Handling the Layoffs

When layoffs and downsizing hit, two groups are affected. Those who lose their jobs, and those who are nervous, but still employed. Each needs to be handled with care.

"We have found that successful downsizings occur only when the management team has anticipated the changes they will go through, and has put in place two solid plans: one for assisting the employees who must leave; the other for assessing and maximizing the talents of those who will carry on," says Herbert M. Greenberg, Ph.D., president and CEO of Caliper Human Strategies.

Handling the To-Be-Laid Off

No one relishes telling people they're about to lose their livelihood. Empathy plays a role. Try putting yourself in the employee's position and decide how you would like to be told. Maintaining an air of respect and concern matters.

Once your organization has determined that it must downsize, familiarize yourself with your organization's termination policies and relevant government rules and regulations. (We'll talk more about the legal aspect of terminations in the next issue.) Then, begin preparing for the termination meetings you'll have with the affected personnel.

Realize that the employees will have many questions, and have your answers ready. The North Texas Women's Business Development Center suggests that you specifically know the answers to the following:

When is my last day?
Will I receive severance pay? How much?
Will I receive bonuses that I was eligible for?
When will I receive my last paycheck?
Will I be paid for accumulated sick leave or vacation time not taken?
Am I eligible for unemployment insurance?
Will you or the company provide employment references? What will you say if you are asked to provide a reference?
What will my co-workers and clients be told about my termination?
Will my medical and insurance benefits continue?
What happens to my pension, profit sharing, or saving plans?
Can I continue to use my office or work area to look for a job?
Can I use other employees, my PC, etc. to prepare my resume?

Choose to be brave and meet with each affected employee personally. During the meeting, keep the discussion focused on the needs of the business, not the employee’s performance. Allen And Associates, a firm offering outplacement services suggests you:

Do

Ensure the individual is seated.
Get to the point quickly and explain the actions taken and the business reasons.
Listen to the employee and wait for a response.
Use your prepared notes and restate messaging as needed.
Be prepared for questions about benefits, outplacement services, and provide the written materials within the employee’s termination package.
Consider subsidized outplacement, or include information about career transition services in the employee’s termination package.

Don't

Don’t threaten, argue, make promises or use platitudes.
Don’t engage in small talk or use humor in this situation.
Don’t discuss any other employees.
Don’t try to minimize the situation.
Subsidized Outplacement

Outplacement helps companies smooth the transition of its former employees and minimizes the potential negative re-percussions.

Adding outplacement services to a termination package demonstrates the company’s commitment to the departing employee. Not only are pay and benefits being continued for a period of time, assistance is being provided to help the individual secure another position as quickly as possible. In the event of litigation, courts generally view the inclusion of outplacement services very favorably.

Maintaining the Remaining Staff

In any organization that has downsized, those who remain tend to get nervous. Will their job be next? Will salaries be cut or new projects axed?

A recent study by Lee Hecht Harrison, an outplacement and career services firm in New Jersey, found that "if an organization doesn't anticipate and plan to address the immediate loss of morale, trust in management and ability to cope with stress that occur in the wake of a downsizing, those negative feelings will fester and hinder employees from moving forward."

To minimize the negative effects of a lay off on those who remain, make sure that managers and executives are available to answer employees' questions - and that they are capable of leading forward in times of change. Suggest departmental and interdepartmental meetings to discuss goals and visions and gather input on achieving them together.

"In the short and long run," says Greenberg, "the management team needs to be perceived as the calm in the center of the storm, confidently explaining what has happened, reassuring those who remain that the company is on the right track, letting them know how they fit into the new plans, reminding them that their contributions are still extremely important, and channeling understandably mixed emotions into positive actions."

JENNIFER HICKS / E-cruiter.com