Navigating Layoffs: How Our HR Team Managed a Tough Workforce Reduction with Empathy and Support

Dear Friends,

Let me introduce myself, I'm working as HR in a product based IT company. Though ours is US Company, our branch is in Hyderabad.

Today I‘ll share with you my recent experience… . this is quite lengthy request you to read it in leisure.

Till one year back we were around 80 and now the size is 124, we pushed ourselves hard, made all the possible efforts, to bring that magic three figure mark. Campus recruitments, Walk-ins, apart from conducting tests on daily basis, it all helped to cross hundred mark. We celebrated in a big way to commensurate this. We are just one short of 125.

But with the rapid increase in salaries, the appreciation of the Rupee vs US$, and other areas of cost escalation, our US management team has decided to reduce the workforce. This is to ensure that our costs in 2008 do not out-pace our growth in revenue, and we continue to be successful in 2008. We've issued termination notices to few (32) employees. We've given two months notice for all those associates. We only 've given them offer letters and with the same hands we've given them termination letters.

It's tragic.

Most (26) of them are 2 years to 4 years experienced professionals. Some absorbed the shock, and showed their character and resilience. Few are disappointed and hurt. Naturally we are also sad, but since we know about this a bit advance, we prepared ourselves to answer their queries and defined the ways in which we can keep them motivated and help them out. Also we decided to give general relieving letters instead of termination letters.

Initially HR team was shocked. We had lot of discussions on how to tackle this, reduce the figure and how to guide these people? Not only that, those who are already working may feel unsecured. We need to face them also. We didn't press the panic button.

The proposed reduction in force was 48 but we reduced it to 32. Worst it came at a situation where my Director (HR)'s daughter is getting married in a week's time. He was supposed to take leave, but he postponed till everything is settled.

People are really good, technically competent and hard working. To help our associates, we forwarded profiles to different companies and consultancies through our contacts. Some are surprised because they never might have seen/heard of a HR forwarding profiles of their own associates. We explained them the situation and some immediately offered their hand. We know there is a mission in hand which is to place them all at-least ten days in advance before the notice period. We are happy that already nine got selected for major companies. And few are in the second and final rounds. I'm confident that everyone will get selected.

Exactly one year back I (we) started recruiting people. I'm the first point of contact. I used to source profiles, call for tests and conduct interviews.

Our selection process is

1) Written test

2) Followed by two technical rounds and

3) HR round

I remember each and everyone's story. How I sourced their profiles, what's their initial reaction after picking up my call, and their responses to my questions during the HR round.

We often meet @ cafeteria, they will share their experiences, they laugh, they try to pull legs, crack jokes, it all happens if you are sportive and amicable.

We've the reputation of working on latest technologies and paying good salaries. Last week seven associates (employees) confirmed that they've received offers and today one guy came to me, I thought he would feel happy because he has an offer in hand. But he was sad. The reason, he is not going to work on the latest technologies. He asked me to cut the salary instead of terminating. He was emotional and I was moved. The decision is not in our hands. I explained him the pros and cons of if there is a salary cut. How it effects the employee morale and ultimately productivity. In his short term of six months @ our org, he learned and worked on two major technologies. If given an opportunity he'll stay back, learn and contribute to the org. Like him there are many. Some are expressive and some are silent.

My pray to the Almighty that this shouldn't happen to anyone….. and may GOD bless them abundantly with all they want in life.

I'm not saying all this because we did some great job…. I want to share with you this because life is full of ups and downs and the real beauty lies in how you stand up and face the situation

My lessons from the entire episode as a HR

1) Maintain good rapport with the associates.

This for us actually starts after taking the written test. Once he joins we offer lunch on the first day. We'll go out for lunch and we'll try to get as much information as I can, about his family, his interests, his likes and dislikes, etc.

2) Make the new associate feel comfortable until he/she is in sync with the office environment.

3) Guide them properly in all aspects.

4) React to their problems immediately.

5) Instead of running away from problems, think for solutions face them boldly. In my case I looked for all possible contacts and developed few more because of this situation.

6) Increase your network. It always helps you to know more about the individuals and it also helps you to grow in your career.

Since I'm short of time, I didn't check for mistakes. Please excuse me if there are any.

Have A Nice Evening…

Kind regards,

Subhash

Subhash, you really moved me an inch :) That's fantastic support you give them. But one question, weren't you prepared about the requirements while sourcing the candidates and issuing them the offer letters? The way you narrate makes us understand that somehow you want to increase the number to three digits. I'm really sorry if I hurt you, but still would like to clarify on that. Anyways, I pray this shouldn't happen to anyone in any company. Thank you, friends.

Srilatha

Dear Lathasri,

Thank you for your comments.

