How to handle layoffs

23 Oct

Layoffs can dramatically affect morale.

Downsizing a company is unfortunate but sometimes necessary. Morale can be especially difficult to manage at a time when no one knows whose jobs will remain after the dust settles. According to legal advice website Nolo, some companies don't even tell their employees that layoffs will happen. The problem with that is sometimes they find out anyway, and if they don't hear it from the employers, it might make it even scarier. Additionally, some companies practice in the spirit of open communication, so they want their employees to know what's going to happen.

How to explain the situation
To avoid panic, it would be best for the employee management system team to follow some simple precautions, Nolo cited the Worker Adjustment and Retraining Notification Act, which requires that major companies notify workers of mass layoffs at least 60 days in advance. Additionally, it would help if the CEO and other major members of the C-suite get involved in the situation. Employees might otherwise feel jilted otherwise, since layoffs are such a big decision.

Keeping order in the face of a looming mass layoff
By keeping things impersonal, Human Resources IQ reported, companies can avoid at least some of the drama associated with bringing people into a room and telling them they won't be needed anymore. It will naturally and unavoidably be a painful process with many employees wondering how exactly one person was spared while another wasn't, and recognizing the impact will help to make people feel that the company is being responsible and sensitive to the feelings of everyone.

Additionally, offering severance support to those who are leaving will also make a positive impact on the people who are staying. They will see the company cares about what it's doing – that it doesn't treat its employees as replaceable entities but as important people with mortgage payments and other challenges.

Mustering the remaining staff to make them feel better
Those who will stay behind to continue working will likely be frazzled by the number of people who have left – many of them friends and all of them colleagues who once worked side-by-side with the people who remained. The best thing to do is to think of the people who are staying as new recruits, and bring them back with reinforced attention and support. According to Human Resources IQ, it may be the time to ask employees what they think the company should do for the future, now that the business has embarked on this new chapter.

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