The dedicated, consistent, tenacious pursuit of winning through people and culture.
The changes you are making today to your workforce need to be strategic, not reactionary, with an eye to the future. Times are tough, but there are opportunities to reevaluate your organizational structure, make changes that align to both your short- and long-term goals, and position for the recovery that is on its way. For the next two weeks, I am offering a blog series based on 25 years of extensive HR, talent management and staffing experience all grounded in the foundation as an ex-athlete to give you a roadmap to position you to win.
DEFEAT THE DOWNTURN AND WIN THE RECOVERY
- Part 5: Measure Twice, Cut Once
The topic of workforce reduction is never an easy one – especially when it is being used as a cost cutting measure rather than one based only on performance. But sometimes you must be lean and let people go. If that is your situation in this tough reality, be certain you have gone through the process of wisely choosing your winners, communicating their significance and surrounding them with support. You need them secure in their role and longevity.
Because the next step is tough. You need to reduce your employees to the number you can support during the entire time of reduced revenue. The number one rule for making this cut to your workforce is: DO IT ONCE.
The second people begin to be laid off, fired or the newly popular “furloughed,” everyone left behind gets nervous. They worry what that means to the future of their own careers and the direction of the company. It is essential for a company to communicate as transparently as possible during a staff reduction to assuage people’s concerns that the change is not a sign to panic. That the move is a necessary adjustment to the turbulent winds of the situation and the company is now heading in the right direction. Employees need to move forward and begin the “I’ve made the cut” healing process without having to worry about the new round of terminations.
You have heard the saying measure twice and cut once? It is true for human resources as well. A series of cuts is much worse than one big one. I believe in this “one time cut” rule to the point that my recommendation is, if you are unsure of your ability to sustain your reduced staffing level, go one step further to get extra lean. It is always easier to add new hires to an engaged workforce than to have your entire group continually unsure and afraid because of second and third rounds of cuts.
That’s because one cut is considered an adjustment. A series of cuts is considered erratic behavior. And anything that is erratic cannot be trusted. Once you lose faith and trust in a company, you damage your culture which has long-term implications. It’s relatively easy to build back into a culture where there is loyalty and a belief in the vision. Once you have rattled that culture by the continuation of cutting, its difficult to fully restore it.
The good news is that you can make one cut without damaging your culture. And if you do it right, it is absolutely possible to have a major shift in the composition of your team and come out the other side stronger and more aligned.
The Xtra Point*
"Coach Alvarez took over the Wisconsin Badger football program in January of 1990. He had a new vision for the team that didn’t involve many of the individuals on the team at that time. The first off-season with him as a coach was an insanely grueling few months that resulted in 25 players walking away from their scholarships. However, those of us remaining were fully committed, dedicated to the new vision and completely confident we had earned a spot on the team. We believed in the culture that was created and knew we were headed in a new direction. Even though it was a difficult time, it was an integral part of becoming a winning team and champions of the Rose Bowl a mere four years later."