Organizational Downsizing for Managers
Presented by
CIGNA Employee Assistance Program
Copyright 2008 CIGNA HealthCare – Confidential & Privileged – Not for Distribution
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Seminar Goals
 Know the potential reactions of separated
employees, remaining employees and
managers during a downsizing, and how best to
manage those reactions
 Learn how to conduct a separation meeting
 Learn how to support remaining employees,
and minimize adverse effects of downsizing on
the organization
 Know how the EAP can help separated
employees, remaining employees, and
managers
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Potential Reactions of Separated Employees
 Shock, disbelief and numbness— “I can’t
believe this is happening to me…”
 Anger—especially in predisposed people
 Emotional outbursts—tearful to hysterical
 Relief—“I’m glad this is over and I can get on
with things…”
continued
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Potential Reactions of Separated Employees (cont.)
 Acting out anger in sabotage
 Increased doctor visits
 Increase in substance abuse
 Updating resumes, job hunting, scheduling
job interviews on company time
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Potential Reactions of Managers
 Fear of employees’ reactions
 Anxiety over the separation meeting
 Desire to avoid being the “bearer of bad news”
 Guilt over being a part of “management”, or the
one who made the selections for the reductionin-force
 Feeling responsible for employees’ plight,
including potential personal, family and/or
financial problems
 Anger, sadness and grief over loss of
employees
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Potential Reactions of Remaining Employees
 Expect the same general reactions from the
“survivors” as from the impacted employees
 More concern regarding the long-term
adjustment reaction
 Survivor guilt
 Resistance to new procedures, duties and
relationships
 Complaints about increases in work load
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Possible Costs to the Company of Above Reactions
 Lost productivity
 Lower morale
 Destruction of company property, stealing,
defacement, sabotage
 Increased medical claims
 Employee turnover
 Increased risk of violence
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Managing the Risks
 Acknowledge company stressors and crisis of
uncertainty to employees
 Communicate to employees a decisive plan to
resolve the problem
 Announce required organizational changes
early
 Inform employees of availability of benefits and
assistance
 Train managers in managing a downsizing and
in violence prevention
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Support for Remaining Employees
 Facilitate discussions regarding concerns
 Implement retention strategies
 Increase awareness of EAP & work/life
services
 Promote the value of EAP consultation and
referrals to managers
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Benefits of the EAP
 Confidential
 Prepaid
 Available 24 hours a day, 7 days a week
 Appointment offered within 2 business days
 Telephonic consultation available
 Household benefit
 Child care, senior care, and legal concerns
EAP & Work/Life Services are extended 30
days beyond last day of employment
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EAP Consultation for Managers
Balance the needs of employees who have
lost their jobs with those who remain on the
job
Assist individuals to effectively manage their
feelings and support each other
Understand your own reactions and use the
EAP to discuss the challenges of your
management responsibilities
Discuss need for an on-site EAP counselor
strategically during the reorganization
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Recommitment & Retention Resources
Additional EAP Seminars for Managers:
 Stress Management for Managers
 Violence in the Workplace
 Team-building for Managers
For information about seminars, or
assistance in scheduling, please call:
800-241-4057 Ext. 2646 and follow
automated prompts
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Recommitment & Retention Resources
EAP Seminars for Employees and Managers:
 Managing Change
 Personal Resiliency in Challenging Times
 Stress and Your Perceptions
 The Power of Acceptance
For information about seminars, or
assistance in scheduling, please call: 800241-4057 Ext. 2646 and follow automated
prompts
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Pre-notification Steps
 Review the business case
 Discuss team roles and timing
 Review the step-by-step approach to
conducting separation meetings (next slide)
 Discuss logistics and related challenges
 Review benefits, outplacement resources,
EAP and work/life services
 Address potential safety and security
concerns
 Rehearse
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Separation Meeting
1.
Put person at ease
2.
Set the stage
3.
Announce the separation
4.
Communicate benefits
5.
Listen, and offer support
6.
Discuss transition details
7.
Introduce outplacement specialist
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Step One: Put Person at Ease
 Choose appropriate time and setting.
 Welcome the individual and make them
comfortable.
 “Joan/John, please come in and have a seat.”
 Keep small talk brief.
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Step Two: Set the Stage
Set the stage in general terms. Express your
concern for the department’s future. Some
specifics on the situation will provide a
helpful context.
For example:
“As you know, John/Joan, our company is
under a great deal of pressure to improve
earnings. We’ve had to rethink what work is
essential and how best to accomplish that
work.”
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Step Three: Announce the Separation
 Plan and rehearse the statement which
announces the separation.
 Define the separation clearly and succinctly.
 Present the decision as definite and final in a
brief statement that may be repeated if
necessary.
 Present reasons in such a way that they can
be clearly understood and remembered.
 Remember to show compassion in what is
said, and how it is said.
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Step Four: Communicate Benefits
 Explain separation benefits and
reemployment assistance. These may
include severance pay, some continuing
benefits, and outplacement services.
 A letter outlining the specifics of the
separation package is given to the person,
who may or may not want to read it right
away.
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Step Five: Listen, and Offer Support
 Allow time for the individual to react and raise
questions.
 Handle the reaction with patience and
understanding, but return to the theme of
getting started on the road to reemployment.
 Express confidence in the person and his or
her prospects.
“I know this is difficult. I can appreciate how you
must be feeling, but I am confident that with
the right assistance, you will do fine and will
soon be in a good situation.”
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Step Six: Discuss Transition Details
Set a time to meet at a later date to discuss
transition of work. This includes:
 Handing over the employee’s responsibilities
to others
 Personal effects
 Company property
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Step Seven: Introduce Outplacement Specialist
 Give them written information about EAP and
outplacement services, so they can read it later
 Introduce employee to the reemployment
consultant/outplacement specialist, as
appropriate.
“The most important things for you to focus on in
the next few days and weeks are your career
and taking care of yourself. I want you to come
out of this feeling good about yourself and
making a good career move. That's why I want
you to meet with the reemployment specialist
right away."
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Notify Security and Human Resources if:
Acts of physical assault and violence
Verbal, physical, or emotional threats
Aggressive and intimidating behavior
Sabotage, vandalism or theft
Behavior endangering the safety of others
Violence at home
Get the facts—find out what was said or
done.
Notify company Security and HR.
Consult with EAP about options and
resources to support the victim and the
workplace.
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