Transition management encompasses all the decisions, processes and measures that a company actively takes in connection with a downsizing project. Transition management starts with support during the process of deciding whether staff reductions are required – and which employees will be affected. The next step is planning the separation process with its five phases.
The key during implementation is holding values-based separation discussions with the affected employees and strengthening the trust of the remaining employees in the company. Transition management is part of organisational development; the manner in which it is carried out is a reflection of the company’s culture. We have found that values-based interaction during the transition process is the best approach to ensure that the negative impact of staff reductions is minimised.
Companies are part of public life. Decisions taken within an organisation have an impact on different groups - such as clients - employees - investors - future employees. A company’s actions are perceived and assessed by each of these groups; these assessments are more widely shared today than ever before, and therefore impact the image and market value of an organisation.
Clearly, the ones primarily affected by staff reductions or layoffs are the transitioning employees. Losing one’s job is an extremely stressful and potentially destabilising event. The best employers are able to provide the resources to help transitioning employees find alternative employment as well as successfully confront the psychological impact of their professional transition – and ideally emerge stronger.
But leaving employees are not the only ones impacted by the process. Let’s not forget that any staff reduction or layoff process is usually scrutinised by both remaining employees and the general public. Any errors in handling this sensitive process can very quickly lead to a negative public debate, with a knock-on effect on the future development of an organisation. Think about platforms such as KUNUNU, where employees can publicly evaluate the company where they work or worked in the past. These kinds of platforms are enjoying growing popularity and have an influence on the image of an organisation for future applications of High Potentials.
Sensitive client groups, who react by boycotting products and services, falling share prices due to negative media reports as well as decreases in motivation and productivity losses of the remaining employees are further examples of what organisations can be confronted with if severance of employees is mismanaged. The transition management services of Outplacementberatung approach these problems with the objective of minimising the impact of personal reduction for the company, the transitioning employees and those remaining in the company.