The decision to downsize is painful for any company, large or small. But a well thought-out plan can minimize the toll it takes on employees and on the bottom line.

That’s what Kyocera America did with its recent realignment. The company hired Spherion Human Capital Consulting Group, a career transition consulting and outplacement services company, to plan and put in place a downsizing blueprint.

“We asked Spherion to advise us on how to best handle this unfortunate situation,” says John Schierer, general manager of support and administrative service for Kyocera America. “They were able to sit down with us, take our input and design a highly personalized outplacement program that assisted each employee based on their length of service and technical background.”

A smooth and emotionally deflated downsizing depends on three key elements.

“It has to be well-planned, well-communicated and well-executed,” says Leslie Thorp, general manager of Lee Hecht Harrison, an international career services company that’s been in San Diego 15 years. “The first step would be to really plan the process rather than make it a knee-jerk reaction that’s put together and executed in one day.”

A large number of variables need to be considered, such as the number of employees to be cut, what departments can be minimized, the criteria for selecting the individuals whose jobs are going to be eliminated, if individuals should be let go on the same day or gradually, and what kind of separation benefits will be offered to those leaving.

“I’ve seen organizations that have put together a workforce consolidation at the last minute without thinking through the ramifications,” says Bob Glasberg, senior vice president and manager of Spherion’s San Diego office. “Their main purpose is to conserve capital, but six months or a year later, the organization is struggling.”

Communication to both employees leaving and staying is another critical factor. “This is where most of the blunders happen,” says Thorp. “It’s easy for managers to stumble or miscommunicate. This is one of the most difficult tasks they’re called on to perform. That’s why we recommend organizing a managers meeting and giving them actual language to use. That way the message is consistent and it doesn’t leave a bad taste in the employee’s mouth.”

Most businesses agree that it’s crucial to preserve an employee’s dignity in these situations. Outgoing employees must feel fairly treated and have had the news communicated to them in a sensitive manner.

It’s equally as important for the company to communicate effectively with the remaining workforce.

“This is like cutting off a limb and the rest of the body has a shock as well,” says Karleen MacKay, Spherion’s senior vice president of professional services for Southern California.

Remaining employees can suffer from survivor’s guilt and the sense they may be next. This is an important time to revitalize their commitment to the company in order to help move the business forward. Today, resiliency is a crucial characteristic in a workforce.

Finally, it is incumbent on an employer to make sure a downsizing is well executed. Are there boxes available for employees leaving? Are carpools considered? Are all the pieces in place so the employees know what’s happening to them next?

Having in place a comprehensive plan for downsizing can ultimately reflect on a company’s future success. When a downsizing is well executed, it minimizes such financial risks as lawsuits, rehiring and training, a sluggish remaining workforce and even employee violence.

It’s also good for a company’s reputation in the long term.

“San Diego has a small-town feel when it comes to the business community,” says Thorp. “People hear how a company treated its employees and let them go. Someday, that company will be hiring again and a good reputation will help them acquire high quality personnel.”

That, in turn, can produce a company’s desired result when a downsizing is required — a solid, successful business.

“It’s a small investment to do things right,” says Tom Searles, senior consultant for Spherion’s San Diego office. “And the results are actually measurable in real dollars.”