The projections we have are different, and top brass expected more business for our product. The decision is taken by the management in the US with the help of people back in India as to how many we need for the projects which are in the pipeline. We have our own products that are still in good business. In 2006, we introduced business components for the insurance sector. It showed huge success in US markets, and we decided to increase the components in different domains like health care, mutual funds, etc. We started recruiting people. Somehow, the product didn't click in the market as expected. Adding salt to the injury, dollar depreciation (but I'm happy the rupee value is appreciating) started affecting bottom lines. Combining these factors, we stopped recruiting people. And in the end, a November decision was taken to reduce the force in India.

It took a decade for us to reach the three-figure mark. Hence the excitement. My HR director has been with the company since then and has seen the highs and lows. Our director shares everything with us. How the company has evolved, how we faced the Y2K problem, and how people stand in the midst of difficulties. These things inspire us.

Thank you, friends.

Srilatha

Hi Subhash,

I am touched. You all are doing a great job, dear. One should learn from you the way an associate should be treated. They are human beings. We sometimes treat associates as commodities. Like you, I also try to make the new joiner feel at home from the very first day in the organization. But what can we do? There are certain limitations, and we have to work under strict guidelines and budgetary provisions. Keep it up.

Byomjeet Mishra

Well, but nothing you did is to be appreciated. I mean what you did was expected from you, and nothing to be appreciated. You should not play with their careers. You should never think what you did is something above and high; it is your duty. If you simply handed over termination as instructed by US Management, then what the heck, an HR you would have been. You should do your duty with full dedication. Members who appreciated your act don't know that this is what is expected of the so-called HR professional who is only in name HR and nothing else.

Dear Subhash,

I am really touched by the incident that you narrated in your post. After going through all the points, I can say that you are the right person to be in HR. Even I have learned something from your post for which I am thankful to you. Anyone can come across this situation; the thing is how you will tackle it as an HR professional. This post has a lesson to teach all HR professionals. I am sure that your post will be among the top 10 posts where everyone would like to share their ideas and thoughts with you. Thanks a lot for sharing it. I hope that all employees will get good offers in other organizations as you are also trying for them.

Regards,
Simta

Hi all,

Good news! 😄 Very happy - already 14 have been selected, with a few in the final rounds of selection. 😄 Very happy.

I'm not able to access CiteHR for the past two days, neither at the office nor at home. I'm happy that it's up today.

Thank you, Byom. To be frank, I didn't do anything great. You can do one thing for the new associates. If your organization doesn't permit you, take them for an evening snack instead of lunch. Also, you can highlight this point during one of the meetings. Even lunch is not mandatory. You can meet them in the cafeteria. The importance of this whole exercise is to make them feel comfortable and important, and to gather as much information as possible from them. I love to spend weekends with people, but I don't want to disturb their privacy during weekends. So the best option for me is, if I miss the opening day lunch, I'll catch them while having tea or a snack. You can also think of other alternatives.

Thank you for your comments, Deepthi. 😄

Hi Subhash,

Wonderful job you have done. Everywhere, associates are unhappy with the HR because of the steps we take on the company's side, but in your case, they will remember you forever. Nonetheless, it's quite an embarrassing situation. Do forward your associates' technologies; we may certainly be able to help you.

Sandhya

Thank you, Simta and Sandhya, for the helping hand.

Ravi,

Thank you for keeping me in check. Well, not even once did I mention that I did a great job. The only thing we can be proud of is the numbers. It has been reduced to 32 from 48. And I don't think many (especially HR) will come forward and send their associates' profiles to other companies explaining the situation. If I'm wrong on this, then please excuse me. One thing I always remember is it's easy to pinpoint others and very easy to give suggestions. How we react when we have a situation in hand makes all the difference. Isn't it? It's fortunate that I'm in the company of people who look for solutions rather than aggravating a problem.

Have a nice rest of the day.

Regards,
Subhash

Nice to hear about the selection of 14 employees. Great going. All the best, Subhash.

Regards,
Simta

Hi all,

Good news.... 😄
Very happy! Already 14 got selected, with a few in the final rounds of selection. 😄
I'm not able to access CiteHR from the past two days @ office or even @ home. I'm happy that it's up today.

Hi Subhash,

I am touched. You all are doing a great job, dear. One should learn from you. This is the way an associate should be treated. They are human beings. At times, we treat associates as commodities. Like you, I also try to make the new joiner feel at home from the very first day in the organization. But what can we do? There are certain limitations, and we have to work under strict guidelines and budgetary provisions. Keep it up.

Thank you, Byom. To be frank, I didn't do anything great. You can do one thing for the new associates. If your organization won't permit you, take them for an evening snack instead of lunch. Also, you can highlight this point during one of the meetings. Even lunch is not mandatory. You can meet them in the cafeteria. The importance of this whole exercise is to make them feel comfortable and important and to get as much information as possible from them. I love to spend weekends with people, but at the same time, I don't want to disturb their privacy during weekends. So the best option for me is if I miss the opening day lunch, I'll catch them while having tea or a snack. You can also think of other alternatives.

