DOWNSIZING 
*A downsizing strategy reduces the scale (size) and scope of a business to improve its financial performance.
*A reduction of the workforce is one of only several possible ways of improving profitability or reducing costs.
Call it layoffs, downsizing, early retirement or "corporate rightsizing." It's no secret that pressures to improve profit levels have turned massive workforce reductions into a way of life for many companies. But with this recent trend has come concern and a demand for higher levels of assistance to discharged workers. Companies have explored many different downsizing options, but one pharmaceutical firm has unique solution to this often difficult situation that should be of interest to HR professionals caught in the corporate rightsizing struggle.*
And this company is the Warner-Lambert in which in 2000, Warner-Lambert merged with Pfizer, bringing together two of the fastest-growing companies in the pharmaceutical industry and adding to Pfizer's global strengths and rich heritage. Pfizer Incorporated is a major pharmaceutical company, which ranks number one in the world in sales. With Warner-Lambert, Pfizer gained product lines ranging from Parke-Davis branded pharmaceuticals to Listerine mouthwash to Schick and Wilkinson Sword wet-shave products.
***
Last year, as part of a worldwide restructuring effort, Warner Lambert's New Jersey corporate headquarters eliminated several secretarial and administrative assistant positions. The result was displaced employees whose skills were in high demand elsewhere throughout the immediate geographical area. Rather than losing these valuable workers to competitors or outside placement agencies, Warner-Lambert developed a program that meets the economic needs of both the organization and the displaced employees.
When the downsizing effort began in December 1991, the company established an in-house Temporary Secretarial Department (TSD). Similar to a temporary employment agency, secretaries and administrative assistants who had met acceptable performance standards registered with the TSD by filling out forms listing their various skills. As departmental managers had temporary job openings due to sickness or vacation leaves, they were required to fill the opening through the TSD. Management could only use an outside agency if an in-house temp was unavailable.
"It's really worked out well for everyone concerned," says Mary Gebhard, Corporate Human Resource Representative and head of the TSD at Warner-Lambert. "I match the appropriate person to each opening as it comes up, depending on the skills that are needed, We charge back each department using a temp at a much less expensive rate than they would get from an outside agency, which tacks on a service charge. And our colleagues are happy, since they are employed at the same salary that they were getting before the downsizing began, including full benefits."
Because of the TSD, displaced workers have been able to retain their income and receive training to learn a new skill or to enhance an old one, while still pursuing permanent employment either within the company or outside of it. Employees not out on temporary assignment are kept busy by a constant flow of word processing work.
"We've also offered all colleagues in the Temporary Secretarial Department an opportunity to bid on any full time job openings within the company as they are posted," explains Gebhard. "And if they would like to retrain or learn a new word processing package in order to make themselves more marketable, they have the opportunity to do that as well."
But Gebhard is quick to point out the psychological toll of the downsizing. "At first, the impression among some of the temps was that some people within the company may not give them a fair shot at a permanent opening here. But after a while, they realized that we were serious and we really valued their work."
To help counter any trauma caused by the downsizing, Warner Lambert set up an Employee Assistance Program support group for the displaced workers. "It's really helped them knowing that they could go and talk with others who were in the same position," says Gebhard. "The company also set up a secretarial savvy course that covered skills like networking and resume writing."
Over 50 employees have been in the TSD and to date only 14 remain, says Gebhard. All the others who sought a full time job within the corporation have been placed. Originally scheduled to end June 30, the program has been such a success that it was extended through the summer to give workers an extra three months to find an opportunity.
"It's really been a wonderful answer to what could have been a very sticky problem for our corporation," says Gebhard.
Reference:
http://findarticles.com/p/articles/mi_m3495/is_n9_v37/ai_13590989/pg_1?tag=artBody;col1
http://en.wikipedia.org/wiki/Pfizer
*A reduction of the workforce is one of only several possible ways of improving profitability or reducing costs.
Call it layoffs, downsizing, early retirement or "corporate rightsizing." It's no secret that pressures to improve profit levels have turned massive workforce reductions into a way of life for many companies. But with this recent trend has come concern and a demand for higher levels of assistance to discharged workers. Companies have explored many different downsizing options, but one pharmaceutical firm has unique solution to this often difficult situation that should be of interest to HR professionals caught in the corporate rightsizing struggle.*
And this company is the Warner-Lambert in which in 2000, Warner-Lambert merged with Pfizer, bringing together two of the fastest-growing companies in the pharmaceutical industry and adding to Pfizer's global strengths and rich heritage. Pfizer Incorporated is a major pharmaceutical company, which ranks number one in the world in sales. With Warner-Lambert, Pfizer gained product lines ranging from Parke-Davis branded pharmaceuticals to Listerine mouthwash to Schick and Wilkinson Sword wet-shave products.
***
Last year, as part of a worldwide restructuring effort, Warner Lambert's New Jersey corporate headquarters eliminated several secretarial and administrative assistant positions. The result was displaced employees whose skills were in high demand elsewhere throughout the immediate geographical area. Rather than losing these valuable workers to competitors or outside placement agencies, Warner-Lambert developed a program that meets the economic needs of both the organization and the displaced employees.When the downsizing effort began in December 1991, the company established an in-house Temporary Secretarial Department (TSD). Similar to a temporary employment agency, secretaries and administrative assistants who had met acceptable performance standards registered with the TSD by filling out forms listing their various skills. As departmental managers had temporary job openings due to sickness or vacation leaves, they were required to fill the opening through the TSD. Management could only use an outside agency if an in-house temp was unavailable.
"It's really worked out well for everyone concerned," says Mary Gebhard, Corporate Human Resource Representative and head of the TSD at Warner-Lambert. "I match the appropriate person to each opening as it comes up, depending on the skills that are needed, We charge back each department using a temp at a much less expensive rate than they would get from an outside agency, which tacks on a service charge. And our colleagues are happy, since they are employed at the same salary that they were getting before the downsizing began, including full benefits."
Because of the TSD, displaced workers have been able to retain their income and receive training to learn a new skill or to enhance an old one, while still pursuing permanent employment either within the company or outside of it. Employees not out on temporary assignment are kept busy by a constant flow of word processing work.
"We've also offered all colleagues in the Temporary Secretarial Department an opportunity to bid on any full time job openings within the company as they are posted," explains Gebhard. "And if they would like to retrain or learn a new word processing package in order to make themselves more marketable, they have the opportunity to do that as well."
But Gebhard is quick to point out the psychological toll of the downsizing. "At first, the impression among some of the temps was that some people within the company may not give them a fair shot at a permanent opening here. But after a while, they realized that we were serious and we really valued their work."
To help counter any trauma caused by the downsizing, Warner Lambert set up an Employee Assistance Program support group for the displaced workers. "It's really helped them knowing that they could go and talk with others who were in the same position," says Gebhard. "The company also set up a secretarial savvy course that covered skills like networking and resume writing."
Over 50 employees have been in the TSD and to date only 14 remain, says Gebhard. All the others who sought a full time job within the corporation have been placed. Originally scheduled to end June 30, the program has been such a success that it was extended through the summer to give workers an extra three months to find an opportunity.
"It's really been a wonderful answer to what could have been a very sticky problem for our corporation," says Gebhard.
Reference:
http://findarticles.com/p/articles/mi_m3495/is_n9_v37/ai_13590989/pg_1?tag=artBody;col1
http://en.wikipedia.org/wiki/Pfizer
1 comment:
..Yup..massive workforce reductions can be really tough to both the company and the employees that will be cut off..
nice blog entry..jove..hehe
congrats!
tina_
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