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How do you begin a process to consider a reduction in workforce? What are some good steps in involving leaders and managers in the assessment process?
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RIWF
posted at 9/28/2010 5:23 AM EDT
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Posts: 1
First: 9/28/2010 Last: 9/28/2010 |
That's a big question. What's the reason for the RIF? Are you reorganizing the business? Is it purely cost containment?
Start with the why behind the desired outcome and you can build your communications and your models and tools around that. My take is that if you come at it the other direction you'll have a tough slog in front of you. |
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RIWF
posted at 9/28/2010 5:37 AM EDT
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Posts: 8
First: 3/15/2005 Last: 9/28/2010 |
Have you already determined the total FTE reduction needed to satisfy the financial 'goal'? You need to begin with the end in mind - What is the $ amount you need to meet? Consider costs associated with the reduction such as legal fees and severance. Once you know how many people or $ of payroll you need to reduce, you need to consider what the criteria is. Much of this needs determined prior to the manager's involvement. You may not be able to save the favorites if you are using non-discriminatory criteria. If you do senority, then some of the high performers could get cut. If you use performance, you MUST ENSURE the criteria is valid and true. Keep a spread sheet of the business reason for the reduction, the criteria, and you also need to meet certain legal requirements such as adverse selection. (run the scenarios before involving the managers) It is hard to include the managers, then say oops, never mind you have to save that person. Need to know from C-level what the severance package will be (be prepared with market data but your projected costs. Don't recommend a ton of severance if the company is financially unable to cover it - you'd look foolish. But if the company can handle the cost, do the projections ahead of time. ALso, determine will there be any career help? WIll you need WARN notice? Will you find similar jobs open to inform the reduced people of potential jobs out there? Does your state have a Rapid Response at the State unemployment office? (Ours provides fantastic packets of how to find jobs, how to deal with the emotional side of lay offs, etc) Do you need the EAP there-(depending on the size of the layoff.) Certainly you will want to meet with the managers to inform them of an impending layoff -but be careful, sometimes they panic and can talk, etc. You need to be firmly at the helm by the time you meet with the managers. I recommend you meet with each manager one on one if possible, especially after a group meeting. Explain the criteria and allow their input as much as possible. IF it is performance, the documentation must support. The most conservative is seniority,then seniority by department, then attendance, then performance, etc. Have on your spreadsheet every detail - from whom talks to whom and at what time, to whom is schedule out the day of the layoff, what is the plan to gather stuff, computer shut down, keys, codes, autos, etc Have it all figured out ahead of time. This is getting way too long. Feel free to contact me if you need any help. Good luck |
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RIWF
posted at 9/28/2010 9:03 AM EDT
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Posts: 1
First: 9/28/2010 Last: 9/28/2010 |
Sometimes it's difficult to involve leaders and managers in a RIF process, especially if you are going to have to let a number of managers go all at once. You may want to survey the workforce to see which ones would be missed the most. |
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RIWF
posted at 9/28/2010 12:55 PM EDT
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Posts: 544
First: 9/27/2004 Last: 9/13/2011 |
Sometimes workforce reductions result in short-term gains with long-term labor woes. This would be a good opportunity to do a skills inventory and identify the gaps between talent and business needs. Examine what skills will be lost and determine how easily they can be replaced. |
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