Excellent, Subhash! It's really tragic that you had to hand termination letters as soon as you gave them offer letters, but you managed it beautifully! Keep it up! There's really a lot for us to learn from this! Bravo! Kudos!

Thank you for your comments, Deepthi. 😄

Hi all,

I am too young to comment on this, both age-wise and experience-wise, whether you have done something great or performed your duty. Still, it was a great lesson for me. One thing I feel is that often people don't do what is expected from them. Here, of course, you have done something going out of your way, which is definitely an act deserving of appreciation. So, for me - HATS OFF TO YOU.

Thanx & Regards,
Annu

Dear Pooja, Anuu, and Smitaa,

It remains a good experience for me. This is the first of its kind in my professional life. The count is now 17. On average, everyone has two offers in hand. Smiles are back on their faces :)

Cheers,
Subhash

Hi Subhash,

14 being selected is great news. It must be a sigh of relief for you. Congratulations to you and all of them. Keep up the good work you are doing. And thanks for sharing it with all of us.

Goodbye

Hi Subhash,

It's good to know that in today's cut-throat competitive professional and corporate world, we still have understanding HR. A few days back, I also went through a similar situation. Trust me, it's hard for HR to handle such delicate matters, but if we handle them with concern and care, things do work out. Thank you once again for inspiring everyone here :)

Regards,
Reema Sharma

Hi Subhash,

Well done! You have taught a good lesson on how an HR professional should behave in such situations. Generally, employees have a feeling that HR is more aligned with management, but now, for certain, they will not have such a feeling. Excellent work! Thanks for sharing such valuable information! :D

Here, I would also like to add a problem that I face in my organization: the production department is not allowing me to spend time with the new recruits. When a new recruit joins the organization, I conduct the induction, explain the formalities and procedures, and ask my assistant to introduce the new recruits to the rest of the colleagues. However, once that is over, I am unable to mingle or spend time with the new joiners.

What should be done to resolve this?

Thanks, Sowmya

Hi Subhash,

Good step as an HR, but moreover as a human being. This is called Human Relations that last long. HRs think with their minds but work with their hearts.

Good luck,
Trupti

Dear Subhash,

Thank you for sharing your experience. I regret that I have not joined CiteHR earlier. A few months back, I had to terminate my complete Finance team due to some cash shortages. Only I understand the pain I felt while terminating those employees; some of them had been working in the company right from when the company started and had joined before me. But I had to do what the company and management expected from me. I helped them to some extent and also referred them to my friends.

I feel that reading this article earlier would have helped to look at that situation from a different point of view and help them in a better way. Though I am happy to say that all of those terminated have stood up strong and are presently gainfully employed. Your article gave me a great learning experience.

Thanks and regards,
Viraj

Dear Subhash,

The HR team of your company must be congratulated for the excellent HR practices and the support you guys have rendered to the affected employees. The situation is really touching. Generally, it has been observed that 'H' in 'HR' is missing. But in this case, you have really done a great job. Many like me in the HR community may like to learn a lesson from this case.

Please keep up the good work.

Regards,
Surendra

Thank you,

Madhu

Reema Sharma

Afsha

Chakrabroty

Janavi

Neetu

Nikkyblue

Trupti

Viraj

Surendra

Hiten

M.PEER MOHAMED SARDHAR

Vennila Natarajan

---- for your wishes and blessings.... I'm moved by your comments and very happy to know that it's an inspiration to all.

At present, I'm reading the book "The Alchemist." I'm sure many of you might have read this, in which the author (Paulo Coelho) mentioned, "Why is it so important to live our personal calling if we are going to suffer more than other people? Because once we have overcome the defeats - and we always do - we are filled with a greater sense of euphoria and confidence. In the silence of our hearts, we know that we are proving ourselves worthy of the miracle of life. Each day, each hour, is part of the good fight. We start to live with enthusiasm and pleasure."

How true!!!!

Hi Sowmya,

If I'm in your situation, I'll find out the root cause why the production department is not allowing me to meet new associates. Is it because they have more training sessions, are overburdened with work, or any other reason? Once this is clear, then I (we) will plan the best time to interact with them.

Come what may, one should be in touch with them. This is because for new hires, the bonding with the people they meet during the first few days remains forever. Initially, they are shy to approach people, whom, what, where all are big questions for them.

I was in this situation earlier. I'm determined, I don't want anyone to face this situation. With the help of my colleague, we made a few changes in the induction policy, and with our director's consent, we are implementing the same.

Lucky to work with the director who has 25+ years of experience in the field of HR. He always guides us, gives more freedom, and encourages us to think differently, and we get instant feedback. We are two working in HR Department apart from our Director (HR). He looks at both of us as his son and daughter.

