How to Manage Layoffs

Layoffs and furloughs are some of the worst tasks managers have to deal with. Most will go to great lengths to cut costs before laying off employees. But it’s something inevitable, and all you can do is do it with grace and dignity. 

Here’s how you can approach layoffs carefully and delicately:

Protect Your Business

Your employees are your company’s biggest asset. Building a team takes too much of any organization’s effort, time, and energy, thus letting go is difficult. It would be painfully hard to leave your employees in an uncertain world, especially in the current global situation we’re in.

And so, when it’s time to do the inevitable, protect your business. Think of every available solution instead of layoffs. Ensure that it is your only and last resort. The following are some of the suggestions you can opt for:

  • Lower salaries
  • Cut benefits
  • Reduce work hours
  • Encourage unpaid leaves
  • Get government support if applicable

Record Conversations and Exchanges

Keeping the communication open to your employees is crucial. Treat your employees with respect, but make sure that all conversations and exchanges are recorded. This will facilitate getting information if and when you have the means to get them back on your team again.

Doing this will also provide transparency and authenticity. This will get you the detailed documentation that everything was done according to company policy and employment laws.

Send Documentation Where Appropriate 

Layoffs and terminations are rife with legal landmines. Make sure to send the proper documentation where appropriate. This will help keep the transparency going and free the company from any unwelcome liability.

The following are some of the documentation you need to prepare when laying off employees:

  • Employment termination letter
  • COBRA paperwork
  • Severance agreement
  • Item related to the severance package
  • Final paycheck
  • Outplacement benefits, if applicable

Offer Support

Since you’re practically cutting off your company’s biggest asset, offer as much support to them as you can. This will help boost morale and get as much positivity in an otherwise bleak situation. Help your employees transition with the following recommendations:

  • Separation package: give your employees a little something to help them tide over until their next engagement comes.
  • Redeployment: find companies within your area that can absorb your employees.
  • Contact other employers: reach out to employers that may have openings that they need to fill.
  • Get career transition services: if you can, employ a career transition firm that can help laid-off employees get work in the quickest time possible.
  • Consider Employment Assistance Programs: help ex-employees cope with the loss of work.

Remain Calm

Personalizing a layoff is a grim possibility. Make sure that your managers remain calm and objective throughout the process. Share information where necessary to avoid leadership mistrust and overall confusion.

Managers need to be mindful of their words when speaking to those affected by the RIF and the survivors alike. Let them know that you recognize the pain of the situation and have done every means available to minimize the impact.

Be Respectful

Protect every individual’s dignity by treating them all with respect. Speak to each of them in private instead of having them see their belongings packed or getting an email about the termination. Positions are cut, not people, but in the end, the people are the ones affected.

Deliver the sad news with compassion, knowing that this affects not only your employees but also their families. 

Conclusion

Even in the best of times, letting go of people is a challenging endeavor for most managers. Whatever your company’s circumstances are, you should always deal with layoffs with kindness and humanity.