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Corporate Trainers—Improving Communication and Helping Employees During Downsizing
September 02, 2009
By George Hughes
Scenario
• There was a hostile takeover of a mid-sized biotech company by a large pharmaceutical company.
• Senior management of the large company decided there was duplicity of functions for the medical science liaison (MSLs) in the two companies. There were approximately 100 employees in each of the two companies' MSL groups. The characteristics of the MSL group of the mid-sized company are compared to the large company:
• Employees with more tenure (20 years vs. two-to-three years).
• Extensive experience with at least a dozen product launches.
• Long-standing relationships about scientific and product integrity with thought leaders and physicians.
• Extensive, measurable contributions to the sales and marketing of products over decades which significantly enhanced the bottom line.
• In the large company, the key requisite for continued employment was the attainment of a doctorate-level degree (preferably a doctorate of pharmacy), regardless of length of service, or expertise. This requirement essentially eliminated all the MSLs in the mid-sized company.
• The large company chose to use junior-level human resources managers to inform middle management of the MSLs of the mid-sized company that the services of their entire group were no longer needed. No communication occurred from senior management of either company, neither before, nor after the announcement of termination.
• The middle-management of the mid-sized company was told to inform their employees within hours of the "news." The reactions of shock, dismay, denial, and anger were predictable. The next several months were spent helping the employees to prepare for termination, retirement, or transfer, and with minimal support from human resources of either company. It was not uncommon for the remaining management to have personal discussions with employees who experienced symptoms of depression, decline in health, and concerns about pension and benefits. In addition, most of the administrative support personnel were either transferred, or their jobs were terminated, well within the three-month deadline.
• Key customers and thought leaders, with whom the MSLs of the mid-sized company had long-standing rapport, could not believe these draconian measures were taken. Many withdrew support for the large-sized company and worked with competitors.
Recommendations for improved communications
• Senior management of both companies should have played a more active and proactive role with those employees whose jobs were to be terminated. Senior management of the large company could have chosen to meet with the middle-management of the large-sized company ahead of the announcement of termination. This would have given them time to prepare for the "news." Optimally, a face-to-face meeting of a member of senior management of the mid-sized company, a representative of senior management of the large company, members of human resources for both companies, the heads of the large company's and mid-sized company's MSL groups, and the employees could have been held. Q&A could have been conducted which might have helped put the termination announcement in a better context.
• Optimal communications and attention to the human side of the equation was sorely neglected. Had the companies provided a more comprehensive plan and timely transitioning of employees and their customers, the reputation and long-standing relationships could have been preserved. While it was inevitable that the "more seasoned workers" would face early retirement, the failure to capitalize on their expertise and experience in a timely fashion was a cardinal mistake. A "passing of the torch" should be a carefully construed process, otherwise downsizing often will be followed by "dumb-sizing," and ill feelings can be pervasive among key customers.
Recommendations for Helping Employees During Downsizing
The corporate trainer (e.g., for management, human resources, and others) should act in a comprehensive manner and be able to address many of the following aspects (list is not exhaustive) for the employees experiencing downsizing:
Mental
• Emphasize change is inevitable; embrace it.
• Use this experience as "stepping stones not stumbling blocks."
• Seek help if there are other signs of depression or anxiety, and recommend they seek professional medical advice.
• Recognize the employee may go through several phases during the transition such as denial ("I can't believe this is happening"), anger ("Those people don't know what they're doing!"), bargaining ("What can I do to change things?"), and acceptance ("I guess it was my time to go").
Physical
• Emphasize that it is important to take care of one's self and one's family.
• Eat properly, get adequate sleep, and exercise regularly.
• Seek professional medical advice if health problems arise.
Spiritual
• People of faith have a foundation to help themselves through tough times; consult with a spiritual advisor (e.g., pastors, ministers, rabbis. etc.).
• Stay in contact with family and friends.
Financial
• Have adequate emergency funds (six-to-eight months of salary-equivalent funds).
• Apply for temporary unemployment checks, if necessary.
• Re-examine health and life insurance needs.
• Check eligibility for Medicare and/or Medicaid, as applicable.
• Examine cash flow and debts, and make necessary adjustments.
Business relationships
• Network with colleagues or other business associates for jobs.
• Consider part-time employment.
• Keep résumé or curriculum vitae up to date.
• Take advantage of professional societies for possible jobs.
George Hughes, Jr., MD, FACP, is the principal of the medical consulting firm, Galahad Consulting PLC. He has more than 30 years of experience in the development of pharmaceuticals and medical devices. He is the author of "Pfarma Pfables," an illustrated book about anticipating business and career changes from animal-points of view.
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