Talent management firm offers tips on downsizing

Taleo has offered a number of dos and don'ts for companies thinking of making job cuts in their organisation.

The talent management firm said that the first thing businesses should consider is to look at the work that is essential to operations and not just what is being done well.

People with management skills also need to identify workforce abilities required to meet business goals and "communicate constantly" with staff.

Moves to avoid include overdoing job cuts and firms might find themselves understaffed, making redundancies over and over again as that will destroy confidence of employees who stay on and keeping workers guessing about the company's intentions.

"Utilising the best information about corporate goals and individual performance enables organisations to optimise the engagement and productivity of their employees while protecting the corporate brand - even in the face of layoffs," said Taleo in a statement.

Research by the Chartered Management Institute, published last month, found that 64 per cent of managers have worked in a company where staff has been made redundant.

Comments

I'd agree that constant communication is essential - it keeps employees calm. Plan ahead when it comes to redundancies - and ensure that 'rounds' of layoffs don't become a regular occurance. One big layoff as far better for the morale of staff than several. It'll start feeling like the apprentice.

The BT idea of 'loaning out staff' to competitors is a great example of how not to lay off too many people that you expect you might need back in the upturn.

May not be so easy for other firms to do but it shows the importance of thinking ahead of for what your needs will be and the costs of hiring again v the cost of layoffs which can be measured in both financial and emotional/morale/motivational terms.