In the interest of free information, a message from Harvard Divinity School’s Dean William A. Graham on layoffs at Harvard Divinity School:

June 24, 2009

Dear HDS colleagues,

As you all know, over the course of yesterday and today, a number of HDS staff members were notified that their positions are being eliminated, and I write now to share with you more about these difficult changes.

From the start, I had fervently hoped that we would not have to face staff reductions, and it is exceedingly hard for us all now to have to do so. I will not take the time here to repeat all the measures we have taken at HDS to address our anticipated budget shortfalls in ways that would avoid staff layoffs; I have written and talked to you collectively, and to some of you individually, about these earlier actions a number of times during the last several months. Always foremost, as we have reviewed all possibilities, have been our commitments to sustaining financial support for our students, preserving the richness and rigor of our academic programs, and maintaining a sound and well-functioning physical campus environment in support of our common endeavor.

First, I would like you all to know that decisions regarding layoffs were made only after much thoughtful deliberation and discussions involving staff, managers, department heads, and human resources about essential work that must continue and the services we need to provide to our students and faculty. The deliberation included determining whether some work could cease if priorities were adjusted and whether some work could be performed more efficiently through development of new systems or sharing of resources across departments at HDS or across the University. We also reviewed opportunities to reassign work if some existing positions were not fully utilized. Throughout this planning process, we have given careful attention to ensuring that reassignment of work does not overburden remaining employees and that new configurations of responsibilities are logical and practical for all concerned.

Second, it has also been a priority to ensure that all directly affected employees are well supported as they leave our organization. Those who have been laid off will be provided with every possible consideration during their transition. Each affected employee has been offered an enhanced severance package that includes a paid notice period of 60 days (during which it is expected that most time will be dedicated to a job search), enhanced severance payment in consideration of the tight job market, continuation of subsidized health and dental insurance, and internal and external job-search support. These benefits are aimed at helping those who have lost their jobs not only to have as much financial support as possible, but also to find new work in the shortest possible time. Layoff benefit details are outlined at the following location on HARVie: http://harvie.harvard.edu/Life_Changes/Layoff/.

Following is further information regarding the changes that have been made at HDS. Although some of you may have already been informed by the affected individuals themselves, I would like to allow some time for local departments to discuss and finalize the details of these changes—particularly regarding modifications to the job descriptions of those who remain—prior to communicating the details to the rest of our community.

Nine HDS employees have been notified that their positions are being eliminated; additionally, one employee recently chose a voluntary layoff. The departments directly affected by these layoffs are the Offices of Development and External Relations, Academic Administration, Ministry Studies, Human Resources, and Information Technology and Media Services. As a result of reorganization, three-and-a-half new positions have been created. Two of the nine affected staff members will have the option of accepting either a layoff or one of the newly created, similar positions within the same departments. If these individuals accept the new positions, and taking into consideration that one layoff was voluntary, the number of involuntary layoffs at this time will likely be seven. We anticipate needing to post the remaining two new positions, one full-time and one half-time. Across the University, new positions will be opening as a result of the voluntary early retirement incentive program and reorganizations. It is our hope that many of our staff who have been laid off will find employment at HDS or elsewhere at the University, if they choose to do so, and we will do our best to support them in this effort.

I know that the prospect, and now the implementation, of these changes have generated much concern and anxiety. I fully acknowledge and regret the discomfort of this process and I am grateful to all of you for your patience and the goodwill you have demonstrated throughout. It is hard to imagine a smaller HDS, particularly considering how hard we’ve worked to get where we are, and it is unfortunate to be losing some of our valued colleagues. However, difficult decisions such as these are critical to ensuring that HDS can continue to fulfill its mission in future years. I would like sincerely and publicly to acknowledge those of you who will soon be leaving HDS. I value all that you have contributed to our organization and our community over the years, and I know that you will continue to make positive contributions in our larger society, whether here at Harvard or elsewhere.

Within the next week, after directly affected departments have had an opportunity to discuss fully the details of changes they will be implementing, I will be in touch with all of you again to provide more information about the reconfigurations that are taking place. As part of this, the organizational charts that we maintain on the HDS intranet will be updated and posted.

If any of you have questions or concerns at any time, Kim Van Savage, director of human resources, is here to talk with you or to direct you to other sources of information or support. The staff at the Employee Assistance Program, at 877.EAP.HARV, are also available for confidential consultations. And, of course, I am ready to address any concerns. (For those staff members who are less comfortable either approaching me personally or asking questions in a public forum such as a staff meeting, the Office of Human Resources has provided a question/suggestion box on the bookshelf in the Rockefeller Hall lounge and has made it possible for questions and comments to be submitted anonymously online, via the Zoomerang survey found at Questions,Concerns&Ideas.)

