Points on RIF

RIF, or more commonly known as layoff, starts when the company learned it has more employees than it needs. Why? Most of the time, the company did not plan well. It is only academic to dig out the reasons and many MBA cases did. For you, focus on future, not past.

RIF is not cheap for the company that incurs severance costs, legal expenses, disruptions to normal operations, demoralization of employees, and, usually, bad publicity. If not done well, the company may lose critical productivity that lead to loss of revenue and another RIF — so called death spiral.

You can bet that some aspects of the RIF operation will not be done well. It is part human nature to avoid unpleasant tasks and part rushed. Try to appreciate the works senior managers must have done and understand that they actually did not have much time and were very constrained on maneuvering rooms.

The top executives of the company first decide to invest less on particular investment areas, to reallocate its resources, or both. This step is time consuming and gut wrenching. Sometime, we, mid-level executives, get a glimpse of board-room lock-horns. Most of the time, we simply observe the absence of senior executives for days, during which we get urgent and cryptic requests of information. When they come out of the smoke-filled room (OK, this is for drama, they are usually many rooms involved and execs these days do not smoke), each gets a number and a set of guidelines.

Each of the top execs then summons her staff, or few selected advisors, to plan for her number. This process cascades downward to roughly functional VP or director level. At this level, the single number has morphed into a set of actions that include the elimination/reduction of programs, number of people to layoff, a set of communiques, and a schedule. This is the time, you, the line managers, get busy.

First, learn the communiques and guidelines. Practicality does not allow thorough communication. Do not wait for the presentation or in-person training. Go to the web site, read the email, and study the guidelines. Ask questions only after you have done the homework.

Expect whoever planning this operation to have been hurried. Ask questions so that you can do your jobs, there is no need to criticize. This is hard for everyone, not just you. When you get the details, see if they will lead to disasters. If so, escalate quickly, but do not be insistent. No whining and no stating the obvious. Statements such as, “Do you realize this will impact morale and productivity?” is stupid and insulting. But, “if you substitute this with that, company can save more money, or avoid a major disaster” will be much appreciated.

It is human to dig dirt and gossip. That does not make these activities productive or less hurtful. Discourage by smiling and nodding politely. Gossips starve on the lack of excitement from the recipients.

Although not obvious, being laid-off is not really a bad thing. There is no need to be saddened. Sun gives a relatively generous severance and benefits to those laid-off. In a relatively healthy economy (like China), the laid-off employees usually find new job before the severance are used up.

In this industry, each individual faces competition from around the world. Someone from somewhere is trying to have your job, and vice versa. The only protection is your adaptability and professional competency. You are on a treadmill to upgrade yourself all the time. If you are not learning new skills so that you can do something totally different in a few years, you are risking being obsolescent. What are you learning now? Why would the employer pays you so much?

Being part of a lay-off operation bring this point close to home. If you are one that is receiving the package, thank the company to give you few months off to upgrade yourself. If you are a survivor, try to learn this lesson.