Downsizing is one of the most difficult challenges for companies. It is not just about cost savings or strategic realignment, but above all about people, livelihoods and corporate culture.
Mistakes in this sensitive process can have long-term negative consequences: A poor employer image, a damaged working atmosphere and a demotivated workforce are often the consequences. However, with a well thought-out strategy and appreciative implementation, not only can damage be limited, but positive developments can even be achieved. In this blog series, we present the most common mistakes that companies make when downsizing – and show how they can be avoided.
Error 1: Missing or unclear communication
One of the biggest challenges when it comes to staff changes is communication. All too often, employees only find out about planned redundancies at the last minute or even via detours. This leads to uncertainty, rumors and a massive loss of trust – both among the affected employees and the remaining workforce.
The consequences of inadequate communication:
- Rumors and speculation that lead to a deterioration in the working atmosphere
- Loss of trust in the company management
- Increased fluctuation as valuable employees leave the company
- Declining productivity and rising sickness rates
Best practices for successful communication:
- Early and transparent information: Employees should not find out about planned changes through rumors or external sources.
- Honesty and empathy: The workforce has a right to understand why measures are necessary and what impact they have.
- Designate clear contact persons: To prevent uncertainties from escalating, clear points of contact should be created for questions and discussions.
- Develop a structured communication concept: A well-thought-out communication strategy reduces uncertainty, creates orientation and strengthens trust in the company.
VBLP supports companies with targeted advice on the separation process and the professional conduct of separation discussions.
Our conclusion
Downsizing is a sensitive issue that needs to be approached with caution and strategic planning. A lack of or unclear communication is one of the biggest mistakes companies can make. Those who rely on early, transparent and empathetic communication instead will avoid a loss of trust and maintain the motivation of the workforce.
Stay tuned! The next installment of our blog series will focus on individual support for affected employees.
Would you like to prepare for an upcoming restructuring at an early stage? Contact us for a non-binding initial consultation!
