Reducing personnel to "please those who go, rest assured that people stay" is always a big challenge for many business administrators today.
The reduction of personnel is not simply to reduce operating costs, but also to demonstrate the human resource management and crisis management mindset of the organization's leaders. So how to solve the problem of reducing staff "with both sides"? The information below is what you are looking for in this regard.
1. What is staff reduction?
Personnel reduction is the screening and reduction of a department, a branch, or personnel working in an enterprise. In simple terms, staff reduction is the termination of a contract by an enterprise before the signed term with 2 or more employees.
The reduction of personnel is done according to the plan or due to some other objective and subjective reasons of the enterprise. There are many people who still mistakenly believe that reducing staff is laying off employees. It may look similar, but downsizing is a consistent, long-term strategy to help businesses operate more efficiently. And dismissal is simply the act of dismissing an employee with poor performance, poor attitude, ...
According to statistics from VnEconomy - The electronic journal of the Vietnam Association of Economic Sciences, tens of thousands of workers suddenly lost their jobs at large companies such as Google, Amazon, Salesforce, Ericsson, etc. labor market.
When the global economy is facing difficulties, severely affected by the Covid-19 pandemic, pressure from recession concerns and economic instability, not only these large enterprises but also many other companies. Companies and other organizations are having a headache about the problem of reducing personnel.
Staff reduction is the screening and reduction of the number of employees at the enterprise
2. When did the enterprise decide to cut personnel?
In the process of operation, business leaders all want to own a strong human resource team. However, adding staff means additional costs, and these costs are derived from revenue from customers. When the business is operating in difficulty, there are no customers and the profit deficit is prolonged, the reduction of personnel is a must.
In addition, when a few employees or an entire department cannot meet the job requirements in the long run, the manager must consider making the decision to reduce personnel. If the business has to be dissolved, it also causes the leader to cut all personnel. In this case, not only the staff but also the employer are cut.
3. The secret to reducing personnel "pleases people go, please people stay"
There are many companies today that have resorted to the advice of experts on maintaining trust in the process of staff reduction. Here are some tips that have been given:
Define a thorough downsizing strategy and prepare for legal matters
First, the human resources department needs to have specific statistics and evaluations about the group of employees expected to be laid off. That is the foundation to show transparency and clarity in making decisions to reduce staff and avoid making employees feel unfair. The human resources department also needs to comply with the law on personnel reduction to prevent unnecessary situations from happening.
Make a fair decision
Who gets cut is an issue that employees in the business are always concerned about. Enterprises should follow simple criteria such as work performance, KPI achieved, value of contribution, working attitude, teamwork... to help cut easily and ensure the most fairness.
Announcement in the spirit of respect for employees
Most of the employees have had time to stick around and make efforts for the development of the business. If a decision is made to terminate a job, the manager must exchange and inform based on the spirit of listening and respecting the wishes of the employee to have a solution to "please the people who go, please the people who stay". ".
Support new career transition for employees (if any)
If possible, the manager can support workers to get new jobs . This is a practical action to help employees continue to get new stable jobs and show the company's interest in employees.
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Don't ignore the rest of the staff
Many employees intend to change jobs after the company's staff reduction. Therefore, business managers need to prepare convincing content why they should stay and continue to contribute. Some of the reasons that should be given are that our business always has a fair assessment, we are having a strategy to develop a good staff, implement a new business plan,... However, you need make sure these reasons will be followed.
Proactively apologize publicly
It's not easy for a manager to apologize without being skeptical of employees. But anyway, the manager should apologize and explain why there is a problem of reducing staff so that they feel secure and continue to contribute to the business.
Deciding to reduce personnel is a difficult problem for not only enterprises. However, as long as you stick with the operational guidelines and put the interests of human resources first, the business will have appropriate handling to continue to go further in the goal of strong development. Navigos Search hopes the above sharing will be useful to readers.
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