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Article from The Business Times, theSMEmagazine, May/June 2012
PARTING WAYS
By PAUL HENG
One of the more critical issues for CEOs to manage is that of manpower planning. Yet, this activity is often relegated to the back burner as the time frame is usually more mid to long term, and leaders - especially those managing SMEs - are often occupied with tackling more pressing and time-sensitive issues, such as bringing home the bacon.
For most SMEs, having a human resources (HR) professional – as compared with having someone handle the HR-related issues as part of another key portfolio - is a luxury. Hence, this particular activity may actually not see the light of day. This is a pity, as human resources is typically one of the key success factors for businesses.
In an ideal world, manpower planning activities should be integrated and form part of the overall business growth initiatives of the company. This is easier said than done for a multitude of reasons, and the common reason/excuse given is the lack of time. The end-result of this is that the growing organisation may end up with one or more possible scenarios, such as:-
• Absence of the right type and/or quantity of talent
• Employees who do not possess the right competency and skill-set to be effective for the company’s stage of growth
• Excess number of employees for the business needs
The consequence of all three scenarios are likely to be a frustrating one for the CEO/SME owner. You know what you want, and should do, to bring the company forward or to the next stage of growth, but you do not have the right people for it.
From the business perspective, there is absolutely no doubt what needs to be done: remove some of these employees from the payroll so the company can forge ahead. The easiest and fastest way to do so is to decide on a date, inform all those affected, pay them off and wish them luck when seeing them to the door.
Another option is to do it more professionally, and humanely: Provide them with outplacement support. Managing the emotions and concerns of the remaining employees is also critical as they will be the ones whom you need to rely on to move the business forward.
To this day – some 15 years since I began my journey as an outplacement consultant, and probably close to three decades since professional outplacement services were available here in Asia - there is no shortage of CEOs and HR professionals who are not quite sure what outplacement really is.
As the name clearly suggests, it is somewhat the opposite of (in) placement. Most SMEs would know what an employment agency, or a search/headhunting firm does. Outplacement happens when you wish to move people out of your organisation.
In the traditional outplacement model, outplaced employees - whom we in the industry typically call the “candidate” – is provided with both the emotional hand-holding and practical skills to look for a job. Job loss typically results in the individual suffering from a drop in self-confidence and self-esteem – this is when the counseling support comes in. If they dwell too long in this space, it will impede their ability to move ahead with their lives.
The second key component of the outplacement program is providing candidates with the knowledge, skills and techniques to effectively secure a new job. Most people who have lost their jobs involuntarily would prefer to go back to the corporate world by finding a new job.
Only a small percentage would prefer to do something different, outside the corporate world. What is interesting to note is that, over the past decade or so, there has been an increase of candidates who prefer not to return to the payroll, but to be self-employed. Appropriate support should also be extended to such candidates by the outplacement consultant.
Outplacement support is about providing both the emotional as well as practical support to employees who are affected by job losses arising from organisational needs and changes. It facilitates a smoother transition for the employees involved, and is typically funded by the outplacing employer. Self-funded candidates do exist though this tends to be minimal for most outplacement agencies, as most potential retail clients would prefer not to pay the prevailing professional fees.
Outplacement programmes can be delivered either individually (one-to-one), or as a group workshop. Most sponsoring companies would place the relatively less senior employees on the latter. There is a menu of one-to-one programmes, ranging from a basic one-month support to 12 months. The more extensive support is typically provided to employees who were holding C-suite appointments, or functional heads e.g. marketing director.
If you are planning to provide outplacement support, how do you go about choosing an agency that fits your company’s – or more precisely, the impacted employees’ needs? My advice is simply to begin with the end in mind. Ask yourself these fundamental questions:-
• Why do I want to do this?
• Why spend more money than is legally and contractually required?
• How will my employees benefit from the support?
• How is the company going to benefit, if at all, from providing this support?
Try to resist the temptation of deciding on your vendor based purely on the fees. Ultimately, you are going to spend some money, so ensure that your investment is well worth its potential returns. Going with the least expensive of the quotations may not be the smartest thing to do, especially for your ex-employees. They may potentially have a negative experience and you end up incurring their wrath even more.
As a best practice, always insist that your vendor provides you with regular progress reports on how your ex-employees are doing. At the completion of the project, make it a point to have your ex-colleagues share their experience with you – at the end of the day, hearing from the horse’s mouth is the most reliable form of feedback that you can get.
If you feel it could be useful, have the outplacement agency draw up a proposal to help you manage the remaining workforce.
Forward-looking leaders will understand the benefits of providing outplacement support when employees have to be removed from the payroll. In the long run, you will enhance your company’s reputation as a good employer, in good times and in bad. This will allow you to continue attracting the much needed talent you need to continue doing well in your business. The side-benefit of taking good care of exiting employees will allow you to sleep better at night, it will go to some extent in easing your conscience.
Parting company with employees is never an easy thing to do, the least you can do is to take good care of them, as you said you would when you were trying to hire them.
The writer is founder and executive coach of NeXT Career Consulting Group, Asia
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