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We face a very bad crisis this year, and predict will continue until even in the end of the year. Many stimulus come from government to save company, they hope that company still can retain their worker as can as possible. But sometimes company decide to do downsizing too. If you are in high management level who have contribute to make a decision, just take a brief consideration before take that way.

Suggest company to have a manpower analysis before Downsize. It is the important thing company must do, they must analysis how important their worker to their company. What have company do for their worker to make them capable enough to work there. If company have trained the worker well and then they cut their employee. it will be a big lose for company. Beside that cost of lay off is not a small amount too.

Bring the idea to your company, the economic crisis is not going to last for ever. When economy starts improving company will have to re-hire people. Re-hiring has a very high cost associated with it. Company will not only need to re-hire people, have to train them to be productive enough and also choose the loyal one too. Are savings from firing today adding to tomorrow’s hiring costs ?

Is the downsizing only one way out?

The economic crisis is forcing you to separate some employee and there is no way around. Do it but avoid creating a panic around, in employees, in investors, by crying loud about the downsizing. If are downsizing, do it as quietly as you can.

Double check your downsizing list to ensure that only low-performers are earmarked for separation. Doing a effective performance appraisal before you earmark employees for separation can help you retain your top talent, while letting low performers go. But don't forget to give them sufficient notice period, so they can find a way to looking for a new job.

Just consider it well before do downsizing, remember employee is one of key success of company. There is considerable evidence that downsizing does not reduce expenses as much as desired and that sometimes expenses may actually increase. And when economy back to normal condition Businesses should instead plan for recovery and they can only do that by retaining their staff. Better suffer now and when they need to go back to run their business they still have full speed to do that. And beside that it will make employee more loyal to company

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