How Job Cuts Hurt Companies

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Some interesting, but not surprising, results from a survey conducted by The Five O' Clock Club, a national career coaching and outplacement firm.

"A survey conducted among job seekers shows that supervisors are mishandling the termination process," according to the organization. "The striking facts show that, across an entire spectrum of industries, workers are very unhappy with the way they're treated."

Here's some results:

- 82% of the time, employees received no positive feedback about their time at the company, even those workers that had been with the company for five years- or more!

- 69% of workers say that they would not recommend the organization to other job seekers, based solely on how they were treated during the exit interview.

- 74% of workers said that, in their estimation, they could have been treated more equitably and kindly during their exit interview.

Richard Bayer, Chief Operating Officer of the Five O'Clock Club, said, "The termination process is very bruising to the employee. It destroys self-esteem, and makes it difficult to pick up the pieces and move forward. Managers often forget to have a human touch --feedback about performance, both positive and negative, and being able to say a kind word. If you have to terminate an employee, why not leave their dignity intact?"

Advice for employers when firing people:

- Be Honest: Tell the employee what went wrong. People are more likely to go forward if they are given a reasonable explanation.

- Be Positive: Yes, a kind word helps. For example, "You've been a trooper. I'm sorry that the organization has moved in a different direction."

- Be Compassionate: Allow for a "decompression period". Let them have some control over how they leave. If possible, let them finish tasks they want to finish and make arrangements for keeping in touch with co-workers.

- Be pragmatic.: Have available full written summaries of severance benefits prepared with as much care as the benefit booklets handed to new hires.

- Seek Closure.: Discuss other issues such as professional references, so the employee can formulate a strategy to move forward.

- Help Them Move On.: Provide your employees with outplacement services that position them the best for the long run.

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This page contains a single entry by Muhammed El-Hasan published on July 24, 2008 10:58 AM.

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About Biz Waves

Biz Waves is a one-stop Web hub for business news and content from the South Bay region of Los Angeles County and beyond.

The primary contributor is:

Muhammed El-Hasan, a business reporter at the Daily Breeze since 2000, covers aerospace and everything else about business in the South Bay. Muhammed previously reported at the San Bernardino Sun and the community news division of The Orange County Register. He also worked as a researcher in the Jerusalem bureau of the Los Angeles Times in 1996-97. But his career highlight as a young man was driving a forklift at a Gardena company near Hawthorne, where he grew up.

You can email Muhammed at dailybreeze.com

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