 "Before and after")
More often than not, organisations under-estimate the negative effects of downsizing and do not take into account the difficulties of motivating a surviving workforce emotionally damaged by watching others lose their jobs. How real is the issue of survivor syndrome? What steps should companies take to maintain employee morale during uncertain times?
"Increase the level of engagement"
Survival is mastering the art of adaptation. There are two perspectives to survival: the employers and the employees. And the common belief is that one's survival comes at the expense of the other.
In trying economic conditions, employers want to keep it lean. In fact, there is not much one can do to keep employees engaged in projects and brainstorming for the future, which in itself seems uncertain. Redundancy is inevitable in such a situation.
From an employee's perspective, especially for someone who has been spared the pink slip, the psychological pressure is immense. They are in a constant state of anxiety. None of this can actually help the employers who wanted to be 'leaner' and 'fitter'.
Unlike in the past, the only difference this time is that we are experienced - "we" as in employers, "we" as in employees. Less than five years ago in 2009, we had seen a similar situation, but what we can do differently this time is make peace with two facts: one some jobs will go and some will survive. Second, the best remedy is communication and engagement.
Communication and the level of engagement between employers and employees can actually challenge the theory that one has to survive at the expense of the other. Employers should openly, honestly come out and communicate. Increase the level of engagement through frequent reviews and meetings.
All of this would help both survive hand-in-hand. Line managers should share the daily progress with their teams. Nothing helps healing more than progress and growth. It's best to utilise such slowdowns as opportunities to reinvent the future.
On the other, employees could actually take the initiative of grabbing more responsibilities. While there is no guarantee, it, at least, ensures that there is constant skill upgradation.
"Build capability for uncertain times"
Survival syndrome is usually the aftermath of downsizing-related layoffs. During this phase, organisations fail to understand that damage control measures should be taken before handing out pink slips. The first thing is to get the communication right. Openness and transparency will go a long way in making the exercise more credible. Next, this exercise should be perceived as unbiased and fair. The way a company handles different crisis situations irrevocably shapes its corporate identity and this is recorded from time to time.
Employees who remain in a company once layoffs are over have low morale. Research shows clearly that the human consequences of layoffs are costly and particularly devastating for individuals, their families and entire communities. When this happens, only a mentoring programme spearheaded by the HR department in association with seasoned professionals in a company can instill confidence in those who are left behind.
Since employee downsizing is a business decision, there must be a standard procedure every time such situations arise. Bad news travels faster than good news. This makes it even more difficult for the HR department to execute employee downsizing.
In the current scenario, job security is a major concern for a large section of the workforce. One of the upsides of an economic downturn is that it brings 'employability' into the big picture. As part of its long-term employability strategy, a company can invest in people for building capability for uncertain times. While some companies are taking baby steps in this direction, these efforts are futile due to lack of an adequate structure.
A company's employability strategy rests on two areas: specialisation and versatility. One may say that a company should hire more skilled labour in the heydays so that it can rely on them during a downturn. But there's an irony. India is still facing skill shortage. For instance, Industrial Training Institutes in the country are not able to meet the workforce demand in the automobile sector. Left with little choice, companies have to invest in training. At the same time, it's crucial to encourage versatility within the organisation allowing some part of your workforce to multi-task.
The most important lesson for companies is to keep it lean in both good and bad times. We do this by involving the HR department right at the resource planning stage. In several instances, we have discouraged business heads from adding extra numbers in their respective verticals. Besides, firms should make an effort to maintain friendly relations with laid-off victims. Modern-day technology, including the internet forums, 24x7 hotlines, e-mails, and mailings offer effective ways to foster and sustain positive employer-employee relationships.
"Be fair and assertive"
During slowdown, employee downsizing results in decreased morale, motivation, organisational commitment and engagement and thus affects performance at work.
This reality has been under-acknowledged in the Indian corporate context due to a number of reasons. The most important one is that for a long period of time, the economy had been growing at roughly 6 to 8 per cent year-on-year and hence job creation always exceeded job losses. This scenario has changed post 2008 and now Indian workforce and companies are witnessing the slowing down of job creation and the loss of jobs at a higher pace.
Appropriate communication is the only known silver bullet that can tame the survivor syndrome. A company considering downsizing should clearly communicate with the employees why the restructuring is needed and how the saved-costs will be invested in revenue earning functions /processes, so that the company comes out of the rut and drives towards growth and profitability. The most effective communication methods are general staff meetings and briefings by line managers. Those at the helm of affairs should offer regular feedback and encourage the staff to share their concerns.
Another important element is reiterating the fairness of the decisions. Decision makers should try to establish trust and engagement by ensuring transparency in the steps taken. They (the survivors) will show more commitment to the organisation when they feel that those who got the pink slips were given a fair treatment.
The remaining workforce should be 'mentally preoccupied' with the recovery process and the excitement of the challenge rather than being left to be 'bystanders' to what others are doing/not doing. Next, there should be flow of positive energy and initiative from the leader and the overall atmosphere should be one of trust to keep the workforce motivated. It is also the best time for the organisational leadership to send the employees for customer visits, developing new customers, engaging with suppliers to improve the latter's productivity and competitiveness, improve training that is directed towards business results.
After all, a crisis should never go waste. It is the best time for the leaders to capture the imagination of the workforce, to 'build muscle' for which the workforce might not have had the luxury in good times.
