by Mike Gomez
Well, it was just a matter of time before this topic came up. Even the best run companies -- those that plan well, hold their people accountable and make prudent investment decisions -- may still have to resort to "downsizing" as a means to stave off unbearable financial losses. The topic I would like to discuss here is how best to reallocate tasks and responsibilities to those who remain.
I know of two Fortune 500 companies who, because of slumping sales, were forced to lay off a number of their sales team. They told those who remained they were expected to service not only their original clients but also a portion of the clients previously serviced by those who were let go. No expectations were changed with regard to the quality of work, number of sales calls or internal reporting, and no pay adjustments were given to these remaining salespeople. Does this sound familiar? It is by far the most common approach taken by most CEO's and, in my opinion, one of the worst.
So, what is the "right way"?
Have a plan and communicate it. Be honest with your workforce. Let them know the real story and share with them your plan for survival and recovery. Your employees are more perceptive than you think and are more likely to embrace your request for sacrifice if they know you have a plan. By doing this, you instill confidence as their leader, but, more importantly, you set the finish line or timetable for when things return to "normal. " Like distance runners who understand the importance of pacing and the timing of their "kick" to the finish line, your remaining employees can and will increase their pace as long as they know where that finish line is.
Be respectful and realistic. It is neither respectful nor realistic to tell someone that he must fulfill his 40-hour assignment and that of the laid-off employee(s) with no adjustments to expectations or duties. Prior to any lay-off, take the time to analyze work expectations and decide what tasks are "must have" versus "nice to have." Eliminate those you can, so the remaining employees will concentrate on the important duties.
Finally, acknowledge their "sacrifice." Let them know how much you appreciate them stepping up to the plate to take on the additional work (typically with no additional pay or benefits). Encourage them (and be sincere about this) to come to you if the burden gets too difficult. This will ensure you have the opportunity to move work assignments around, or take other measures to adjust workload, before your customers or the internal operation is under-serviced.
Mike Gomez is the founder of Allegro Consulting, is a business growth specialist. He has served as a program management and business development executive in both Fortune 500 companies as well as small businesses. Gomez can be contacted by phone at 678-908-8433 or by e-mail.
