The headcount reduction is very sensitive business issue, which makes all the employees nervous. The headcount reduction is about the security of the employees and it is one of their basic motivational needs. When the organization plans the headcount reduction, the employees will feel it and the rumors will spread quickly around the organization.
The headcount reduction is not the easy task as many employees have to co-operate together on the analysis of the headcount reduction and when more than few employees are attached to the headcount reduction analysis, the rumors will spread very quickly.
The HRM Function should be always ready to communicate the plans of the organization as the employees are informed officially from the top management and not from the colleagues in the corridors.
The headcount reduction rumors are very dangerous as the employees feel very uncertain and the overall performance is hardly attacked. The headcount reduction is more attractive than the job content and the employees are in the active search to find the relevant information.
The headcount reduction is very difficult to communicate fairly. When the organization decides about the communication, the top management tends to be very conservative and the communication is very general and not specific.
In reality, the more specific communication is, the better results the communication can achieve. When then employees know the details about the headcount reduction, they know clearly their future in the organization. The communication does not have to be public and some parts of the communication can be specifically targeted through the managers to the concrete employees.
The headcount reduction rumors are dangerous and the HRM Function has to be proud to communicate stronger and more specific messages. As the employees know the truth, they can be sure about their future and the HRM Function can work on keeping the top talents with the organization.
