Find out how good HR can help during periods of economic slowdown.
The emerging economic slowdown has sparked a need for small to medium-sized businesses to focus more closely on all aspects of their operations including their human resources.
What can you do?
It's critical to monitor employee engagement, productivity and effectiveness more closely than ever and implement strategies to realign employees' focus on behaviours and work practices that deliver efficiency gains, cost reductions, retain customers and secure sales.
Communication is the key.
More than ever, during a market downturn, everyone in the company needs to be aware of where the dollars are coming from and how the company is faring.
Dispel any rumours. Maintain a calm and confident presence.
During tough times managers and business owners should make a point of being accessible and highly visible to both reinforce the goals and guide the team. Confident leaders holding staff meetings and attending company events will demonstrate that there remains clear purpose and direction for the business. Ensure you or your managers can answer questions that might come up about the businesses' operations.
Should you identify a need to reduce staff, ensure this is handled in such a way as to cause minimal disruption to the Company. Remember that employees may feel insecure; it's a tough time for many. How redundancies are managed has a big impact on morale and productivity. A poorly managed redundancy process can cost your business. Getting it right is essential.
Having a clear communications plan in place is essential to help limit the adverse impact.
Communicating the bad news about redundancy is difficult and can be badly handled. Faults range from being brutally abrupt and painting a very negative picture to being too vague and painting too optimistic a picture. Business owners and senior managers need training to handle redundancies with clarity and understanding. For all parties, notice of redundancy and consultation should be communicated as two distinct stages. Consultation should include discussion about alternative work and practical support. Communication channels need to be clear to all concerned.
The communications plan can broadly be regarded as having three phases:
Step 1 - before going public:
- Discuss with as few staff as possible
- Examine alternatives
- Review precise business position
- Ensure legal, financial and communication and timing plans are in place
- Prepare final pay calculations
- Have communication plans, to address rumours and leaks, in place
- Review all stakeholders communication needs
Step 2 - Notify affected individuals
- Prepare script for managers to discuss with those affected
- Provide support and options for these staff
Step 3 - Communicate with the entire company
- Communicate the situation to the entire company through meetings
- Be mindful of the message you are sending to your employees
- The message must be transparent, clear and concise (versus wordy and indirect)
- Use carefully selected terminology - "restructuring" or "rebuilding" are a better choice of words than "downsizing" or "cost cutting"
Your HRmanager can assist in guiding you to deliver this information; informing you of any redundancy payment obligations and providing assistance in determining your company's needs. For clients of Your HRmanager Retained Employer Advisory Service a template confirming the redundancy decision is now available for download from the Your HRmanager Online Library.