As an Employer, What Am I Responsible to do if Downsizing is Imminent?

As an employer of 70+ employees, and after making every effort to strengthen our business, it appears that the business is headed for a closing.  Though the management team sincerely believes that all efforts have been tried and failed.  Therefore, it is believed that the closure of the business is inevitable.

Obviously, the leadership doesn’t want to create unnecessary panic, and the overall preference is to conclude in an orderly fashion.  Therefore, what steps and productive efforts are recommended in order to position this business with the best possible image and reputation, as well as help the workforce leave their jobs knowing they have done their best?

The Employer and the Workforce have made every effort to manage the business responsibly.   As noted before, the Employer is now seeking what should be done or would be expected of a “responsible employer” to manage the business’ exit as efficiently and professionally as possible?  Most in business would recommend:

  • Evaluate the status of how the projects and clients’ work and conclusions appear.
  • Interview and request how each client rates the management of the work done for them.
  • What is the financial status of the business?  (How much debt and/or savings exists?)
  • Determine among community and business leaders how your business rates?  (Good standing?)
  • Of the clients, who have used your business over the past 12 months, would they use you again?
  • What constructive recommendations would those same clients suggest for your business?

After receiving the findings and responses of this survey, if the feedback was positive, the best step is to keep the process moving in a positive direction by providing Outplacement Services for your workforce.  This recommendation would actually be a wise effort, even if your feedback were less than flattering.  Such professional support could even boost your reputation in a positive direction.  Employers, who demonstrate that they “care” about their workforces by going beyond the minimum assistance, definitely help to improve one’s image.  It relays respect of others.