"Increase the level of engagement"
Survival is mastering the art of adaptation. There are two perspectives to survival: the employers and the employees. And the common belief is that one's survival comes at the expense of the other.
In trying economic conditions, employers want to keep it lean. In fact, there is not much one can do to keep employees engaged in projects and brainstorming for the future, which in itself seems uncertain. Redundancy is inevitable in such a situation.
From an employee's perspective, especially for someone who has been spared the pink slip, the psychological pressure is immense. They are in a constant state of anxiety. None of this can actually help the employers who wanted to be 'leaner' and 'fitter'.
Unlike in the past, the only difference this time is that we are experienced - "we" as in employers, "we" as in employees. Less than five years ago in 2009, we had seen a similar situation, but what we can do differently this time is make peace with two facts: one some jobs will go and some will survive. Second, the best remedy is communication and engagement.
Communication and the level of engagement between employers and employees can actually challenge the theory that one has to survive at the expense of the other. Employers should openly, honestly come out and communicate. Increase the level of engagement through frequent reviews and meetings.
All of this would help both survive hand-in-hand. Line managers should share the daily progress with their teams. Nothing helps healing more than progress and growth. It's best to utilise such slowdowns as opportunities to reinvent the future.
On the other, employees could actually take the initiative of grabbing more responsibilities. While there is no guarantee, it, at least, ensures that there is constant skill upgradation.
Rituparna Chakraborty
Co-Founder, SVP, TeamLease Services & Vice-President, Executive Board, Indian Staffing Federation
"Build capability for uncertain times"
Survival syndrome is usually the aftermath of downsizing-related layoffs. During this phase, organisations fail to understand that damage control measures should be taken before handing out pink slips. The first thing is to get the communication right. Openness and transparency will go a long way in making the exercise more credible. Next, this exercise should be perceived as unbiased and fair. The way a company handles different crisis situations irrevocably shapes its corporate identity and this is recorded from time to time.
Employees who remain in a company once layoffs are over have low morale. Research shows clearly that the human consequences of layoffs are costly and particularly devastating for individuals, their families and entire communities. When this happens, only a mentoring programme spearheaded by the HR department in association with seasoned professionals in a company can instill confidence in those who are left behind.
Since employee downsizing is a business decision, there must be a standard procedure every time such situations arise. Bad news travels faster than good news. This makes it even more difficult for the HR department to execute employee downsizing.
In the current scenario, job security is a major concern for a large section of the workforce. One of the upsides of an economic downturn is that it brings 'employability' into the big picture. As part of its long-term employability strategy, a company can invest in people for building capability for uncertain times. While some companies are taking baby steps in this direction, these efforts are futile due to lack of an adequate structure.
A company's employability strategy rests on two areas: specialisation and versatility. One may say that a company should hire more skilled labour in the heydays so that it can rely on them during a downturn. But there's an irony. India is still facing skill shortage. For instance, Industrial Training Institutes in the country are not able to meet the workforce demand in the automobile sector. Left with little choice, companies have to invest in training. At the same time, it's crucial to encourage versatility within the organisation allowing some part of your workforce to multi-task.
The most important lesson for companies is to keep it lean in both good and bad times. We do this by involving the HR department right at the resource planning stage. In several instances, we have discouraged business heads from adding extra numbers in their respective verticals. Besides, firms should make an effort to maintain friendly relations with laid-off victims. Modern-day technology, including the internet forums, 24x7 hotlines, e-mails, and mailings offer effective ways to foster and sustain positive employer-employee relationships.
Rajeshwar Tripathi
Chief people officer, automotive & farm equipment, M&M
"Be fair and assertive"
During slowdown, employee downsizing results in decreased morale, motivation, organisational commitment and engagement and thus affects performance at work.
This reality has been under-acknowledged in the Indian corporate context due to a number of reasons. The most important one is that for a long period of time, the economy had been growing at roughly 6 to 8 per cent year-on-year and hence job creation always exceeded job losses. This scenario has changed post 2008 and now Indian workforce and companies are witnessing the slowing down of job creation and the loss of jobs at a higher pace.
Appropriate communication is the only known silver bullet that can tame the survivor syndrome. A company considering downsizing should clearly communicate with the employees why the restructuring is needed and how the saved-costs will be invested in revenue earning functions /processes, so that the company comes out of the rut and drives towards growth and profitability. The most effective communication methods are general staff meetings and briefings by line managers. Those at the helm of affairs should offer regular feedback and encourage the staff to share their concerns.
Another important element is reiterating the fairness of the decisions. Decision makers should try to establish trust and engagement by ensuring transparency in the steps taken. They (the survivors) will show more commitment to the organisation when they feel that those who got the pink slips were given a fair treatment.
The remaining workforce should be 'mentally preoccupied' with the recovery process and the excitement of the challenge rather than being left to be 'bystanders' to what others are doing/not doing. Next, there should be flow of positive energy and initiative from the leader and the overall atmosphere should be one of trust to keep the workforce motivated. It is also the best time for the organisational leadership to send the employees for customer visits, developing new customers, engaging with suppliers to improve the latter's productivity and competitiveness, improve training that is directed towards business results.
After all, a crisis should never go waste. It is the best time for the leaders to capture the imagination of the workforce, to 'build muscle' for which the workforce might not have had the luxury in good times.
Uday Salunkhe
Group Director, Welingkar Institute of Management Development and Research