WILMETTE, Ill., Jul 17, 2008 (BUSINESS WIRE) -- General Motors. Starbucks. American Airlines. Motorola. Almost
every day this summer, across industries and locations, another U.S.
organization announces impending lay-offs.

Is there a right and a wrong way to handle staff reductions?
"Absolutely," according to Jennifer Schade, president of JRS
Consulting, who counsels management and has interviewed more than
1,000 employees of Fortune 500 organizations in the process of
restructuring and laying off employees. "I don't care how necessary
and strategic the decision was to eliminate employees. If you
demoralize your workforce through poor communication, you're going to
be left with the 'working wounded.''"

"The next worst thing to being laid off is being the one to
deliver the bad news," says Schade. "No one wants to do that, and as a
result, sometimes companies really botch communication about this
difficult subject and productivity plummets."

Following are five key guidelines Schade suggests for announcing
staff reductions:

-- Tell employees first, working in collaboration with your legal
department to insure regulatory compliance. Out of respect for
employees, Starbucks is not releasing the locations of store
closings until after it has informed its employees in the
stores targeted for closure. Employees at another company
learned of lay-offs while watching Cable News Network in the
company health club. A staffperson at that firm noted, "I
guess this company just doesn't care about 'the working man.'"

-- Communicate on an ongoing basis, focusing on two kinds of
information: 1.) Have senior management provide information
about the organization's "big picture." It's important to tell
the whole story - why is this happening now? 2.) Direct
supervisors to give employees more personal information about
what the announcement means for their jobs.

-- Take responsibility for the underperforming business. "A
letter posted on Starbucks' website attributes the current
difficulties to 'poor real estate decisions that were made,
coupled with a very troubled economy.'" noted Schade. "Bravo
to Starbucks for acknowledging that its quest for expansion
clouded its judgement in site selection."

-- Listen to employees and honestly respond to issues. Ask for
their input regarding information needs and how they're
feeling about the changes. Ask for ideas relating to working
efficiently with a leaner staff. Then summarize key findings
and address concerns. "Show your human side," said Schade. She
recalled a management team member of a struggling organization
announcing after hearing about findings from employee
interviews, "I'm ashamed. How did we get here?"

       Schade said, "When I heard him, I knew he was going to triumph
        over the situation. He was willing to deal honestly with the
        issues to make improvements."

-- Put some leadership skin in the game. When there are problems
with the business, employees are the first to go. Demonstrate
that "the buck stops here" by announcing how company
leadership is also sacrificing. General Motors announced that
its top executive officers will receive a reduction in their
cash compensation opportunity of 75 to 84 percent.

"Cutting costs by laying off employees isn't going to fix a
troubled organization," said Schade. "It's critical to motivate
employees to get the business on track. Effective communication about
the reorganization is the first step in that direction."

Jenny Schade is president of JRS Consulting, Inc., a firm that
helps organizations build leading brands and efficiently attract and
motivate employees and customers. Get free tips from the JRS
newsletter at http://www.jrsconsulting.net/newsletter.html

SOURCE: JRS Consulting, Inc.

JRS Consulting, Inc.
Jenny Schade
847/920-1701

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