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Enterprise Imaging's ADVANCE Perspective

“Rightsize”—Where’s the Humanity?

Published February 25, 2008 3:51 PM by Jill Hoffman

The other day, I received an e-mail from a relatively large health care vendor in the medical imaging world announcing that the company was implementing a “rightsizing initiative.” I have heard a lot of public relations-speak in my 13 years as a journalist and editor but I’ve never heard of “rightsizing.”

 

This press release peaked my interest. What, exactly, is rightsizing? Is it anything like “downsizing?”

 

It turns out this initiative—a failed euphemistic attempt to slide across my eyes like skates on a freshly Zamboni’ed rink—was what you might guess: a series of employee and contractor layoffs that included the “reduction of 160 personnel,” which, combined with a group of terminations and attrition numbers, taking into account severance and other expenses, would yield annual cost savings in the multimillions and would return the company “to positive operating results.” The reason for rightsizing, the CEO explained, is the result of the Deficit Reduction Act, two financial restatements and legal expenses.

 

I wonder, though, if the term “rightsizing” is only reserved for journalists, who want to be kept abreast of news in the industry? Or do company officials use it when they’re giving employees the bad news? Does Mr. Manager sit John Doe down in his office to explain that his contributions over the years have been appreciated but low revenues and expenses are becoming a concern to shareholders, and the company has embarked on an endeavor to make things right? Tell him this is all to the greater good and then thank him for his years of service.

 

I don’t think so.

 

If this is offensive to a soon-to-be-out-of-work employee, who may go into foreclosure on his mortgage in a year when he still hasn’t found a well-enough paying job, or one who has to explain to his kids that, no, they won’t be going to the shore this summer, or another who has to tell his wife that the car they just bought will have to be traded in for a less reliable, used one. So why does this company think it won’t offend me?

 

I am appalled at this lack of consideration for these workers, who are being thrust into the panic-attack-inducing scenario of losing their steady pay, eight-hour-a-day focus and some vestige of their professional and personal identity, through no fault of theirs. I am not just an editor looking for news, I am a woman who knows what it’s like to wake up at 3 am, nightly, for six months, with a feeling of dread and terror about whether I will be able to pay the rent that month. Though my previous job departure was voluntary, I can relate to the free-fall sensation of unemployment. And I don’t have a house, a spouse or children.

 

So vendors and PR gurus, take note: You’re not fooling anyone. Layoffs aren’t a good thing, last time I checked, and sugar only lifts me for the short run; then I just get irritable. So let’s show some respect for the people who boosted your bottom line for so many years and not pretend that anything less is right. Forget about good public relations, let’s strive for something better—human compassion.

posted by Jill Hoffman

1 comments

Rightsizing, downsizing, or restructuring are a few of the buzz words for the process of eliminating staff positions.  Staff reductions are usually the result of an immediate need to decrease operational expenses.  The unfortunate fact is that staff reductions are normally the result of poor management at the executive level.  When things are going well and the organization is making a profit, FTE levels are not scrutinized, but when financial goals are not met "knees start to jerk". Since salary costs are 50%-60% of total operational expenses, people elimination makes the greatest impact.  This should never happen in an organization.  Daily scrutiny of managements ability to control productivity in their departments would ensure that FTEs are maintained at a cost-effective level, and minimize the need to "rightsize".

An inappropriate reduction in staff can send an organization into a "death spiral".  Profits are down....cut staff....a smaller number of staff who are demoralized can result in decreased volumes....decreased volumes mean less profit....here we go again, let's cut staff.

Randell February 26, 2008 6:53 PM
KY

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