THE CHALLENGE
The client had just six months in which to implement headcount reductions totaling 200 engineers, a challenge complicated by the relatively small size of the game console industry, and the fact that the highly specialized skill set of the engineers in question would not easily transfer to other segments of the software market. Related challenges included:
- The need to maximize job placement opportunities for those being let go.
- The need to minimize any ill-will and prevent damage to the client's public reputation.
- Significant cultural differences between the company’s global HR department and its domestic operation, especially regarding the handling of terminations.
OUR APPROACH
Forced by the tight six-month deadline to circumvent the normal termination process, Ascendant focused on assessing the marketability of the engineers targeted for reduction, and on devising a plan to maximize job placement, while providing the support needed to ensure they would leave the company on positive terms.
- Deliverable: Assessment and Counseling
The Ascendant team assisted the Japanese HR group first in evaluating the general marketability of the 200 engineers, and then in providing one-on-one counseling to the staff in question. This process resulted in our identifying at least 100 engineers whose skills were diverse enough to make them attractive in other, non-gaming sectors, while the remaining 100 had skill sets so specific to gaming that placing them outside of the industry would be a challenge. - Value:
Our emphasis on individual evaluation and counseling enabled us to present the client with a clear set of options for managing the headcount reductions. Our support in communicating with local HR staff and with Global HR management helped to bridge the significant cultural gaps that existed in termination practices and expectations.
- Deliverable: Placement Planning
Based on the individual assessments, and in consideration of the fact that some engineers would be easier to place than others, Ascendant developed a plan for two severance packages. The first, targeting those with more widely marketable skills, would guarantee a salary paid by the company, for one year or until employment was found, and would not require the employee to work during that time. Those choosing this package would be able to devote more time to searching for other opportunities.
The second plan called for the company to provide outplacement support, and, once employment was found, to also ‘top-up’ the individual’s new salary to a level matching their previous pay, for a period of six months. This would provide greater security to those who chose to enter a new software field outside of their game development expertise, possibly in an entry-level position. - Value:
This dual severance plan addressed the realities of the market, while offering the engineers a much-appreciated choice. This approach, which recognized certain cultural expectations, was critical in ensuring that each of them—eventually, all 200 were terminated within the six-month schedule—left the company on positive terms, significantly minimizing any ill-will or subsequent damage to the company’s reputation.
