Still Employed
A lot of companies have made the decision to avoid downsizing through a reduction in employee salaries or realignment of responsibilities. These situations can be just as difficult as downsizing, because the employees worry about the next shoe dropping.
Leaders can do several things to manage these situations:
- Be transparent. For example, telling your staff that revenue is too low will help everyone understand the justification for salary furloughs. They may be upset, but they’re likely to be more grateful about having jobs.
- Be honest. If the cuts aren’t over, don’t say that they are. Tell your people that for now things have stabilized, but xyz needs to happen in order to turn the tide.
- Be sensitive. When certain jobs are realigned and de facto demotions occur, do what you can to reassure these employees. These people are hurt and embarassed, and as the leader, you set the tone for dignity and respect.
