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Organizational Downsizing for Managers

Presented by

CIGNA Employee Assistance Program

Copyright 2008 CIGNA HealthCare – Confidential & Privileged – Not for Distribution

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Seminar Goals

Know the potential reactions of separated employees, remaining employees and managers during a downsizing, and how best to manage those reactions

Learn how to conduct a separation meeting

Learn how to support remaining employees, and minimize adverse effects of downsizing on the organization

Know how the EAP can help separated employees, remaining employees, and managers

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Potential Reactions of Separated Employees

Shock, disbelief and numbness— “I can’t believe this is happening to me…”

Anger—especially in predisposed people

Emotional outbursts—tearful to hysterical

Relief—“I’m glad this is over and I can get on with things…”

continued

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Potential Reactions of Separated Employees (cont.)

Acting out anger in sabotage

Increased doctor visits

Increase in substance abuse

Updating resumes, job hunting, scheduling job interviews on company time

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Potential Reactions of Managers

Fear of employees’ reactions

Anxiety over the separation meeting

Desire to avoid being the “bearer of bad news”

Guilt over being a part of “management”, or the one who made the selections for the reduction-in-force

Feeling responsible for employees’ plight, including potential personal, family and/or financial problems

Anger, sadness and grief over loss of employees

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Potential Reactions of Remaining Employees

Expect the same general reactions from the “survivors” as from the impacted employees

More concern regarding the long-term adjustment reaction

Survivor guilt

Resistance to new procedures, duties and relationships

Complaints about increases in work load

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Possible Costs to the Company of Above Reactions

Lost productivity

Lower morale

Destruction of company property, stealing, defacement, sabotage

Increased medical claims

Employee turnover

Increased risk of violence

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Managing the Risks

Acknowledge company stressors and crisis of uncertainty to employees

Communicate to employees a decisive plan to resolve the problem

Announce required organizational changes early

Inform employees of availability of benefits and assistance

Train managers in managing a downsizing and in violence prevention

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Support for Remaining Employees

Facilitate discussions regarding concerns

Implement retention strategies

Increase awareness of EAP & work/life services

Promote the value of EAP consultation and referrals to managers

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Benefits of the EAP

Confidential

Prepaid

Available 24 hours a day, 7 days a week

Appointment offered within 2 business days

Telephonic consultation available

Household benefit

Child care, senior care, and legal concerns

EAP & Work/Life Services are extended 30 days beyond last day of employment

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EAP Consultation for Managers

Balance the needs of employees who have lost their jobs with those who remain on the job

Assist individuals to effectively manage their feelings and support each other

Understand your own reactions and use the EAP to discuss the challenges of your management responsibilities

Discuss need for an on-site EAP counselor strategically during the reorganization

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Recommitment & Retention Resources

Additional EAP Seminars for Managers:

Stress Management for Managers

Violence in the Workplace

Team-building for Managers

For information about seminars, or assistance in scheduling, please call: 800-241-4057 Ext. 2646 and follow automated prompts

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Recommitment & Retention Resources

EAP Seminars for Employees and Managers:

Managing Change

Personal Resiliency in Challenging Times

Stress and Your Perceptions

The Power of Acceptance

For information about seminars, or assistance in scheduling, please call: 800-241-4057 Ext. 2646 and follow automated prompts

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Pre-notification Steps

Review the business case

Discuss team roles and timing

Review the step-by-step approach to conducting separation meetings (next slide)

Discuss logistics and related challenges

Review benefits, outplacement resources, EAP and work/life services

Address potential safety and security concerns

Rehearse

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Separation Meeting

1. Put person at ease

2. Set the stage

3. Announce the separation

4. Communicate benefits

5. Listen, and offer support

6. Discuss transition details

7. Introduce outplacement specialist

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Step One: Put Person at Ease

Choose appropriate time and setting.

Welcome the individual and make them comfortable.

“Joan/John, please come in and have a seat.”

Keep small talk brief.

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Step Two: Set the Stage

Set the stage in general terms. Express your concern for the department’s future. Some specifics on the situation will provide a helpful context.

For example:

“As you know, John/Joan, our company is under a great deal of pressure to improve earnings. We’ve had to rethink what work is essential and how best to accomplish that work.”

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Step Three: Announce the Separation

Plan and rehearse the statement which announces the separation.

Define the separation clearly and succinctly.

Present the decision as definite and final in a brief statement that may be repeated if necessary.

Present reasons in such a way that they can be clearly understood and remembered.

Remember to show compassion in what is said, and how it is said.

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Step Four: Communicate Benefits

Explain separation benefits and reemployment assistance. These may include severance pay, some continuing benefits, and outplacement services.

A letter outlining the specifics of the separation package is given to the person, who may or may not want to read it right away.

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Step Five: Listen, and Offer Support

Allow time for the individual to react and raise questions.

Handle the reaction with patience and understanding, but return to the theme of getting started on the road to reemployment.

Express confidence in the person and his or her prospects.

“I know this is difficult. I can appreciate how you must be feeling, but I am confident that with the right assistance, you will do fine and will soon be in a good situation.”

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Step Six: Discuss Transition Details

Set a time to meet at a later date to discuss transition of work. This includes:

Handing over the employee’s responsibilities to others

Personal effects

Company property

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Step Seven: Introduce Outplacement Specialist

Give them written information about EAP and outplacement services, so they can read it later

Introduce employee to the reemployment consultant/outplacement specialist, as appropriate.

“The most important things for you to focus on in the next few days and weeks are your career and taking care of yourself. I want you to come out of this feeling good about yourself and making a good career move. That's why I want you to meet with the reemployment specialist right away."

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Notify Security and Human Resources if:

Acts of physical assault and violence

Verbal, physical, or emotional threats

Aggressive and intimidating behavior

Sabotage, vandalism or theft

Behavior endangering the safety of others

Violence at home

Get the facts—find out what was said or done.

Notify company Security and HR.

Consult with EAP about options and resources to support the victim and the workplace.