CAREER ADVICE:Cutting valued staff a tough call

Dear Aoife

I'm in a terrible dilemma. Over the years I've built up a very good hand-picked team of people working in a highly pressurised part of the business. Our business, like many others, has slowed down in the last six months. We still have work, and I believe we will survive the current downturn, but we are simply nowhere near as busy as we were last year.

We had cut some costs at the start of the year and everyone took a salary reduction. But now, that's not enough, and we have to cut costs again. I will have to reduce the number of roles in my team by a third, which will mean that five people are likely to lose their jobs through redundancy.

I can't even begin to think of how to go about it.

We've had minor shake-outs in the past, but there were a few key differences between then and now. The cuts were smaller, it was relatively easy to decide who should stay and who should go, and I knew that there were plenty of opportunities out there for anyone who left us.

This time, there's no one I want to lose. Every person on my team is adding great value. They're all good. We've invested heavily in them. And while I'll be conscious of using the right procedures in my decisions, in the end, it's just going to come down to me choosing.

For the ones I have to let go, I know there aren't any jobs out there. I know because some of our competitors have already let some people go - and I've had some of their CVs come in to us. I know as well that, when those CVs came in - a small voice in the back of my head was saying, "If you were really good, they'd have found some way to hold on to you."

The same will now happen to five of my team. And it wouldn't be true. These are people you would want in your company. My decision has to be implemented by the end of April.

Dear Jo

Your problem is, unfortunately, far from unique. And as you observe, the way of recruiting and developing key staff over the past 10 years has improved in companies like yours, making selection decisions you face even harder.

Clearly this unpalatable task must be done on a rational basis, and not an emotional one. If your company has a HR department I'm sure they will be supporting you and your team through this difficult time.

Changes of this nature do need to be well managed and planned.

Let your mind jump forward to a date in the future when the number of staff has been reduced by one third. The first thing to be said is that the work your unit will do then won't be the same as now. Some functions will change, some will no longer exist, and you may be asked to take on some new responsibilities.

You must try to design a new business model for your unit, rather than think in terms of salvaging what you can from the old one. Is the unit split into sections now? What will this look like after the change? You need to have a sense of how the overall shape of the business will change, and redesign your unit to reflect this.

Then, and only then, can you begin the process that will ultimately help you to put names and faces to the team which will take the business forward, and those you will have to manage without. When the functions are identified, the required skills and competencies will follow. Clarifying what is required for each role will help you make the difficult selection decisions required. That may seem hard to believe now, but that's the way it usually works.

Remember this. Throughout this type of uncertainty and change within the business, you have a responsibility to both the company and your team. Whilst there will be processes and procedures to follow, you must always keep the feelings and needs of your team at the front of your mind. Key to this will be communication.

Ultimately, when you unveil your plan, you are going to have to talk to everybody involved. You'll have some unhappy people asking you "why me?" You owe it to them to have an explanation. It may not be one that they are going to be happy with it, but they need to understand why the decision was taken. At least those affected have an explanation for family and friends, and eventually they may come to accept it for themselves.

A little recognition will work wonders

Dear Aoife

I know that not many people will have much sympathy for the public service in the present climate, but we have problems too. I'm running a customer-facing business unit. I won't say any more than we are seeing a lot more members of the public this year than we did 12 months ago. The increase in the work-load is horrific. I'm told I have to make do with current staff numbers for the foreseeable future.

I don't want to exaggerate, but sometimes I feel we are under siege.

People who come to us for service are generally doing so because something has gone wrong in their lives, and I encourage my people to try to be helpful, but to keep in mind that there is a backlog and a lot of other people waiting for service as well. If someone wants to tell a bit of their story, try to listen to at least some of it, has been my mantra up to now. But when the workload increases by 40 per cent, that is no longer possible.

Everyone is working harder and doing it without complaint. Up to now, I had some discretionary ways of rewarding performance, opportunities to work in other areas, a half day, a night out. Not any more. The most diligent and the bone idle get exactly the same rewards, and that does nothing for productivity or morale.

Many are on low pay, and the three per cent pension levy and the tax levy and the freeze on pay increases hurts them too. Meanwhile, the media churns out an unending stream of fat cat public service bile, jobs for life, Rolls Royce pensions etc, and abuse about the benchmarking process, which did very little for many of my people.

Dear Pat

Some people reading this column today will say, "But at least, Pat, your people have jobs." And you appreciate that they may find it hard to sympathise.

In any climate, motivating people does not come down to rewards. Yes, of course a reward has a value when you recognise someone's performance by giving them a voucher for a meal, or some time off.

They appreciate it, but what they really appreciate is the recognition itself, the fact that you noticed what they had done and went to some trouble to recognise this - not the size or the value of the "gift" you hand them. If it was a hand-written letter of thanks from you telling them how much you appreciate something they have done, I will bet they would be just as chuffed.

In this climate, many people are re-evaluating and recognising the worth of what they have. I suspect they appreciate that they are fortunate, which is why you can see that they are doing the additional work without complaint.

You should now look for ways - that don't have to cost money - to show them that you appreciate their effort.

Show them that you intend to invest time in helping them develop.

Talk to them - let them know that it won't always be like this. Thank them, individually, for what they are doing and the extra effort you can see they are putting in.

And it should never be the case, as you said, that "the most diligent and the bone idle get exactly the same rewards". They should not.

It should be clear and evident every day in your actions and words that you can see the difference. It should be clear to the "bone idle" that you are managing their under-performance. And while you may be limited in the sanctions available to you, you cannot let it go.

People want to be treated fairly. Fairly in this instance means that your attention, your appreciation, your coaching and your recognition are being spent on the people who merit them.

AOIFE COONAGH is head of the career development unit at Carr Communications. The case histories published are true, but details have been changed to avoid identifying individuals and companies. If you have a problem you would like to see featured, or wish to comment, e-mail askaoife@irishtimes.com