Business: How to Keep Production Up After Downsizing

Company downsizing is painful. It hurts employees, the company image, and makes it difficult for managers. Keeping operations on track after letting a significant part of the workforce go is a big challenge. It can require a great deal of shuffling of personnel. The work flow may need to be modified. Extra training and retraining of employees will more than likely be necessary. In the case of a massive downsizing, it may take months or longer before normal operations are achieved.

Evaluate the skills of the remaining employees.

Most companies go through this exercise during the downsizing period. In non-union shops, it is only the perceived weak links that are released at each stage of the downsizing event. There may still be some excellent workers let go. By evaluating the employees that remain at each step, you can increase the likelihood of retaining workers with more flexibility who can be rapidly retrained to do additional tasks. Careful consideration is required to make the most of the choices of who stays and who goes.

Map out a new company or departmental structure as the downsize happens.

You need to know in advance how you are going to position the employees that are being retained. Some who are managers may have to take a step down the ladder for a while to keep their jobs. This is especially true of those who were your best workers that recently were promoted to new positions. You will need to evaluate possible salary adjustments on a case by case basis. Knowing who you are going to plug into each of the slots in the new structure will help in determining which people that you need to be sure to keep on the payroll.

Set reasonable production goals for the newly re-sized departments.

Downsizing usually is a way that companies work to lower output. When not enough of the product is selling, employees are released so that production will drop enough to reduce surplus supply until demand grows again. Expecting half of the employees to be able to produce the same amount of product is not reasonable in most cases. By establishing production goals, you can better inform employees of the expectations of management on their output potential.

Focus on morale as much as production.

Your remaining employees will under produce if they fear the loss of their jobs or feel unappreciated. No one wants to feel that they have been demoted to slavery. If expectations are high regarding production, you need to work even harder to keep these employees confident about their job and happy with working conditions. Offer special perks when production goals are met. Have extra treats available in the break room during break times. There are a host of ways to bolster morale after a downsizing. Use them to keep your workers on the job and happy.