other, whether that be through team building exercises or casual check-ins, can help those who remain feel valued, connected and supported.
Celebrate milestones and small wins
It’s essential to celebrate milestones and small wins during this transition period as it will help employees feel valued for their contribution, and the morale of the team should increase. Take time to recognise individual efforts, team accomplishments, and thank them for their contributions. Share how the downsizing has positively affected the organisation, and how it has led to a more focused and productive workplace.
Evaluate and refine
Keep track of morale and productivity levels throughout the process and make adjustments as necessary. Use employee feedback to fine-tune your strategy and approach. Creating a leaner, tighter workforce isn’t a one-off exercise, employee engagement continues to be an ongoing exercise as changes occur within your organisation. Being proactive, flexible, and responsive is essential.
The impact of a downsizing can be tough on morale and productivity, but it doesn’t have to be negative. By following these practices, you can make a leaner organisation more effective, productive, and engaged.