Reducing force is hard on everyone. It should be used only as a last resort—as it may be viewed as unfair, draining valuable energy and focus from the organization. It may also undermine trust in management, making morale’s recovery a difficult challenge.

Is the problem too little profit or too many people—or both? To the extent that operational alternatives can be considered first, they should. And how about trimming waste in other areas? Money can surely be saved by reducing travel costs; pursuing discount purchasing options; renegotiating vendor contracts; eliminating consultants; and delaying capital expenses.

Before reducing force, consider every possible option. Perhaps training is part of the solution. Maybe technology can somehow help, or a shift in strategy can direct resources in a more meaningful and productive manner.

As you consider your anticipated business needs, you must determine how many employees are required to perform the needed tasks and what skills they must possess. If you have excess capacity, you have no choice but to reallocate or dispel those resources.

In a union shop, seniority determines who stays and who goes. It’s called a “layoff” in that people have recall rights.

A “reduction-in-force” is what takes place in most office environments. Recent performance evaluations and skills among workers with similar job functions are the focal points for decision making, not personalities and relationships. All employee actions are considered final.

When you think your list is in pretty good shape, be sure to have your human resources professional, corporate attorney, or outside counsel with employment law experience review all materials.

Ambiguity or absence of communications can create a void in your organization that might be filled with rumor and hearsay.

Be honest. Tell people what’s going on and why. The subject matter isn’t pleasant, but it’s best to have open discussions and to deal with it. Allow people to freely speak their minds to give the remaining employees a chance to pause, reflect, and move forward in unity.

How people are treated as they leave is important. It not only impacts those affected, but it also has a ripple effect on the morale and productivity of the “survivors.” For as much as you think it’s business, it is indeed personal. Very personal.

As with all separation choices, decide with your head; enact with your heart. Treat everyone with respect; treat them the way you would want to be treated. Be sensitive to the feelings and perspectives of those leaving, as they may be surprised, angered, hurt, and disappointed. To the extent possible, extend severance, benefits continuance, and career counseling. If your organization can be more generous, do so. This is a time to show you care.

This is a fine line to walk. The angel on your right shoulder wants to give people as much notice as possible so that they can be forward-focused, understanding the reality of the situation, and planning accordingly.

The devil on your left shoulder fears too much notice might result in a productivity drop, declining morale, apathy, or even sabotage. In addition, people might prematurely bail on you if you have transitional needs.

The real determining consideration here isn’t so much timing; it’s trust.

To the extent practical and reasonable, you should let people know what may be or is on the horizon. Surprises will cause your team to mistrust you and to lose their respect for you—particularly when the “survivors” find out that you had awareness of the situation well in advance. Without your team’s trust or respect, your workplace climate runs the risk of turning toxic—which could take years to correct.

There was a time, particularly in the early-nineties, when large companies found themselves reacting to disappointing quarterly financial results by having layoff after layoff. This repeated exercise, without strategic intent or linkage, destroyed management’s credibility, vanquished employee loyalty, and had a detrimental impact upon those organization’s effectiveness and efficiencies.

Cutting off the dog’s tail an inch at a time only has a downside. To the extent possible—recognizing that there are no future guarantees—try to get the downsizing behind you as soon as possible.

Maybe there is nothing you can do to avoid the downsizing that you’re faced with today, but you can prepare for tomorrow

Staff cautiously and deliberately. Build your team around a core group of employees to handle the minimal work requirements. Cross-train your team as possible—giving you organizational depth while your team members expand their life skills. As the business grows, consider using contractors and consultants as staffing options. Also, flexible workers—part-timers, telecommuters, retirees, and stay-at-home parents—might be part of the solution.

These contingent staffing resources can require customized compensation arrangements, but they can give you the flexibility you need until you can commit to a “full-time employee.”