Point of View

Unpleasant but Necessary Topic - Executive Coaching and Training for Staff Reductions

The extent to which the Corona crisis is impacting the German labor market is only slowly becoming clear. Nevertheless, one topic is gradually moving more into the focus of companies such as Karstadt and Daimler: the potential of staff reductions. An unpleasant topic – for employers and even more for employees. Nevertheless, it is advisable to deal with this topic consciously at an early stage.

Responsible executives often concentrate on getting through the staff reduction process as quickly and unharmed as possible. The main objective of executives is often primarily to carry out the personnel layoffs without major frictional losses and to achieve the cost reduction targets. Moreover, many executives are not aware that there are at least two further objectives to be achieved:
Firstly, they should achieve an increase in productivity with the remaining employees while maintaining the same quality.

Secondly, they should manage the cutbacks in such a way that there is no permanent break in the loyalty and motivation of the remaining employees despite the personnel crisis within the company.
Mostly those topics move into the focus of executives after the staff reduction process has been carried out and the demotivation of the employees has a long-term effect.
By then, many employees have distanced themselves from the company - not as a reaction to the staff reduction itself, but in the way, they were treated. It is therefore important to put employees in the spotlight – especially during unpleasant times.

The most crucial point during the staff reduction process is therefore to first be aware of the target groups directly or indirectly affected by the program and the possible challenges they are experiencing. Especially executives play a crucial role in managing this staff reduction process. At the same time there are also one of the direct affected target groups.
In our short point of view teaser, we give an overview of these target groups, process phases of staff reduction and corresponding pragmatic first change measures. By this a fair and inclusive staff reduction process will be initiated. In the course of a non-binding exchange, we will be happy to provide you with further insights into change and communication measures during the staff reduction process.  

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Lindner, S.  / Wolff, E.