mgmt 306
QAQ474060161
3.5.docxManagement 306
Layoffs
You are the Senior Vice-President (SVP) of Human Resources for a financial software company that has 7,500 employees. In the past, the company has focused on selling a software product, AccountSoft, to large accounting firms. However, AccountSoft has suffered declining sales for the past two years, and management has decided to change the focus of the company to sell to small businesses and individuals. Because AccountSoft no longer fits with the new mission of the company, it will be sold to another financial software company—Accounting Support Services, Inc. (ASS).
The sale of AccountSoft to Accounting Support Services will affect two groups of employees in the AccountSoft division. Software developers will transfer to the acquiring firm, but the sales and marketing staff (about 150 people) will be leaving. This was the agreement with Accounting Support Services as part of the acquisition deal.
To announce the change in company mission, the sale of AccountSoft, and the upcoming layoffs, you advise the CEO to send an email to all employees. You are tasked with writing the email that will be sent. In addition, you will have individual conversations with employees who will be affected by the layoffs.
Write the memo to communicate the decision clearly and help employees understand and accept the change.
Audience
Though you are writing to all 7,500 employees, the sale of AccountSoft will not affect everyone the same. Two percent of all employees will be laid off and an unknown number will be transferred to Accounting Support Services. The remainder will remain with the company, but will need to understand how the change will affect their jobs.
Purpose
Your purpose is to communicate the decision, the facts that led up to the decision, the employees who will be affected by the decision, and future company plans to all remaining employees. Be sure to include specific dates when the changes will occur.
Structure
Structure the "bad news" indirectly. Include at least four paragraphs. The first paragraph will be the context or buffer, the second will be the explanation, the third will contain the bad news, and the fourth will contain the goodwill close.
Style
When conveying bad news, tone is important. Choose a style that is clear and informative, positive and respectful. Consider the reaction to your choice of words conveying the bad news. For example, imagine the difference between saying "unfortunately, valuable employees will be laid off" versus "excess employees will be dumped."
Example
FSE
To: Employees of Financial Software Engineering FSE From: Aguilar, Ozzy CEO Date: November 1, 2016 Subject: FSE Upcoming Changes
I personally, as your CEO, would like to thank each and everyone of you that has contribute to our company's success. If it wasn't because you all have demonstrated dedication at 110%, this company, your company would not be in the position it has been for many years now. As you all know the market has been taken a toll for the past two years in our AccountSoft departments, therefore our company is forced to make some changes that will affect about 2% of us which is around 150 of our employees. In contrast I will also like to extend a few services for those affected.
What Will Change
After two years of declining profits and with the possibility of losing more that what we have invested, the company has decided to sell the AccountSoft department. The selling process will take about four weeks to complete this which will create a reduction in staff. We regret the change, but with a company of 7500 employees this change is the only way to keep the company going for more years to come. By losing 2% of our company employees we can retain the remaining 98% under employment.
Who Is Affected
As 98% of employees will continue to sell and develop software the 2% of the employees currently assigned to the sells and marketing of AccountSoft department will be changed to different positions, departments, or careers. We are doing our best so that the change does not affect more than the 2% target that we are forced to change which is around 150 employees at the moment.
What The Company Is Doing For Yon
The company is working with the new buyers so that they can employ most of the 150 employees affected with this change. They have agreed to employ the software developers as part of the first terms in the contract agreement of the sell. We are also working internally with our Human Resource Department to see how many of the affected we can still accommodate around the company, keep in mind that this will develop pay cuts or a change in position. Management has agreed to take a 7% pay cut to alleviate some of the companies downsizing.
After The Changes
There are a few things that will happen after the sell. The company will use the 7% pay cut from management to put together a resume workshop for those affected. Also, the sick leave policy states that when an employee either quits or gets laid off he/she is entitled to 50% of the time accrued in their sick leave account. This will also change for those affected with the sell of the AccountSoft department, for this time only the company has agreed to pay 100% of the sick leave accrued to the 2% affected. The last thing we will encourage you is to file for unemployment, this for the most part is out of the companies' hands, but we are making sure that the affected know their remaining resources after the sell. I am also willing to personally write a letter of recommendation to those affected upon request.
Once again I would like to thank you for all your support throughout the years. I have enjoyed working with you all and I regret the change we are force to do. I will conduct two meetings on Friday, November 4. Please, prior to our meeting get together with your direct supervisors and discuss any issues you would like to bring before me. The first meeting will be held with the AccountSoft Sales department at 0900 hours, an hour after the department comes in to work and the second meeting will be held with the AccountSoft marketing department at 1300 hours, an hour after the department has return from lunch. At this times I will try and answer all your questions and also take in to consideration any other possible ideas that can help us all. Thank you and I look forward to our discussion.
