A seven-month project plan was created. Special severance programs were developed and included retention incentives, benefit continuation, job opportunities, and career transition services. These programs addressed anticipated employee concerns about income, benefits, and career.

Six months before the operation was scheduled to shut down, top management met with affected employees to inform them about the decision, the reasons for it, and how they would be impacted. Each employee received a letter from the CEO that detailed their severance package. Employees left these meetings feeling respected and valued for their contributions and committed to achieving the Company’s short-term manufacturing goals.

Top management then announced the outsourcing decision to unaffected employees, explaining the reasons for the decision and how affected employees would be treated. Because communication was open and honest and because management demonstrated considerable respect and sensitivity toward affected employees, unaffected employees remained committed, motivated and productive. Additional employee communications, special events, and top management visibility and support reinforced that employees were valued and respected and how much top management genuinely cared about employees.

Result:  Record-Setting Manufacturing Volume