Aug. 24, 2008

The New York Times

After a Downsizing, How to Motivate?

The wobbly economy is producing a steady stream of layoff announcements – the number of extended mass layoffs rose 8 percent in the second quarter, based on preliminary numbers, versus the period a year earlier. So it’s more important than ever for managers to understand how best to handle these downsizings, not just for those who lose their jobs, but also for those who are still working.

Managers need to listen to employees’ reactions to layoffs, experts say. This can help employees move on and focus on new responsibilities and objectives. For example, ComPsych, a provider of employee assistance programs, runs seminars at companies that have eliminated jobs; the first half of the program often consists of employees talking about their reactions to the layoffs, said Anita Madison, the company’s vice president for training and consulting.