Common Mistakes Businesses Make When Downsizing Their Workforce, According to Salveson Stetson Group
Memo to Business Leaders: There’s Still a Talent Shortage Coming
RADNOR, PA – March 3, 2009 – Companies across the country are shedding jobs in an effort to cut costs, but many may find they have made some common mistakes that will cost them down the road, says Salveson Stetson Group, a full-service retained executive search firm.
“This severe economic downturn has forced employers to take a hard look at expenses and to make some painful decisions about lay-offs,” said John Salveson, a principal with Salveson Stetson Group (www.ssgsearch.com).
“That is an entirely appropriate response – but employers can also fall victim to errors in decision-making that could hurt them further in the future.”
Among the most common missteps companies make when downsizing are:
Downsizing is always a painful process for an organization. Many companies try to limit the impact by laying off as few people as possible, when in reality business conditions may call for more significant action. “Trying to spare employees pain by keeping layoffs as small as possible often backfires when a company has to go back and do a second round of lay-offs because they didn’t originally take the actions required to sustain the business,” said Salveson. “This ‘dribs and drabs’ downsizing strategy has a terrible impact on employee morale.”
Cutt
