Are Layoffs on Your Mind? Here is Some Friendly Advice

At a time when jobless rates are soaring and layoffs are on everyone’s mind there is a right way and a wrong way to do the ugly deed. Today’s business owner may be facing a situation where expenses are growing quicker than their profitability and revenue is declining. This volatile situation forces many to at least consider layoffs.

If you have not decided who is going to get fired then consider the following: What departments require cuts? Who can you live without? Who is vital to the organization? Also, look at the possibility of combining functions and roles. Here is a suggestion, do not combine reception with HR! Many companies may look at the fairness method of making cuts (i.e. seniority) This is wrong! Using the fair and balanced method will strangle the future of your company. Carefully evaluate those ewho have great relationships with your customers or who are strong producers in the respective departments, not just sales.

Okay, you have decided now how do you go and break the bad news? First and foremost, do it in person! There are many examples of companies using e-mail and other tech tools to do this and the results have been poor. It is a sensitive time and you need to show people respect. Give people to leave with dignity. I believe the way a company fires their staff shows how they really feel about their people.

Give a severance package. No, this is not the law, but isn’t it the right thing to do? It is acceptable to ask got a release to be signed when severance is offered, but at least offer. Again, do it in person and make the notification date the last day worked. The fact is allowing someone to work a few weeks after notification is counter productive and may increase tension and bitterness amongst your existing team.

Eliminate the perp walk!We all know what that is. When an employee leaves and the manager or security stands over their desk waiting on them to clean it out and then the fired team member is escorted out of the building, stop doing it now. Show your existing staff and the terminated person you still have trust and integrity. You trusted them while they worked there, trust them while they gather their belongings. Obviously, if there is a safety concern, then other steps may need to be taken to ensure the safety of everyone.

Lastly, be open and honest about what happens next. Communicate about benefits, COBRA and final pay. If a release is offered with severance explain to them the pros and cons of signing and what happens if they do not sign. Encourage them to speak to their attorney regarding a release.

Allowing people to leave with dignity and respect protects the team members who are left behind and prepares your company for the future when you may be hiring those same people back, or interacting with them as your next customer.

If you or someone you know may have questions regarding reducing your workforce, please drop us an e-mail at:

firstplacerightchoice@1stplacemployer.com

and a trusted advisor will answer your inquiry within 24 hours.