This document discusses survivor syndrome, which refers to the negative psychological effects experienced by employees who remain with an organization after downsizing or layoffs. It outlines the definition of survivor syndrome and examines how HR can minimize its impact. This includes effective planning, communication, supporting surviving employees, and rebuilding trust. Case studies are also presented to demonstrate different approaches to downsizing. The document concludes with questions about survivor syndrome and how organizations can best support surviving employees.

1. Survivor syndrome & survivor guilt; looking after the people left behind by Toronto Training and HR March 2011

2. Contents 3-4 Introduction to Toronto Training and HR 5-6 Definition 7-8 Drill 9-14 Planning and communicating 15-27 Downsizing 28-30 What can HR do? 31-34 Reactions of survivors 35-37 Stages of the process 38-45 Minimizing the impact of survivor syndrome 46-49 Case studies 50-51 Conclusion and questions Page 2

3. Page 3 Introduction

6. Improving employee engagement & morale

8. Page 6 Definition What is survivor syndrome?

9. Page 7 Drill

10. Page 8 Drill

11. Page 9 Planning and communicating

12. Page 10 Planning and communicating 1 of 5 PLANNING; PAY ATTENTION TO… Awareness of current economic climate Fair and appropriate selection processes Transparency of processes Strength and style of leadership Evoking and maintaining trust in the organization The value applied to those that leave and those that remain

13. Page 11 Planning and communicating 2 of 5 COMMUNICATING; KEY STEPS… Giving advance notification of reasons and processes Being open and honest Making senior management more accessible Encouraging employee participation at all stages possible Maintaining a consistent information flow Ensuring fair and transparent selection processes

14. Page 12 Planning and communicating 3 of 5 COMMUNICATING; KEY STEPS… Communicating provisions made for those who leave to those that remain Over-communicating, and beginning early Giving Realistic Downsizing Previews Paying particular attention to the needs of line managers, who will be coping with stresses/anxieties of their own and their team Communicating, understanding and appreciation for those that remain

15. Page 13 Planning and communicating 4 of 5 REALISTIC DOWNSIZING PREVIEWS-ALL Ensure that employees understand the new employment contract Provide tools for career self-management Train managers to address needs of employees Never provide inaccurate information Provide information to employees with empathy Help of ‘star employees’ and ‘opinion leaders’ should be sought Over-communicate and communicate early

16. Page 14 Planning and communicating 5 of 5 REALISTIC DOWNSIZING PREVIEWS-TERMINATED EMPLOYEES Provide greatest possible amount of advance notification REALISTIC DOWNSIZING PREVIEWS-SURVIVING EMPLOYEES Ensure that survivors are aware the assistance provided to terminated employees Attempt to reduce non-essential tasks from survivors’ workloads

17. Page 15 Downsizing

18. Page 16 Downsizing 1 of 12 REASONS FOR DOWNSIZING Restructuring Delayering Changing organizational culture Technology enhancements Outsourcing Lack of funding Different competencies Global competition Multi-skilling Merger or acquisition

19. Page 17 Downsizing 2 of 12 MOTIVATORS Cost reduction Productivity improvement Responding to competitive threats Consolidation after a merger or acquisition Increasing efficiency

20. Page 18 Downsizing 3 of 12 ADVERSE EFFECTS Decrease in morale Increase in absenteeism Reduction in job motivation Reduced organizational commitment and employee engagement Risk avoidance Reduced speed of decision making Decrease in productivity Increased level of workplace stress Greater task focus by managers

21. Page 19 Downsizing 4 of 12 SURVIVOR SYMPTOMS Fear, insecurity and uncertainty Frustration, anger and resentment Unfairness, betrayal and trust

22. Page 20 Downsizing 5 of 12 ORGANIZATIONAL OUTCOMES Decreased morale Reduced motivation Reduced engagement Risk avoidance Loss of productivity

23. Page 21 Downsizing 6 of 12 ISSUES TO BE CONSIDERED Define and analyze the organization’s competitive position Determine the appropriate workforce structure to sustain competitive advantage Conduct a skills need analysis Match existing skills of the current workforce to skill sets needed Evaluate the current HR practices Identify critical HR areas of concern Determine alternatives to address key HR issues Appropriately consider the positive and negative outcomes of the alternative

24. Page 22 Downsizing 7 of 12 STRATEGIES TO ADOPT Recognize it will be painful Remain objective Have a well thought-out plan Come to a consensus Treat employees with respect Offer as much support as possible Communicate clearly and honestly Ensure resilience Look to the future Re-recruit remaining people

25. Page 23 Downsizing 8 of 12 GIVING BAD NEWS-ERRORS TO AVOID Being cold and abrupt Being woolly or vague Using complicated language Using position of authority

26. Page 24 Downsizing 9 of 12 BEFORE Prepare Consider location Privacy Be well informed about process/able to answer questions What support is on offer, contacts etc. Provide everything in writing

