Downsizing Hurts Productivity A Case Study

Downsizing Hurts Productivity: A Case Study of the Hampton Fire Department The easy act of paying positive attention to individuals has a great deal to do with productivity. ~ Thomas J. Peters Although many firms lay off employees to cut costs and improve productivity, the result's often the other. In most cases, downsizing hurts productivity. A case research that was done on the fireplace department in Hampton, New Hampshire supplies some perception into why this is true. As part of the examine, fireplace safety personnel have been surveyed about their experiences with layoffs. Here are a number of the outcomes: Of course, a single case research doesn’t prove that downsizing hurts productiveness, but this is not an isolated incidence. In 1996, the American Management Association carried out a research on firms that had downsized. They found that only about one-third of them had elevated their productivity after downsizing. Another study also discovered that downsizing hurts produc tivity. Some of the factors cited as reasons for the lack of productivity included the voluntary resignation of survivors, failure of these left behind to keep up the increased workload, resistance to change, and inexperience on the part of new employees who have been employed to switch those who resigned. If you might be forced to chop labor prices, you need to expect that there shall be negative repercussions within the type of lowered productiveness and morale, lowered employee trust in administration, and valued workers who were not laid off leaving to work elsewhere. Although you'll be able to’t completely keep away from these issues, there are ways you can scale back their impact. 7 Ways to Avoid a Loss of Productivity after Downsizing Avoid layoffs if attainable. Make sure your employees know that layoffs are a final resort that you will solely contemplate when there are not any other choices. Ask for cost-saving ideas out of your workers. They may be able to assist you to give you a approach to cut costs with out chopping their jobs. Tell the whole reality. Be truthful along with your staff, and don’t withhold information. Let them know what is going on. Treat them as you’d like to be handled. Think about how you'd really feel if you had been the one whose job was being cut. Try to treat your employees the best way you'd need to be treated. Keep it optimistic. There are still good things happening at work. Help your staff concentrate on their successes. Think ahead. Planning lengthy-time period tasks demonstrates to your employees that you just consider the way forward for the corporate is safe. Get them excited about being part of that future. Share the load. Your staff are going to be overloaded with work because of a scarcity of staff and assets. Offer to help when attainable and work with them to determine priorities so that they're focusing on the tasks that are most essential. Maintaining worker morale within the face of layoffs is not a straightforward task, but it is one thing each supervisor ought to try for. By keeping employees motivated and productive throughout downsizing, you'll be able to enhance your company’s possibilities of making a full restoration to its former power. Important Leadership Lessons For Your Success From Joel’s Speaking Engagements 16 Categories of Leadership Topics For You To Leverage and Learn. Top Business Publications Interviewed Joel. Read These Articles to Become a Better Leader. Free e-Book When You Sign Up For Fulfillment@Work Newsletter You have Successfully Subscribed! We will never share your information with outdoors parties and you're free to unsubscribe at any time.