Canadian HR Reporter

CANADIAN HR REPORTER OCTOBER 2019 FEATURES 25 OUTPLACEMENT Focusing on people key to successful restructuring Manage the process in a well-planned fashion that is dignified and respectful By Corey Daxon S tatistics Canada reported unemployment at a new four-decade low earlier in 2019. So, why are large restruc- turings still happening? Significant economic and mar- ket forces including automation, artificial intelligence and global trade are forcing Canadian com- panies to face one of the most painful decisions an organiza- tion can make — a corporate downsizing. As organizations struggle with this decision, the first question asked should be "Do we really need to do this?" Large layoffs negatively affect stock prices, reduce profitability and result in a significant decline in survivor job performance, ac- cording to a the 2018 Harvard Business Review article "Layoffs at Don't Break Your Company." Organizations fared much bet- ter when they were able to avoid the "quick" solution of downsizing by implementing employee train- ing, coaching, skills development and role re-assignments. More employers are creatively finding ways to make longer-term investments with existing em- ployees, outweighing the short- term financial gain of layoffs. Making the move If it is determined that an orga- nization has to proceed with a large restructuring, managing the process in a well-planned, organized fashion that is dignified and respectful of the people being impacted is key. Striking a balance between be- ing overly process-driven versus being too empathetic is vital in preparing for the discussions. It is important to remember that those being impacted were at one point hired by the organization, trained by the organization and contributed to the business. How this process is handled will impact the reputation of the com- pany, its leaders, management and the well-being of both survivors and impacted employees. While every scenario is unique, the following steps are valuable in preparing for the termination day: Step 1: Plan, plan, plan e early involvement of execu- tives, HR and the legal depart- ment in the creation of an activity plan is a must. ere are an in- credible number of moving parts in this process. While surprises are bound to happen, a well- thought-out plan will help ensure consistency in messaging, activity flow and timing while focusing on the most important aspect of the day — preserving the dignity of impacted employees. Larger projects can be over- whelming from a resourcing standpoint, so consider using a career transition firm in help- ing with both the planning and implementation of the day. Avoid round after round of smaller layoffs in favour of a single-day activity. Employer brand, employee morale and productivity are hit harder with three layoffs in one year versus a one-time event. A meeting in advance to pre- pare managers with key messag- ing and process overview, and to equip them on how to deal with emotions involved, including their own, can be incredibly help- ful. Layoffs are difficult for man- agers as well. If a manager finds the process easy, they probably shouldn't be managing people. Regarding timing, early morn- ing is better than late afternoon. Impacted individuals will be able to arrive home and access any support required immediately, prior to the end of a business day. Step 2: Delivering the message Large group terminations typi- cally are delivered in one of two ways — an announcement to the group or one-on-one discussions with HR and the manager. By far the best way, when resources allow, is to deliver the termina- tion message to each individual separately. While this is a group being im- pacted, for each individual, this is a very personal process and every- one will react differently. Dealing with someone one on one is the most respectful way to deliver this difficult message. It allows a person to deal with emotions and reactions in a pri- vate, confidential setting rather than in front of a large group of peers. When properly planned, most employers can create a schedule to allow one-on-one discussions to take place. Adding resources into the process by involving support from a career transition firm can significantly increase the number of people who can be met with individually. If the message has to be deliv- ered to a group, it should quickly be followed by individual meet- ings throughout the day to ad- dress everyone impacted one on one. Step 3: After the message is delivered When multiple people are being impacted, many organizations avoid having a person walk back to their office to gather their be- longings and instead choose to have a person's immediate items (such as their keys, coat and wal- let) brought to them. is avoids the embarrassment of conducting a "clean-out" in front of peers and helps prevent emotions from spilling out at a dif- ficult time. Another best practice is allow- ing an individual to keep their company phone for a short pe- riod of time. Despite being com- pany property, many people use these devices as their primary communication device. Disabling company email while still maintaining the "phone" portion of a device lets someone have a means of com- munication until they can secure an alternative. Lastly, having a career transition firm onsite for support is standard practice. Career-transition coun- sellors are trained in dealing with the emotions involved in these situations, and they can help indi- viduals with short-term strategies around family communications, managing their leaving story and providing a sense of well-being by demonstrating that support is available. Step 4: Support after the termination How a company handles the situ- ation will be closely watched by both impacted individuals and survivors, and it will impact an organization's reputation. Leadership should deliver a clear message to survivors about the changes that took place and what the future strategy looks like. Career-transition support should be provided to outgoing individuals with a focus on one- on-one individual support. When layoffs have to occur, the focus should be totally on the people. Impacted team mem- bers are people with families who contributed to the company and should be treated with respect. Doing a lot of small things right through the process can protect reputations — both per- sonal and corporate — and will be remembered. Corey Daxon is president of Feldman Daxon Partners, a national provider of career transition, coaching and ex- ecutive search in Toronto. He can be reached at cdaxon@feldmandaxon. com or (416) 515-7600 ext. 235. GET LISTED IN THE HR VENDORS GUIDE Visit hrreporter.com/hr-vendors-guide HR Professional Development Description: Faccaerio. Name volore pre et atur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest que ventust qui re volorum quatat. Ed et aut aut harunt aut fugitata iur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest volorum quatat. Training and Development Description: Faccaerio. Name volore pre et atur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest que ventust qui re volorum quatat. Ed et aut aut harunt aut fugitata iur. Cerumqui consedi seraectis eos magnisi nvenihi lliquist qui accum de pres experis testior eperest volorum quatat. 123 Queen Street Suite 101 Toronto, Ontario M1P 1M1 Canada Phone: (416) 111-2222 E: Info@companyname.ca www.website.ca Company Name Group Insurance Providers Company Logo Credit: By Martial Red (shutterstock)

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