OCTOBER 2024
As companies across the world face RIF – Reduction in Force – whether through hiring freezes or retrenchments, it is important to focus not only on the impact to those who are made redundant. Equally important is to consider those who are left behind – the so-called survivors of downsizing and cost-cutting, a leadership expert says.
“Change management processes rightfully address all those aspects relating to the decision about whether to downsize, whether to freeze new hiring, who to let go, and how to manage the transition as fairly and as equitably as possible,” says Advaita Naidoo, Africa MD at Jack Hammer Global, Africa’s largest executive search firm.
“However, there must also be a strong focus on ensuring the remaining, now reduced staff complement is supported, as they are left to carry a greater burden, both emotionally and practically, while navigating the aftermath of their colleagues’ departures. The trauma of seeing colleagues and friends leave can be overwhelming, and can lead to a toxic work environment and poor performance. Restructuring and streamlining efforts also often result in significant changes to job roles and responsibilities.
“Employees may now find themselves taking on additional tasks or adapting to new roles, likely without improved compensation, which can lead to increased stress and burnout. Without adequate support and communication from management, these changes can exacerbate feelings of uncertainty and resentment.”
Change management processes must therefore actively incorporate plans for the aftermath.
“We advise companies to ensure that, once the initial restructuring is complete, the focus shifts to supporting the remaining employees. This involves addressing their emotional needs, providing clear information about their new roles and offering resources to help them adapt.
“Crucially, there may be a distrust in leadership. If survivors perceive the process as unfair or poorly managed, it can lead to a decline in organisational loyalty and potentially the loss of valuable remaining talent.”
Naidoo says some of the main factors that must be considered when employees are required to carry an increased workload under difficult circumstances, include:
Transparent communication: Leaders must be honest and transparent about the reasons for retrenchments and hiring freezes. This includes sharing information about the company’s strategy, profitability and future plans.
Support systems: Implement support systems to help employees cope with the emotional and practical challenges they face. This could include counselling services, training and upskilling programmes where an employee has to take on new roles, and regular check-ins with managers.
Involvement in decision-making: Involve employees in the decision-making process where possible. This can help them feel more in control and reduce feelings of uncertainty.
Addressing commercial realities: Ensure that employees understand the commercial realities that led to the restructuring. This includes discussing revenue, profit, risks, and the rationale behind the decisions.
Combating toxicity: Actively work to combat toxicity in the workplace by fostering a supportive and inclusive culture. This can help mitigate the negative effects of survivor syndrome and improve overall performance.
MORE WORK, SAME MONEY
Arguably the biggest grievance among remaining employees is the expectation to take on additional responsibilities without corresponding increases in compensation, says Naidoo.
“This issue is particularly pronounced when employees are required to cover the duties of their departed colleagues. While technology and AI can streamline work processes and increase efficiency, they do not always compensate for the additional workload.”
Companies should carefully assess whether the expanded roles truly require more time and effort or if they can be managed through better time optimization and use of tech tools.
“Employees may resist acknowledging the potential for increased productivity within their current roles. However, fostering a culture of fairness and respect can encourage them to take an honest look at their workloads. When employees feel valued and supported, they are more likely to recognize and embrace opportunities for efficiency.”
Naidoo says a structured reboarding process could prove invaluable in helping employees adapt to their new roles and responsibilities.
“This includes outlining new job expectations, identifying necessary skills, and highlighting potential benefits. When handled well, this process can transform a challenging situation into an opportunity for growth and development.
“The ramifications of not properly supporting a streamlined team can be severe, leading to a poor workplace culture and decreased performance. But by treating employees with maturity and providing them with the information and support they need, companies can navigate these challenging times more effectively and humanely, thereby ensuring they are able to maintain employee wellbeing and a healthier, more productive work environment.”