Situation

A division of a major energy company is the service organization for information technology within the international company. With the IT demands of this major energy company changing strategically and structurally, human resources was faced with ongoing layoffs within various business units. The layoffs would result in the loss of long term employees over a several year period. Recognizing that the costs associated with layoffs would be significant in terms of lost talent, severance benefits, potential for reduced morale and productivity, and for negative impact on talent acquisition and retention, the company sought ways to minimize these organizational costs.

Solution

The company initiated a redeployment effort to positively redirect talent affected by the organizational changes. Employees whose positions were lost through the reorganization were offered a program to help them place within other company entities. Not only did this program communicate the value placed on each employee, but it improved the process for assisting employees in the use of the company internal online placement resource.

The program consisted of a 2-day seminar with additional follow up counseling to assist employees in dealing with the reality of their job loss, developing their resumes and preparing for interviews. Unlike traditional outplacement which focuses on external placement, the redeployment program focused employees’ networking on internal opportunities. The follow up counseling helped employees complete high quality resumes that reflected their accomplishments and skills that would benefit other company entities.

Employees have eagerly scheduled their seminars in onsite locations for convenience, in order to maximize their potential for internal placement. They saw it as an opportunity to gain professional guidance for their internal searches and as a way to enhance their visibility in the organization with top notch resumes. They also recognized the value of improving their interview skills to obtain offers over other potential internal candidates. For some, help in determining their transferable skills was key to developing a strategy for seeking opportunities.

At the same time, management viewed the program as an excellent way to enhance morale during the 90 day period after announcing the layoffs and to mitigate stress and potential loss in productivity. The program also made management’s job of directing the transitions easier and more effective.

Results

The company found that the program succeeded in every objective. After participation of over 400 employees, management observed extremely positive participation, successful placements throughout the company, improved morale among transitioning employees as well as those remaining, and substantially reduced severance costs.

This is just one example of the innovative approaches Dawson Consulting Group provides its clientele in dealing with the challenges of change management. Whether experiencing acquisitions, mergers, restructuring, or other major change initiatives, our team of experienced consultants customizes a solution to achieve desired results.

By Sheryl Dawson, CEO
Dawson Consulting Group

This article was first published in Issue #10 (PDF) of Dawson Consulting Group's periodical, Organizational Advisor. To read other timely and valuable articles, go to the Organizational Advisor page.