As some sectors of the global economy are recovering from the financial crises that erupted in 2007, others continue to struggle. Recently the British steel industry issued a hard-hitting reminder and announced that more than one in six workers will lose their jobs. Companies of all sizes continue to be faced with tough decisions, often resulting in cutting jobs to reduce overheads. However, redundancies often bring a new set of difficulties for senior managers and CEOs.
In this situation, your main task is to keep your remaining employees motivated and ensure that they receive the necessary support to do their jobs well.
While often seen as a negative, reducing staff also offers organisations opportunity for change. If managed effectively, redundancies can result in more efficient processes, stronger leadership and happier employees.
Too often redundancies result in nothing more than reducing the workforce and saving the related costs. If the existing workload continues without restructuring, this will result in your remaining employees being over-worked and stressed.
Your corporate strategy and goals will need to be adapted to manage and truly take advantage of the reduction in your workforce. The reorganisation can only be successful, if you have a strategy in place before the process is started. This involves evaluating the essential processes, workload and manpower before laying people off.
The strategy cannot be reactive, it must be visionary.