Upbeat Approach Cuts Downsizing Woes

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Upbeat Approach Cuts Downsizing Woes

Changing economic and business conditions are forcing companies throughout the country to make deep cuts in their workforce.
Source: Orange County, Resource Guide

Upbeat Approach Cuts Downsizing Woes
Changing economic and business conditions are forcing companies throughout the country to make deep cuts in their workforce. Conditions in Orange County reflect this "belt-tightening" attitude as each week another corporation announces plans to lay-off, or cut-back. The following article describes one local company’s decision to reduce their staff, and how Career Strategy Associates used their outplacement and career counseling experience to help the affected employees, as well as the company.

Downsizing With A Heart
"Downsizing, lay-offs, cut-backs." Regardless of what they are called, jobs are lost, plans change and futures are threatened. Often employees feel lost and employers feel awkward. Both sides feel ill-equipped to handle the situation.

Yet in spite of all the gloom and doom prospects, Betty Fisher, president and owner of Career Strategy Associates (CSA) of Newport Beach, California, believes that downsizing can, and should, be a "win-win" situation. CSA helps the employer create a smooth transition for the exiting employees and the company. "Our primary concern is assisting the displaced employee in career continuation efforts using proven career management skills," states Fisher. "The emphasis is on self directed career management."

Company Faces Dilemma
A recent CSA corporate client illustrates Fisher’s point. A medium-sized manufacturer based in Orange County has long been regarded as a good place to work - "the company cares about its employees," states Fisher, "as evidenced by their employment practices and by the number of long-service employees in the plant."

In early 1991, the company initiated a worksharing program to try and deal with lowered production. "The program ran for several months," claims Fisher, "but didn’t reduce levels enough."

Tough Decision Creates Partnership
In April, the division president decided to downsize by cutting 165 jobs in Orange County and 80 more in two subsidiaries. CSA was retained. Fisher recalls that the president emphasized employee welfare as a primary concern in planning the reduction in force. Executives were cautioned to continue treating employees with concern and sensitivity.

CSA’s first step was to create a downsizing strategy. Working closely with the human resources director, CSA developed a three-level outplacement program to meet the needs of each employment classification. All released employees received some core benefits, but separate assistance programs were developed for executive, salaried, and hourly groups.

Executives Receive Individual Packages
Displaced executives and high level technicians received one-on-one counseling and personalized outplacement packages that enabled them to develop a job search campaign tailored to their unique needs and skills. They completed a battery of tests and received feedback. They also developed a strategic plan for setting and reaching optimum career goals. On-going candidate activity included developing a business plan for setting up a new company, as well as more traditional job search campaigns.

The executive’s one-on-one counseling also included training in interviewing and role playing, networking, communication styles, handling "trick" questions and career planning. The executive manual also served as a reference guide for subsequent job search campaigns.

Salaried Employees Attend Workshop
Salaried employees attended an off-site day-long workshop, which gave them an overview of a results-oriented job search strategy. Participants took a career interest inventory and used this, plus their own skills and talents, to develop a strategy for identifying their next position. During the workshop they also developed a resume, based on accomplishments and career objectives.

Additional training included interviewing techniques, networking, communication styles, and handling "trick" questions. The accompanying workbook was also designed to serve as an important reference during subsequent job search efforts.

All CSA clients felt their chances for finding a good position had improved as a result of working with CSA. Interviewing techniques and resume preparation were mentioned as the most valuable topics covered. One participant mentioned that the workshop was "upbeat and very positive, which is very refreshing in this normally gloomy situation."

Hourly Employees Learn Basic Skills
Production and distribution employees attended a mini on-site workshop focusing on specific job identification and presentation skills. The workshop was given five times over a 15-hour period, allowing employees on all shifts to participate. The interactive workshop concentrated on ways to find jobs, interviewing skills, and completing an employment application. Participants were encouraged to develop a personal data sheet and trained to respond to a variety of interview questions. Each participant received a 15-page workbook highlighting the session, including guidance in identifying transferable work skills and interests.

One of the hourly employees commented that he had worked factory production jobs for several other companies, who had downsized, but this was the first and only company that was really concerned about what happened to their hourly employees. "I really appreciate this help, as does my family, I guess this is downsizing with a heart," he said.

Early Success
After just one month, program results indicated that one-third of the executives are already working in new positions, one third have successfully networked and established third-generation contacts, and the final third have averaged 10 contacts per week. In the same time frame following the salaried workshops, 40% of the participants had secured new positions, 40% decided to take retirement, and 20% were still looking. The hourly workforce experienced a similar level of success.

Both Sides Win
While reducing a workforce is never a pleasant job, the company was able to downsize in a way that respected the welfare of its employees - both current and former. The partnership with CSA allowed them to put a custom program together quickly and confidentially, ensuring all details were handled professionally and discreetly once the announcement was made.

The program was customized so each individual received specific training and job search coaching appropriate to his/her career expectations. Displaced individuals got the support they needed to direct them toward finding a new position in as short a time as possible. This partnership allowed the company to handle a difficult situation without losing sight of its core values.

CSA Manages Positive Change
Betty Fisher opened Career Strategy Associates in 1989, deciding to emphasize the positive side of voluntary and involuntary career change resulting from corporate downsizing. Her background includes over ten years of career management experience, plus twenty years as a senior P&L manager for a Fortune 10 retailer.