Tips for Layoff’s Associated with Downsizing

At Global Resources, we help business owners navigate through the challenges of running a business. Many business owners relay that one of the most difficult tasks is laying-off employees due to company downsizing. This is an especially tough situation because these could be loyal and productive employees who have done nothing wrong; there may be no performance or behavior issues – they are being let go to reduce the company’s overall costs.

You might mean well in how you approach a downsizing situation with your employees, but if you don’t think it through and carefully plan out your process, things could go very wrong

  1. Be compassionate. When you must layoff an employee, keep in mind that you will be dramatically changing the person’s life and that the event could be highly emotional. They will have real concerns, such as paying their mortgage, feeding their family and finding a new job. Never lose sight of this and make sure compassion and empathy are at the top of your list of actions.
  2. Treat the employee with respect. Many companies follow one termination process, no matter the reason for the employee’s termination. This often includes collecting all company property from the employee, having him or her gather their personal belongings from their office and then escorting them out the door. While this process may be necessary in certain circumstances, it doesn’t fit all scenarios. Employers should think carefully about how employees are treated during the termination process and how the message is delivered.
  3. Be honest. When speaking with the employee, explain the real reasons for the changes in the organization. Let the person know that the layoff doesn’t reflect your impression of them or their reputation.
  4. Consider the messaging. Don’t become so focused on the termination process and paperwork that you fail to think through the communications you’ll need to make in connection with the termination – to the impacted employee(s), the remaining workforce and even externally.
  5. Discuss their progression. Some employees may feel emotionally paralyzed when given layoff news, wondering how they will ever be able to move forward. If the employer provides access to outplacement or job assistance programs, discuss these with the employee to help them move past this situation. Your help to the employee might also be more informal.

To learn more about us and / or to schedule your complimentary appointment with the business experts at Global Resources LLC, call us at 855-338-0266.