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Three Steps to Addressing Employee Surplus

Transforming a company for certain managers means laying off part of the employees, implementing this through steps outlined in regulatory procedures, and continuing towards the previous business model. A wrong step, which is visible in many parts of the business after the process.

If the company has done nothing to rehire the people it laid off, it will also trigger negative effects on its reputation. The most important question, which service or product in an improved version should be offered in the market, remains untouched in such a transformation

We have previously written about company transformation, now we bring you three steps to addressing employee surplus.

Internal Academy

Organizing an internal academy is most practical within the human resources (HR) department. It is a place for learning and acquiring new knowledge where every employee who, according to the map, does not have sufficient competencies according to clear rules will have the opportunity to gain new knowledge. Depending on the size of the company, the academy can also be organized with external partners. Only if an employee cannot acquire a new competency through training organized internally by the company, does the restructuring program commence.

Open Communication

HR organizes a special communication process between the manager – the surplus employee. It would be good for both the manager and the human resources department to handle this together. Representatives of the workers should certainly be included in the communication (if a workers’ council is organized in the company).

Outplacement 

For surplus employees, it would certainly be desirable to secure a specialized agency in the market that will take care of those who were part of the company until yesterday. Along with the program for managing technological surplus, it would be advisable for the company to engage in ‘outplacement’ (employment of workers in the market). Implementation may include investment in new training (requalification) and engagement with future employers. Such an approach can certainly be successful regardless of the high unemployment rate. Severance pay and investment in requalification are certainly two elements that can increase employability in a structured approach to job searching.