How to Downsize Your Company
Consider the ethics of downsizing., Ask yourself and the rest of the people who run the company what your real reason is for downsizing., Consider cancelling the downsize if the reason for downsizing is because you want to pay less people., Think...
Step-by-Step Guide
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Step 1: Consider the ethics of downsizing.
In some cases, a company has absolutely no choice but to downsize, or it may fail entirely.
In these instances, downsizing is ethical, though it may still create negative feelings within the company.
In other cases, a company’s workforce may have to be readjusted so as to create a more efficient and product company.
Before you downsize, you should take time to consider whether letting go of employees is the right thing to do. -
Step 2: Ask yourself and the rest of the people who run the company what your real reason is for downsizing.
If you are planning on laying people off, you will have to have a reason for doing so that is both ethical and fair.
Ask yourself, why do you feel the need to downsize your company? Is it because the company cannot afford to have as many employees as you currently have? Is it because the workforce has become inefficient, and you feel you need to readjust it in order to create a more effective company? , If your company is suffering an economic crisis, you could be in an ethical position to downsize your staff.
If, however, you have the money to continue to pay your employees, but would rather not pay as much for your workforce, you may want to consider not downsizing, as this particular reason is not entirely ethical.
Think about how downsizing simply to save money will cost you employees who are skilled and already familiar with the policies of your company.
If you let these people go, and then find that you actually do want to pay more people, you will have to train new employees. , Consider your vision of your company’s future.
Planning a layoff involves determining what you want your company to look like and knowing who will help to make that vision a reality.
Where do you see your company heading? What do you hope your company will look like in the next 10 years? , If you have decided that your workforce needs to be readjusted, or that you cannot afford to have as many employees as are currently working at your company, you will need to decide which employees you hope to retain.
What kind of talent do you want to retain to help your company increase profit? What sort of services do you think you will expand after the downsize, and what skills will be needed to expand those talents? Who will be the most helpful in getting your company to head in the direction you want it to go? , The management body of your company is in part responsible for how the company will shape up in the future.
Because of this it is important to include them in your thoughts about where you would like to see your company go, and who you think you will need to get it there.
All of the managers should understand the direction the company is heading, and should have an input on which employees should be retained to see that vision accomplished.
Making sure that the management understands the reasons for the downsizing and the direction you would like the company to go in is important because if they do not understand, the same problems that have led to the downsizing could occur again in the future. -
Step 3: Consider cancelling the downsize if the reason for downsizing is because you want to pay less people.
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Step 4: Think about what you want your company to look like after the downsize.
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Step 5: Determine how you would like to readjust your workforce with the vision of your future company in mind.
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Step 6: Discuss the layoff with the management board.
Detailed Guide
In some cases, a company has absolutely no choice but to downsize, or it may fail entirely.
In these instances, downsizing is ethical, though it may still create negative feelings within the company.
In other cases, a company’s workforce may have to be readjusted so as to create a more efficient and product company.
Before you downsize, you should take time to consider whether letting go of employees is the right thing to do.
If you are planning on laying people off, you will have to have a reason for doing so that is both ethical and fair.
Ask yourself, why do you feel the need to downsize your company? Is it because the company cannot afford to have as many employees as you currently have? Is it because the workforce has become inefficient, and you feel you need to readjust it in order to create a more effective company? , If your company is suffering an economic crisis, you could be in an ethical position to downsize your staff.
If, however, you have the money to continue to pay your employees, but would rather not pay as much for your workforce, you may want to consider not downsizing, as this particular reason is not entirely ethical.
Think about how downsizing simply to save money will cost you employees who are skilled and already familiar with the policies of your company.
If you let these people go, and then find that you actually do want to pay more people, you will have to train new employees. , Consider your vision of your company’s future.
Planning a layoff involves determining what you want your company to look like and knowing who will help to make that vision a reality.
Where do you see your company heading? What do you hope your company will look like in the next 10 years? , If you have decided that your workforce needs to be readjusted, or that you cannot afford to have as many employees as are currently working at your company, you will need to decide which employees you hope to retain.
What kind of talent do you want to retain to help your company increase profit? What sort of services do you think you will expand after the downsize, and what skills will be needed to expand those talents? Who will be the most helpful in getting your company to head in the direction you want it to go? , The management body of your company is in part responsible for how the company will shape up in the future.
Because of this it is important to include them in your thoughts about where you would like to see your company go, and who you think you will need to get it there.
All of the managers should understand the direction the company is heading, and should have an input on which employees should be retained to see that vision accomplished.
Making sure that the management understands the reasons for the downsizing and the direction you would like the company to go in is important because if they do not understand, the same problems that have led to the downsizing could occur again in the future.
About the Author
Maria Coleman
Specializes in breaking down complex home improvement topics into simple steps.
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