27. Page 25 Downsizing 10 of 12 DURING Be observant Pay attention Speak slowly and clearly Avoid jargon Prepare opening statement after greeting Don’t delay but don’t rush either Be prepared for questions you will find hard to deal with Be respectful Information not catastrophe

28. Page 26 Downsizing 11 of 12 AFTER Don’t end meeting abruptly Ask again for questions Offer any addition information Summarize Ensure if needed time out or somewhere to sit Forum for follow up

29. Page 27 Downsizing 12 of 12 THE ROLE OF DOWNSIZING AGENTS (DAs) Get involved in decision-making about the downsizing process whenever possible, so they have the information needed to counsel departing employees and survivors Have opportunities and resources to debrief other DAs, so strategies can be shared for managing through the layoffs, which could include peer associations Make use of stress-management initiatives and discuss their experiences openly, so they can interact with other survivors in healthier and more positive situations

30. Page 28 What can HR do?

31. Page 29 What can HR do? 1 of 2 Explain to remaining employees their importance to the organization Coaching can help people to redefine their value to the reshaped organization Managers should ask their teams to air their concerns and communicate fully with them Demonstrate how everyone fits into the business’s overall structure Find creative ways to help employees bond with each other again Encourage people to look after themselves to reduce stress

32. Page 30 What can HR do? 2 of 2 Having a strategic role in the organization Developing the HR vision and mission Measuring the effectiveness of HR policies and practices Providing leadership during change Facilitating the change process Being accessible Ensuring fair and legal implementation of procedures Being responsive to business needs

33. Page 31 Reactions of survivors

34. Page 32 Reactions of survivors 1 of 3 EMOTIONAL CLUSTERSAnger over lay-off process Depression and fatigue Dissatisfaction with planning and communication Distrust and betrayal Job insecurity Lack of management credibility Lack of strategic direction Risk aversion and reduced morale Short-term profit orientation Unfairness

35. Page 33 Reactions of survivors 2 of 3 Fearful Task-focused Defensive Sense of loss Let down Angry Bitter Trapped Guilty

36. Page 34 Reactions of survivors 3 of 3 Attitudes of survivors Performance of survivors Expectations of survivors

37. Page 35 Stages of the process

38. Page 36 Stages of the process 1 of 2 SURVIVORS Whew! I made the cut I have to do all this work They don’t appreciate me

39. Page 37 Stages of the process 2 of 2 TRANSITION Initial shock Minimizing/denial Loss of confidence Confusion/depression Crisis Recovery Renewed confidence

40. Page 38 Minimizing the impact of survivor syndrome

41. Page 39 Minimizing the impact of survivor syndrome 1 of 7 Awareness of the prevailing economic climate Fair and appropriate selection of those laid off Awareness of the level of managerial trust in the organization Processes conducted by strong leadership Values applied to employees who remain with the organization

42. Page 40 Minimizing the impact of survivor syndrome 2 of 7 Communication of the reasons for and the process of the downsizing decision Open and fair treatment for all who are released from the workforce Organization-wide help groups for all Management and/or union involvement Information given on the future of the organization Active consideration given to the changes in the life of the survivor in respect of environment, workload and daily life

43. Page 41 Minimizing the impact of survivor syndrome 3 of 7 To improve trust in management: make senior management more visible explain reasons for downsizing explain criteria used to decide who was terminated To improve morale: provide many opportunities for employees to have questions answered communicate as specifically as possible the future mission of the organization let survivors know how terminated employees are being supported

44. Page 42 Minimizing the impact of survivor syndrome 4 of 7 To improve productivity: train supervisors in how to motivate and manage survivors help survivors determine how to handle increased workload To improve stress levels: train survivors how to manage change and transition

45. Page 43 Minimizing the impact of survivor syndrome 5 of 7 REBUILDING WORK TEAMSGoing over new duties (Manager: We will need you to assume _____ responsibilities) Re-establishing trust (Manager: I understand that workers are anxious and insecure – let me assure you that you are a valued employee) Focusing on the future (Manager: We had to let XX go or jeopardize the company’s long-term finances – but in so doing we are looking at taking YY positive steps this year).

46. Page 44 Minimizing the impact of survivor syndrome 6 of 7 COMMUNICATION GUIDELINESRecognize and allow for the natural reaction of employees Realize that for many people the grief they’re experiencing is very real Maintain open lines of communication Management must empower employees Lead the organization beyond the challenge

47. Page 45 Minimizing the impact of survivor syndrome 7 of 7 KEEP EMPLOYEES ENGAGEDAcknowledge the loss Don’t take the attitude “they should just be happy to have a job” Communicate early and often Continue employee development Build your bench strength Continue to give performance appraisals Ensure that communication is two-way Make employees an integral part of the turnaround plan Do whatever it takes to maintain the company culture

48. Page 46 Case study A

49. Page 47 Case study A

50. Page 48 Case study B

51. Page 49 Case study B

52. Page 50 Conclusion & Questions

53. Page 51 Conclusion Summary Questions