Hi Viraj,

Welcome to citeHR.

I understand the pain. For these kinds of situations, we will be in an embarrassing position. And especially for those who are with the company right from the beginning and received notices, will get the feeling that the org didn't treat them properly. Let's wish all will be placed quickly and would be in a much better position.

Have A Great Week Ahead.

Cheers,

Subhash

P.S. Unfortunately, we missed our Director's daughter's wedding, and we are happy that we could at least make it to the reception.

Hi Shubash,

It's a wonderful post. I think most of the HR professionals in this forum would have gone through this, but no one has expressed it as you have. It's a wonderful job done. I am able to see the situations I faced a few months back and the pain of telling employees whom we have known for many years that they are not going to be a part of the organization anymore.

I also have to face another termination by the year's end. I haven't told him yet. I feel so bad that the new year is going to start this way for him. I am trying to push his resume to all the consultants I know.

May God be with those who face such situations.

Kiran

Dear Subhash,

What an outstanding thing you have done. I'm really happy that good souls still exist in this world. People might say that what you have done is what HR is supposed to do, but how many of us are doing so. Very few, you can count them on fingers. I'm glad that 14 out of 32 have been placed, that's what good organizations do and yours is one of them. I can quote this example next time whenever I take training on Empathy - Emotional Intelligence. Thanks for being such a nice Human Being!!! There is nothing great about it, but how many of us are Good Human Beings we all know. Best Regards and many successes in life,

Archna

Dear Subhash,

Issuance of a termination letter to 24 employees would definitely have an adverse effect on the total workforce. It would create a negative vibe and feelings of insecurity among the others as well. Needless to mention, it would have a multiplier effect overall.

The reasons mentioned by you definitely seem quite valid, but I do think that terminations should have been gradual if possible, such as 7 employees per month. Additionally, the employees should be explained the reasons for termination to avoid any misunderstandings and should be directed towards alternative avenues of employment. Overall, they should feel that the reasons were genuine beyond management control and that the organization as a whole was a good place to work for.

All the best!

Sincerely,
Amith S

Thank you Vineeth, Kiran, Archna, Praveen, Sujeet, cgnanij, Jaya, Simta, and Amit.

With your wishes and blessings, I'm happy to announce that the number has been increased to 19.

Dear Amit,

When a huge lay off like this happens, there will be a great amount of insecurity among the associates and impact on the organization. If the management is proactive then we can avoid the adverse effect.

Imagine if we do this in phase by phase manner then the fear of insecurity will increase tremendously. Productivity will decrease, associates will fear whether his/her name will be the next? We even thought of giving it to one after another instead of announcing and giving it to all at a time. We called all the 32 associates, our CEO and President who came from US announced this sad news, explained CLEARLY why it all happened. They (we are also part of it) answered their queries. This all happened in the morning.

As planned in advance, we had a meeting with the rest of our team in the afternoon. Trust me as the news spread, the fear of insecurity raised among the associates. They have come-up with different queries. The top of all, will there be any second list?

We've people with vast experience---Sr.VP-- 23yrs, VP-- 21yrs, Director (HR)—25 yrs. We all prepared on how to face the team. How best we can eliminate that fear in them? If we fail here that's it.

The management team showed the road map for the years to come, how many projects, how much revenue we've generated and how much we are expecting through new projects, and why they have taken such a drastic decision and our plans to protect the existing employees.

We've never been in this situation before.

Cheers

Subhash

Thank you for sharing your experience. Reading your post, I can tell how emotional you have become in this situation. All I can say is, there are times when we have to accept things as they are and take them positively, which I feel your HR team has done nicely. I really appreciate the idea of finding a job for the employee you are terminating during such times. With some creative practices or ideas like this, at least you can be of some help to the employees.

Regards,
Richa

Dear Subash,

I really appreciate your kind and helping heart. You have actually created a very good network and support for yourself.

Regards,
Leena.

Thank you, Tikam and Leena. I would be much happier if all the members of this elite group could shed light on this and share their experiences when faced with these kinds of situations. It would be a great learning opportunity for everyone.

Kind regards,
Subhash

Dear,

Maybe your episode is an indication of things to come when there is a rapid/artificial increase in salaries, the problem being the appreciation of the Rupee vs. US$, and other areas of cost escalation when US companies operating in India decide to reduce their workforce.

With Regards,

V. Sounder Rajan

E-mail: rajanassociateslawfirm@yahoo.com, rajanassociates@eth.net

That's quite possible, Mr. Rajan. In the US, the market is huge for software products, especially in the insurance domain. Everything is insured, hence the growth. We can reduce the impact on Indian companies whenever there is a slowdown in the US market by concentrating more on other countries.

Regards,
Subhash