Sustainable people management, also in tough times
21 juni 2009
A first question is: is it smart to lay off many people for the short term? Should we now panic and continue with mass lay-offs? What should we do, when at the same time we receive positive signals of economic recovery in the end of 2009 from the OECD? Even if we in the Netherlands see the recovery somewhat later, mass lay-offs are still a short term solution. In a year or two, when the world seems a bit brighter, organizations will need talent to stay competitive. Mass layoffs are not the sustainable solution in this case. But sometimes, it is inevitable that organizations have to take drastic measures to stay alive in these rough times. Then a second question is: in what manner to lay off people?
Ideally, organizations are honest and transparent to employees about what is happening in their organization. Not only in the case of mass layoffs, but also with individual layoffs in the case of a (sudden) reorganization. It should not be the case that in the beginning of the year, employees hear that there will be reorganizations, and people will be laid off without information about when, who and how(many). But during the year, one at a time, employees are sent home. It is essential that companies have a strategy along which they manage this part of their people business. And it is important to clearly communicate this strategy with employees. It should not look like a random selection to them. If he is leaving, why shouldn´t I be next? And the outcome has to add value to the overall strategy of the company. Is the company firing the right person or the one the manager of a department likes the least? So also in these fast and pessimistic times: take the time to define a clear strategy for the people side of the reorganization and be transparent about what you do. It will never be a pretty assignment to lay off people, but it can be done with dignity, respect and integrity.
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