Have a Communication Plan for an Employee Downsizing

Obviously, there is no 100 percent pleasant way to communicate the need for downsizing (AKA reduction in force or layoff). But with a bit of thought and preparation, it can be communicated efficiently and respectfully. 

This is one of the common mistakes I see employers make—they don’t have a communication plan, or may be deficient in their employee communication generally. 

Another mistake that happens on occasion is that companies don’t give much consideration to who is going to be downsized and why. When the layoffs occur, people are confused, surprised, angry or a combination of these and experience other strong emotions. Communication regarding the business, its goals and objectives should lead to realistic performance measures and goals for employees, which should create a better overall understanding of how the business operates and how the employee’s performance affects overall performance. Then, when employees are chosen for downsizing due to performance, this information has already been candidly shared with the employee. 

On the other end of the spectrum, it can be harmful to “over-explain.” Although the company is making a good effort to keep employees involved and has good intentions in trying to be compassionate and explain why things are happening, the company tends to focus on apologies and/or engage in speculation, creating expectations that may not materialize or creating mixed or confusing messages.

Fortunately, you can still develop a plan to better communicate to employees during the downsizing that gives just the right amount of information. 

Action Steps

It’s very important to spend as much time as possible on the decision-making process that took place prior to the downsizing. I think it’s important for companies to make every effort to find ways to be more cost-effective, or to get ideas for ways to retain clients or get more business, etc. Reaching out to employees in this process in an effort to gain their assistance can be an important way to provide information, in a way that’s organized, direct and minimizes the negative impact of rumors and speculation. 

Ample advance consideration may very well limit the impact of the downsizing in terms of the number of people who are laid off. I think it’s important that every effort be exhausted prior to deciding on a layoff. 

Once a decision is made to conduct a layoff, however, that’s when you need a more specific communication plan in place. 

A communication plan needs to involve: who tells the employees, what the message will be, if there will be any severance packages, how benefits will be affected, what will be communicated by managers, etc.

These items need to be carefully considered—and quickly. 

You want to make sure your plan anticipates all questions that might be asked, and this requires some advanced planning. 

Also, there can be some legal repercussions if you don’t communicate things in the right way. 

For example, if your employees are spread throughout the country, there may be different requirements in each state when it comes to communicating the layoffs to employees. New York, for instance, just passed a law that requires employers of 50 or more employees to communicate their layoffs in advance. 

Advance notice—if you can give it—is helpful to employees who are being laid off. That way they have some time to start accepting the situation and find a new job. Productivity rates won’t be as high as you’re used to, but at least you will know this ahead of time, as well. 

All the above-mentioned items are very important when it comes to creating your communication plan for an employee downsizing. 

Note: This Insight is intended as general information only. Employers are encouraged to seek legal counsel whenever planning to conduct a reduction in force or layoff in order to comply with any applicable federal and/or state laws.

You can develop a plan to better communicate to employees during a downsizing that gives just the right amount of information.