The Headcount Solution : How to Cut Compensation Costs and Keep Your Best People

Life will go on. You must show leadership by setting a positive example for those who remain after the layoffs. They are the people who will take the journey with you—the people who will turn your business around.

If you don’t take action quickly, a “survivor syndrome” will set in. Sufferers will feel guilty: “Why me?” Many will become cynical: “What’s the use? I’ll probably be cut in the next round of layoffs!” Imagine trying to unleash creative energies and risk taking when people are suffering such a malaise.

Motivating the survivors will require you to:

• Honor those who have left—acknowledge their contribution.

• Emphasize “that was then and this is now”—focus everyone on the future that lies ahead.

• Reinforce what will happen when the business turns the corner — let people know what that will feel like.

• Attach significant monetary and nonmonetary incentives to specific recovery milestones.