From the December 2008 issue of Ceridian Connection

Now more than ever, change is the only constant for HR professionals. In today's workforce, change means a national unemployment rate of 6.5 percent, the highest percentage since March 1994. At that time, the economy was in a recovery mode from the 7.8 percent unemployment posted in June 1992.

New claims for unemployment reached a 16-year high in mid-November 2008. As we are bombarded with news of workforce reductions almost daily, how can HR professionals prepare for these sweeping changes in their employee populations? And what can be done to ensure that the employees who keep their jobs stay appreciated and motivated?

Have a process and resources in place
"To be prepared for workforce reductions, HR departments need to have a robust process in place," says Karla Shirley, Ceridian's director of human resources. "These processes are meant to help employees, whether they are directly or indirectly impacted, with the changes that take place during, as well as after, corporate downsizings."

Several resources are available that HR professionals may wish to consider when faced with downsizing. Keep in mind, there is no perfect formula and some of the suggestions depend on your company's situation and budget.

• Consider engaging a third party in the workforce reduction process to ensure objective decisions.
• Offer outplacement services to help individuals, especially those who have not been in the job market for several years, with resume preparation, interview skills, job search databases, and more.
• Coordinate workforce reductions with the appropriate state agency to identify an unemployment professional who can assist employees through the unemployment process and identify the available options.

In addition, one of the main concerns for employees during downsizing is health care. Determine whether your company will offer subsidized health care benefits as part of a severance package and be prepared to answer detailed questions about the coverage.

The Consolidated Omnibus Budget Reconciliation Act (COBRA), which governs extended health benefits for former employees, should not present a problem during downsizing as long as you can trust the management of these services to avoid costly penalties and fines.

COBRA generally requires that group health plans sponsored by employers with 20 or more employees offer employees and their families the opportunity for a temporary extension of health coverage in certain instances where coverage under the plan would otherwise end.

As the nation's largest COBRA administrator, Ceridian Benefits Services can help you manage COBRA while maintaining compliance and freeing your HR department from time-consuming administrative duties. For more information, click here.

Take proactive steps
Good coaches and mentors are invaluable regardless of the economic conditions. This is especially true in an environment where any type of position could be at risk. Shirley states, "When someone comes to me for counseling or just stops me for a casual conversation about their career, I typically ask whether their skills are up to date."

Shirley adds that good managers will counsel their employees about how to take ownership of their development. The perfect time for that conversation is during annual reviews when managers can provide coaching on skills needed to advance or make another internal move. Managers also can recommend online skills inventory resources to assess which of the employee's current skills may be transferable.

Individuals can look outside their immediate department or company and contact professionals who can provide information about the job market and available opportunities. In addition, online job boards offer an opportunity to monitor current job trends. Another option is to schedule an informational interview to learn more about a company without the pressure of a job search.

Dealing with multiple source of stress
With workforce reductions, the legal risks can be one of the most stressful areas to address. Downsizing decisions need business justifications -- including a legal review. The logic behind the decision should also link to the messaging used in your communications with employees and others.

Downsizing also can be difficult from a personal relationship perspective. It is not easy when you, as an HR professional, have relatives, friends, or coworkers who are directly working through a downsizing. "I always take the view that someday this could happen to me. I consider how I would want to be treated in this situation," says Shirley.

What works
As with any business change, good communication is critical during the process of downsizing. The lines of communication start with managers and leaders who can set the tone by showing empathy and respect for employees who are leaving.

Often overlooked in the downsizing process are the employees who retain their jobs. The remaining employee population needs to hear the message that the decision was difficult and not performance related. These individuals should also be made aware of the resources provided to those who have been workforce reduced.

People have different needs for information and support. A reference to an employee assistance plan (EAP) is another resource that can be included in your company's communications. The EAP can be a resource for individuals who have personal questions. These plans offer a range of services from budget planning to counseling managers who may foster feelings of guilt over not being able to protect their employees.

Ceridian LifeWorks EAP and Work-Life Services offer the expertise and flexible support that is needed during a downsizing process. Employees can receive confidential counseling in person, online or by phone any time night or day. Depending on the situation, onsite EAP support also can be offered. Nearly 80 percent of surveyed LifeWorks participants indicated their stress was reduced after using Ceridian LifeWorks to resolve their issues. Promoting and using EAP services to address "survivor guilt" and the variety of associated employee stressors is critical to keeping the remaining staff productive through turbulent times. For more information, click here.