Under-Communication Causes Fear in Downsizing

Business & Finance - Economy

Tuesday, 23 March 2010 14:20

Written by Mark Dunphy

A business seminar hosted by Shannon Chamber of Commerce has heard how important communications between the management and staff of Irish companies is more important than ever.

“Addressing and managing the separation of employees from a company in a downsizing is a difficult task for any organisation,” said Miriam Magner Flynn, managing director of Limerick-based Career Decisions.  Ms Magner Flynn, who had led the downsizing and restructuring of many large companies throughout Ireland, added: “If a redundancy is handled badly, with poor communication and poor career support for departing or surviving employees, then companies can expect departing employees to be extremely angry and hostile towards the company. The morale of remaining employees will significantly drop, with a corresponding drop in productivity, and the organisation’s brand and reputation may be seriously damaged”.

“Redundancy causes stress and upheaval at many levels, not just internally with employees but externally, with suppliers and the wider business community - local, national and international. All the signals emanating from such situations must be planned for and communicated in an open and honest way," she added.

Ireland’s future lies in knowledge and skills-intensive sectors, with further losses expected in the low skills arena in the years ahead, according to a report launched by the EU Commission – New Skills for New Jobs:  Action Now. “This report has a serious message for people facing redundancy or for those concerned about enhancing their future career prospects. It highlights the necessity for career transition support to clarify their future career direction, their training and development needs, as well as producing quality CVs and interview coaching.” said Ms Magner Flynn.

Similar sentiments were expressed be fellow presenter Derek McKay of Adare Human Resource Management, a vastly experienced practitioner specialising in employment law and human resource management.  “While we are now seeing a lot more redundancies, lay offs and short-time working, changes in working conditions are also prevalent. The change trigger is often beyond the control of the people who experience it so the first step in any change management programme must be to manage the people experiencing the change,” said Mr McKay.

Shannon Chamber will put the spotlight on retirement in a series which commences tomorrow.  The three-part series, which is being offered in conjunction with Career Decisions, is designed tol help individuals to develop options, make plans and take actions towards a successful and enriching retirement life. Career Decisions’ retirement programme will also challenge and reality test the retirement expectations of each participant and assist individuals to understand the challenges associated with loosing their corporate sense of identity, their work family and friends, money and status, and manage the transition from working forty hours per week to a successful retirement.

Further information from Cathy O’Brien at Shannon Chamber: Tel. 061 708341.