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Executive Brief: Considerations in Downsizing (Part ll)

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by Tammy Giefer, SPHR
 
Communication is key to both the employee being laid-off and the remaining employees in the organization. Communicating to an employee that he or she will no longer have a job can be a very emotional task both for the manager and the employee. The meeting between management and the employee should be brief and to the point, and the style of communication should be honest and empathetic.  

Before the meeting takes place make sure that everything is in order.  If applicable, make certain you have the severance agreement and COBRA forms ready to share with the employee and a checklist of any company property in the employee’s possession. Be certain that another member of management and/or security personnel will be available to assist you if the situation becomes volatile or overly emotional.   
 
The following considerations should be taken when conducting the lay-off meeting: 

  • Start by letting the employee know that the decision to eliminate his / her position has been made based on the needs of the business.
  • The meeting should be brief. Employees often try to bargain for their jobs; let them know that this was a carefully thought-out decision and the decision is final.
  • Be empathic! Give the employee a few minutes to digest the information he or she has just been given. A little humanity will go a long way! Keep tissues on hand, as employees may become emotional and crying may occur.
  • Convey to the employee the options for benefits and when to expect the final paycheck  
  • If offering severance and requiring a severance agreement, make sure the employee understands the content of the severance agreement and their rights under the law – he or she should be advised of their right to have an attorney review the agreement before they sign it.
  • If the employee will be let go right away, have a plan to collect any company equipment, badges, etc., and allot time to allow the employee to gather up their personal items before leaving the office.
  • If in extreme circumstances if you fear the employee may become hostile, be prepared to have security or other management on hand to escort the employee from the premises.  

The employee should not leave the room having no idea why this has happened, they should leave fully understanding that this was a carefully thought-out and difficult business decision. Remember that employees talk to one another, so it’s likely that what you communicate and how you communicate will be shared with other employees in the organization.  
 
Communication Does Not End Here...
 
Unfortunately, many organizations approach communications about downsizing to remaining staff with a hush-hush approach, choosing not to address the issue at all. The remaining staff should not have to hear about the lay-offs via the rumor mill. It is important to maintain a level of trust and integrity with remaining employees and a staff or department meeting should be scheduled as soon as possible following the lay-off. Don’t be afraid to let employees know where the company stands financially and why the lay-offs were necessary. Building trust with employees will mean the difference between employees who fear for the future of their jobs and begin to look for employment elsewhere and employees who work to help meet the goals of the organization.  
 
Dealing With The Aftermath
 
Lastly, be sure to have a plan of action in place following the downsizing. The employees who are taking on the added responsibility and workload should know exactly what to expect and what, if any, additional training they might require.  Be careful not to leave the employees alone to deal with the change, they will require extra support and follow-up during this transition period. Employees should be encouraged to ask questions and bring concerns about the position or added work to management’s attention.
 
In addition, managers and supervisors should be trained and encouraged to recognize signs of low employee morale and stress in remaining employees and learn to address the issues before they escalate. The last thing an organization wants after suffering a reduction in workforce is to have their remaining employees stressed out and overwhelmed to the point of looking for work elsewhere.  
 
Stay tuned for our follow-up article on maintaining employee morale and productivity following a downsizing. 
 
Tammy Giefer, SPHR, is the HR Manager for Client Services with Employment Enterprises, Inc.  Over the past 7 years, she has worked with small- to medium-sized businesses to manage their human resource functions and maximize their human capital investments.

 
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