The agenda of our next scheduled all-staff meeting will be modified to focus on this latest news and what it means for our community. This will be a time for us to gather, to acknowledge the pending departures of our colleagues and friends, and for you to ask about any issues you wish to have addressed. The meeting will take place at 9 am on Thursday, June 25, in the Sperry Room.

Thank you again for your dedication, your patience, and your resilience. It is important, even as we make our way through difficult times, to look ahead to the accomplishments we can achieve in the future as we work collectively to preserve HDS as an institution that provides a transformative and exceptional education and makes possible the highest quality scholarship.

Sincerely,

Bill Graham

And, a question and answer session on HDS’ layoffs with Dean Graham from the 25 June 2009 HDS staff meeting:

Questions and Answers With Dean Graham

How were decisions about layoffs made at HDS, who was involved in making decisions, and why did the process take as long as it did?

  • Within HDS, every department carefully considered current priorities, workload, and potential efficiencies through revision of processes or assignments, in consultation with HR. No specific targets were set by number or percentage of layoffs, either for HDS as a whole or by department.
  • Where our reassessment of responsibilities involved a shift in tasks from one office to another, managers in those offices have worked together to create a solution that takes into consideration the workload of staff in those offices.
  • HDS worked closely with the University’s central human resources, labor relations, and legal teams to ensure that decisions were made thoughtfully, and in a manner that is fully compliant with our legal and (union) contractual obligations.
  • This meant the process may have seemed inordinately long, but it was important to follow to help ensure fairness and rigor in our decision-making.

Why were some of the largest departments not directly affected?

  • Factors involved in layoff decisions were: ensuring continuity of mission-critical services; current workload; and recent or future opportunities for staffing reduction through attrition. Knowing that there will be more work to do in order to align budgets with projected FY11 income, all departments are continuously reviewing workload, processes, and service levels, and will continue to seek additional opportunities for efficiencies. Unfortunately, the hard work is not over.

Instead of layoffs, has any thought been given to salary reductions?

  • Harvard has already frozen FY10 salaries for faculty and non-union staff. Furloughs and temporary reductions in pay were also considered, but these options would not generate the types of significant long-term savings that would bring us back to a sustainable level of spending while still supporting our core mission. In addition, at some point in the future we would need once again to catch up to market rates for positions in order to minimize turnover and to maintain a strong workforce. Any immediate financial benefit from salary reductions would be offset by the potential future cost and loss to the organization.

What was the impact of the VERIP [Voluntary Early Retirement Incentive Program] on HDS layoffs?

  • The voluntary early retirement incentive program did not affect layoffs at HDS: the acceptance rate was far lower for HDS than for the University as a whole (20% vs. 33%), and acceptances did not occur in functions where layoffs were considered at this time.

Is this it, or will there be another round of layoffs in FY10, since the continual commentary has been that things will be worse next year? Can HDS just say “No” to more layoffs?

  • Involuntary layoffs are complete for the near term. However, given the significant financial challenges that lie ahead, it is possible there will be further layoffs at some point in the future. As we continue to adapt to our new financial reality, we will continue to do so strategically and thoughtfully, taking care to trim in ways we believe are sustainable and that take advantage of natural staff attrition to the extent possible. While this has the disadvantage of leaving us still with some uncertainty, we felt it was better at HDS to proceed cautiously, rather than moving too quickly to deeper staffing reductions.
  • All decisions about layoffs at HDS (both the number of positions eliminated and which specific positions) were made at the local level; no one at the University level or in the central administration specified that a certain number, or percentage, of staff positions had to be reduced. However, HDS, like all the other Schools and units at the University, must prepare budgets that align with the endowment payout reductions.

What is the target amount that needs to be cut from the HDS budget? From each department?

  • To accommodate the declines in endowment payout expected by FY12, we need to reduce expenses by about $6 million compared with the original budget for the current fiscal year (FY09). The total target expense reduction depends on what can be done on the income side—for example, increasing current use gifts to the HDS annual fund. The FY10 budget reflects $2.5 million of expense reductions we have already made.
  • Over the next year, we will continue planning toward aligning our budget with the endowment payout reductions. We will continue to do this strategically, as we have thus far, carefully considering the context of each department.

Who has a voice in planning for the future? What about ideas staff members may have?

  • I welcome all ideas from any members of the HDS staff—as do all the managers. We are all in this together, and some of the most creative and enduring solutions have, and will, come from those of you who best understand the work we do on a daily basis.

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