Layoffs happen in the business world.There are ways to make the process less painful for both parties.A percentage of a company's workforce can be laid off if the company isn't doing well.It's important to understand how to perform an effective layoff that is both legal and compassionate.
Step 1: Do you need to lay off anyone?
Make sure the people who remain are able to cover the work of those who are being laid off.Layoffs are usually about the company performing poorly and need to let part of the workforce go.Employees who are laid off will be able to claim unemployment benefits.Firings are usually about the poor performance of an employee.What will the downsizing do?Are people changing offices or moving to a smaller space?You don't want to regret losing key people, so think carefully about layoffs.
Step 2: You should meet with your lawyer.
You need to know how to lay off people.You should be aware of your rights as an employer.You will need to be aware of your employees rights and responsibilities when it comes to collecting unemployment benefits.
Step 3: Talk to your staff.
Chances are you will be laying off people because your business is not doing well.Before you do layoffs, talk to your staff about the health of your business.They might have some good ideas about how to turn it around.It is possible that you don't need to lay off people.At least your staff will be aware that this is part of a larger problem and not due to their performance if you do end up doing layoffs.The business has been dropping for the last two quarters.Even though I don't want to do it, I'm considering layoffs.If we don't make changes in the staff, we might have to file for bankruptcy.I don't want to lay anyone off, but I think it's necessary."I want to hear your suggestions.I will have to lay people off if we don't make changes.
Step 4: It's a good idea to plan the timing of the announcement.
Business experts suggest Tuesday morning.It is early in the week that you will be able to control the office response.People can discuss it and think about it during work, rather than being upset by it alone.It is a good idea to avoid Fridays at the end of work and the first thing Monday morning.Don't make announcements before holiday weekends for layoffs.
Step 5: Before you speak to the employee, practice what you say.
Try to think of a compassionate way to explain the situation.Imagine if you will, possible responses to being laid off and try to find good answers.Be respectful and honest.Prepare a script to follow and memorize the points you want to make.
Step 6: The layoff should be done as soon as possible.
You should plan the time and place for your meetings with employees once you know it is unavoidable.It is better for everyone to get over it.
Step 7: You have to make an appointment to do the layoff in person.
You have to tell the employees that they are being laid off.You can have a conversation, listen to each other, and try to find ways that you can help the employee move forward.I am so sorry, but I have to let you go.You have been a great employee, but we are going to have to lay you off because of budget problems.We can only operate with a skeleton staff, so we are going to eliminate your position.You have worked so hard for us, and I have seen how much you have grown.Wherever you find your next job, it's going to be very lucky.
Step 8: Prepare for strong emotions.
You need to empathise with your employees, who will be upset by the news.They have done a lot of work for you, so make sure to tell us how much you appreciate it.The employee can come and clean out his or her desk when other employees are not present.If they want a chance to say goodbye to their coworkers, figure out a time.
Step 9: Inform the employee that you will give a good reference.
Some companies are able to connect the employee with career advising and placement assistance, but not all.Refer the employee to the Human Resources department if they have further questions about filing for unemployment or finding a new position.
Step 10: They should detail their package.
Different employees might be entitled to different amounts and benefits based on their contracts.You can be sure of the details if youFamiliarize yourself with each contract.To make sure the employee understands the package, go over it with him or her.Give them time to think about what you are asking them to do.They have to sign a waiver if you give them a severance package because they will not come back to the company at a later date and demand more money.
Step 11: Stay in touch with your attorney.
As you conduct the layoffs, you might want your lawyer with you.Both federal and state law protects workers.Determine if your business and layoff plan fall under the WARN Act or the Older Workers' Benefit Protection Act at the websites cited below.Make sure you don't give your employees cause to file a lawsuit against you.Discrimination is one of the main causes of laid off employees.
Step 12: You should be open about the changes.
Everyone will be talking about layoffs.Give employees a few days to deal with it and then ask them to stop talking.We need time to think about the changes.That is fine.We will be ready to move forward when we get back on Monday.I am sad about the layoffs.Discuss them with your coworkers over the weekend.We will have a meeting on Monday to discuss how our company is changing and how you are a part of that.We can talk about them with each other today and tomorrow.I am happy to answer any questions you may have.
Step 13: You should communicate with your employees.
Email or call a meeting to discuss what the company will be doing in the future.Thank them all and ask for their help.Please let me know how you think we should deal with the changes.I would like to hold an all-company meeting on Tuesday afternoon.I want to hear from anyone who has questions or concerns so that we can deal with them publicly.Let me know by email, message, or call.Management doesn't know what a company and its clients really need.
Step 14: Put out a press release.
Don't be dishonest with your public.Let them know how your company is going to change.