1. Tough Times: Re-engaging Survivors after Layoffs Prepared for: River Valley Human Resource Association February 12, 2009 Jonathan Sheff MSW/MPH MKS Performance Solutions LLC 18 N. Main Street Concord NH 03301 www.mksperformancesolutions.com 888 657 7373

2. Agenda • Overview • Risk Issues • Strategies for Managing Transitions and Re-engaging Survivors • External Resources

3. Overview • Strategic Mind Set • Employees as Costs to be Cut or Assets to be Conserved and Developed • Short-term vs. long-term

4. Direct Costs of Layoffs • Severance pay • Accrued pay • Unemployment benefits • Outplacement • Pension and Benefit Payouts • Administrative processing costs • Rehiring • Increased turnover

5. Layoffs Impact on TurnoverAverage rate for companies with no layoffs: 10.4%

6. Indirect Costs of Layoffs • Potential lawsuits • Loss of personal relationship with customers • Loss of institutional memory and trust in management • Potential threats or acts of sabotage or violence • Heightened insecurity; reduced productivity • Low morale; risk-averse survivors • Future new hire recruitment

7. Potential At-Risk Employees or Situations • History of aggressive or threatening behavior • History of depression, substance abuse • Prior conflicts with management • Major financial/personal stress • Inexperience with finding work

8. Tone and Content of Termination • Leading with the Heart, Following with the Head (Emotional and Cognitive) • Fairness • Truthfulness • Dignity and Respect • Adopt a “helping” relationship

9. Myths and Facts of Layoffs* • Myth: There are no adverse effects on the employees who remain after a layoff. Fact: Downsizing has adverse effects on the morale, workload, and commitment of survivors. • Myth: Downsized employees are sympathetic to the reasons for layoffs and don’t personalize the experience. Fact: Downsizing is traumatic and taken personally. • Myth: Stress-related medical disorders are more likely for those laid off than for those who remain. Fact: Survivors are just as likely to suffer adverse health consequences. *From Responsible Restructuring by Wayne Cascio

10. Understanding Survivor Syndrome * Individual Reactions • Fear, insecurity, uncertainty • Frustration, resentment, anger • Sadness, depression, guilt • Unfairness, betrayal, distrust * Healing the Wounds, David Noer

11. Understanding Survivor Syndrome Workplace impact • Reduced risk-taking • Lowered productivity/morale • Increased stress, absenteeism, turnover • Unquenchable thirst for information • Blaming others • Denial

12. Transition Management Model • Endings • Disengagement • Disenchantment • Disidentification • Disorientation • Neutral Zone/Roller Coaster • Disorientation • Disintegration • Discovery • New Beginnings/Re-engagement • New Vision • Recommitment

13. Effective Strategies for Managing Transition and Re-engaging Survivors • Over-communicate in multiple modes • Tell the truth • Seek advice • Listen vs. giving advice • Offer support and not solutions • Be clear about expectations for performance

14. Effective Strategies for Managing Transitions and Re-engaging Survivors • Encourage a feeling of “we’re all in this together” • Visible things to share the pain • Discuss phases of Transition • Accept feelings in yourself and in people you manage • Allow for venting/grieving

15. Effective Strategies for Managing Transitions and Re-engaging Survivors • Have rituals • Give survivors a reason to stay • Articulate a vision for the future

16. External Resources • Legal • Human Resources Consultants • Outplacement • Comprehensive EAP • NH Department of Labor • NH Dept. of Employment Security