Root Step 10- Final decision on Staff Requirement:

This is part of a series of posts I wrote in October 2008 concerning the arrival of the Global Recession...


Root Step 10- Final decision on Staff Requirement:


The crucial decision for any organisation is always regarding the cutting of jobs. But here, I have given this the last priority because if the above steps are followed as mentioned, then by the time you reach the 9th step your door to a smooth business operation in this crisis situation is wide open and you need not even think of making this kind of a decision. You still have your employee family with you. But one in ten, if you still happen to find yourself in a situation where you have to go forward with this decision, then please do it with utmost respect.

Like I said earlier, unless not in a one day emergency, first give a 6 months’ notice period to the staff in those positions which you feel has to be removed from the company. No biased decisions please. Conduct a performance appraisal based on the actual performance of the employees, announce the entire process and then make the decision. But as you do this, please give them your full support that they will be given offers again as soon as the company pulls up its socks. Also you can use your influence and refer them to various Human Resource Consultancies so that it will be an encouraging factor for the employees.

And while this happens you run the risk of creating insecurity in the minds of the rest of the employees. Once again, I urge you to explain the entire reason behind this move but also tell them the truth that it’s fine if the remaining is willing to stay back even though they just witnessed what happened, but there is very little possibility of a huge salary hike during this period. At the same time, if the company comes up, then a salary hike with the dues and perks should be assured to those remaining.

Let’s face it, the majority of the remaining staff are bound to leave despite the promises because the times are uncertain and to them a recovery may not be possible at all, especially after seeing their colleagues being shown the door, and even if there is a recovery it may take a long time which is a very long wait for them. No one can be blamed here. Neither the management nor the staff. But don’t fret, because even if they leave you can always hire freshers who are ready to work for entry level salaries. So in this way, staffing problem can also be solved. But this is a decision only to be taken in the worst of the worst times.