What Employees Can Help You Solve: Alternatives to Downsizing

This is probably not news to anyone: The downsizing and layoff reports are still coming across the wires. 

Here is some other news, though. Some companies and employees are getting creative and brainstorming about alternatives to downsizing, as reviewed in my previous HRTools.com Insight.  

I know of a business that experienced a devastating and drastic downturn, which also had to do with their financing. They lost their financing, and we all know what’s been going on with that lately. 

The business owners felt forced to make some drastic decisions, possibly even job cuts. So first of all, they announced a meeting for their employees to attend. 

When the employees heard about the meeting, of course, they anticipated that they would immediately learn of a downsizing, and imagined themselves walking out of the meeting and having no jobs. 

Instead, after everyone gathered together, they all started brainstorming for ideas. Many employees had already heard of layoff events, downsizing, etc. happening to their friends and relatives. So, after the shock wore off, and upon learning about the company’s financial position, all the employees started throwing out their ideas. 

For example: 

1. Some volunteered to take temporary layoff roles or early retirement. 
2. One employee had been considering some elective surgery, so after making sure that his benefits would remain in place, he decided to take personal time off to have the surgery. 
3. A team of five employees asked if they could go to a four-day work week; this team further assured management that they would figure out ways to meet their normal production requirements. 

All in all, the employees were committed and motivated to help this business get through this rough patch. They got creative and figured out ways to meet production deadlines, etc., while keeping their benefits intact.  

So instead of management handing out decrees, which would have effectively come across as, “Here is what we have to do, and here is what we have to take away from you,” the employees came up with their own ideas for solutions. And the employees held onto their jobs and benefits. 

It wasn’t just employees who made the sacrifices either. Employees also suggested that the executives cut back on their expenses, such as for traveling or other perks. One brave employee even asked if someone from management could step in and help fill the roles of those individuals who volunteered to take temporary layoff roles.  

Because of their creative and collective efforts, this business did not go out of business. They are still operating, and it was refreshing to see a ‘we’re all in this together,’ kind of attitude take hold. 

My final thoughts about the ‘alternatives to downsizing’ topic are these: 

• Even though you will find many employees in shock over hearing financially distressing news, it helps when employers are forthcoming. While hardly anyone comes out of these experiences unscathed, I see value in people coming together to work through these times. 
• Also, when employees gain an understanding of what is going on, they will better understand and accept the business decisions that may be necessary in order to survive. When employees can go away feeling like that, no matter what the situation is, I think that is probably as about as positive an outcome as it can be.

Some companies and employees are getting creative and brainstorming about alternatives to downsizing.