The Ethics of Downsizing

The ethics of downsizingPosted by Jesse Nunes at 10:25 AM

It's a scary time out there. Millions of Americans are worried about the financial crisis, and with each day that passes it seems another major bank or company either bites the dust or gets swallowed up by a bigger entity -- or the government.

With companies large and small facing a credit crisis that severely limits their ability to borrow, downsizing is a real threat for many US workers. (Check out today's story in the Globe on how the crisis is affecting small business in Mass.) Even those who thought their jobs were secure are probably playing the painful mental exercise of imagining what they'd do if they lost their job.

Getting laid off is not any easy thing to endure. In BusinessWeek, "Ethics Guy" Bruce Weinstein writes that "getting fired is the eighth most stressful life experience, behind the death of a spouse (No. 1) or going to jail (No. 4), but ahead of the death of a close friend (No. 17), foreclosure on a mortgage or loan (No. 21), or in-law troubles (No. 24)."

And while doing the ethical thing may not be the first thing on your mind when you lose your job, Weinstein writes that it's critical – for both your mental well-being and future job prospects – that you handle getting laid off correctly. In a two-part series in BusinessWeek, Weinstein offers tips for those who are on both sides of the downsizing issue -- employers and workers. Here are samples of some of his advice for workers:

1. Get angry ... later. It's easy to react with hostility when you're told that your position is being eliminated. Don't... It's only human to be terribly upset or even filled with rage, but acting on those feelings may violate the do-no-harm principle. Less obvious but also important to think about is the damage you would do to a valued relationship that you may not be able to undo. You won't regret holding back, but you will regret losing your cool.

2. Don't take it personally. We'd like to be able to control our lives and shape our destiny through the sheer force of will, but sometimes things happen to us that have absolutely nothing to do with what we've done or who we are. This is one of those times.

3. Get a recommendation. One of the best ways for a potential employer to find out how valuable you are is to hear from your current boss, but you may have to be the one to make this happen. Get a recommendation in writing as soon as possible. Volunteer to write it yourself. If a letter is out of the question or doesn't arrive in a timely fashion, ask your boss to send you a short e-mail; even a one- or two-line testimonial will do. Get your boss's permission to put his or her direct phone number on your résumé and give out at job interviews.

4. Be a self-promoter. We're raised to believe that it's wrong to toot your own horn, but if ever there were a time to put that belief aside, it's now... One of our greatest challenges is striking the right balance between self-absorption and devotion to others. Still, there is not only no harm in standing up for yourself; it is unethical not to do so.

5. Grief is good. Grief is a natural and healthy response to losing something or someone of value in your life, and taking your grief seriously is another important way to treat yourself with kindness. It is a sign of strength, not weakness, to seek counseling in the wake of being downsized. If you sustained an injury to your back, you would have no qualms about getting physical therapy. Why shouldn't you seek the appropriate remedy when your world is turned upside down? Many of us still attach a stigma to psychotherapy—wrongly so.

6. Accentuate the positive. Is it possible that one of the worst things that could happen to you might turn out to be the best? Take a look at Harvey Mackay's We Got Fired!: ... And It's the Best Thing That Ever Happened to Us (Ballantine Books, 2004). Michael Bloomberg, Muhammad Ali, Billie Jean King, Home Depot founder Bernie Marcus, Lee Iacocca, and Robert Redford are just a few of the wildly successful people who explain how losing a job led to something much better.

(Read the complete articles on BusinessWeek's website: Part 1 and Part 2)
Of course, following such a plan is easier said than done when your way of life is at stake. As the Job Doc pointed out in a recent column, it is hard for some to move on when they lose their jobs.
Many Boston.com readers chimed in on a discussion thread on the topic of being 'wronged on the job', and it is clear that, even many years after being slighted, many still hold ill feelings toward their former employers.
How would you deal with a layoff? Have you been through this before? What steps have you taken to prepare for the worst?