Tailoring the right size

The process of downsizing is never a smooth one – it’s a corporate reality that affects a significant portion of the workforce. And for the employees it is an excruciating process marked with confusion and ambiguity. Companies often end up facing redundancies due to changes in business cycles, fluctuating external economic forces, disruptions in markets and mergers and acquisition. Such situations end up creating a business need within companies to lay off employees. Though not in entirety, companies do have the options to create processes and frameworks to mitigate redundancy related risks. Proactive decisions for workforce sizing, skill building and rationalizing cost structures would help companies to reduce the chances of facing redundancies in the coming future. Understanding and anticipating future changes to business can also enable leaders to tailor the right workforce size by taking into account the future risks. And in cases where businesses have already reached the point where, looking down the barrel, layoffs seem to be only option, there is need for fair and right practices to be followed to enable both the company and the affected stakeholders come out stronger than before. It is, therefore, a must for companies in today’s day and age to be able to handle business downsizing in an ethical, rational and legal manner, keeping employees at the center while designing and executing layoff decisions.

But how should one go about it? How can HR professionals work with the top leadership to ensure that business decisions during tough times take into account the human aspect of the firm; to ensure that the concerns and queries of their employees are answered? And how can companies put in practical frameworks that help them assess dangers and bring in preparedness to mitigate redundancy risks? These questions have become even more pertinent after the 2008 economic downturn, with industries still recovering from the after effects. And as market disruptions become a norm, businesses are bound to face tough workforce sizing issues on regular basis.

This feature looks at bringing together opinions by industry experts on mitigating business risks to avoid mass layoffs and to course correct – to understand the need to tailor the company’s workforce.

People are not beans: Visty Banaji, Founder & CEO, Banner Global Consulting (BGC)

Rightsizing & redundancies - A perspective: Sankar Ramamurthy, Partner, Group Advisor- HR, Kalpataru Group of Companies

An opportunity in disguise: Dr. Anil Khandelwal, Former CMD, Bank of Baroda & Dena Bank

Downsizing or Rightsizing?: By Elango R., President HP-SBU, MphasiS

Can technology help talent planning: By Abhijit Bhaduri, Chief Learning Officer, Wipro Group

Rightsizing: A pact between two shareholders: By Chaitali Mukherjee, Client Partner, Korn Ferry Hay Group

Downsizing - A legal view: By Ajay Raghavan, Partner, Trilegal

The beginning of a new journey: By Rituparna Chakraborty, President, Indian Staffing Federation

A balancing act: Stephen Bennett, CEO, Inspirational Development Group