30
Apr

Tips for handling layoffs

The headlines are grim these days when it comes to companies announcing job losses. And it’s probably going to get worse. A recent survey found that as many as half of American companies are considering laying off employees in the next three months. The survey of 250 companies of varying sizes conducted by Challenger and Gray, also found that 37% of companies have already instituted hiring freezes. The Federal Reserve is estimating that ultimately 47 million Americans could lose their jobs.

While business leaders have little control over the global economy, they have a lot to say when it comes to handling layoffs and furloughs in their organizations. It is imperative that downsizing is handled in a manner that demonstrates respect for employees, and also gives employees the best possible chance to gain future employment.

How a company is handling layoffs impacts its reputation

“How companies handle this incredibly difficult time will determine how they are viewed by current and former employees for years to come,” said Grant Thompson, President of Thompson Consulting Group. “If employers are seen as heartless during layoffs, that will become the organization’s brand going forward.”

According to Thompson, organizations should consider the following when conducting layoffs.

• Communicate with compassion: Many of these employees have probably worked for your organization for years and they deserve to be thanked and treated with the utmost respect during a layoff.
• Provide severance: Obviously, the amount and type of severance that can be provided will depend on each organization’s economic situation. However, whenever possible, companies should offer some form of severance. Packages might include: salary continuation, vacation pay, continued employer paid COBRA premiums, etc.
• Offer outplacement services: By providing third-party assistance with skills like resume writing, interviewing and job searching, the company demonstrates a desire to help laid off employees land on their feet.

“From an ethical and moral standpoint, helping your employees as much as possible is obviously the right thing to do during a layoff,” said Thompson. “However, it is also smart from a business standpoint. Economic conditions will change and you may want to hire these people back some day. How you treat them in this difficult time will determine if they have any interest in returning.”