In addition to the widespread anxiety the current pandemic has caused, layoffs have become inevitable for many organizations. The state of local and global economies is rapidly fluctuating- leaving many behind.
If your organization is considering making permanent layoffs, be mindful of compliance and employment laws. Treat the situation with as much compassion and understanding as possible.
Before making the final decision, determine whether you can work with the following alternatives:
By reducing work hours or days, you can keep pay rates intact and save money and jobs. Consult with your HR team to determine the individuals or teams whose modified schedule will not compromise essential tasks, processes, and goals.
Clear communication and leadership example will help you win employee support.
Be sure to convey the following:
Leaders taking pay cuts will emphasize your commitment to your goals.
If you are going for a certain percentage of reduction across the board, consider whether lower-paid employees should have smaller percentage reductions to ensure they have sufficient income to address their needs.
Furloughs may seem a less unattractive option to employees if they are guaranteed their jobs back after one or two months—even less so if you guarantee continued health insurance coverage along with other benefits.
Establish clear criteria for choosing who goes and share these with your employees. Work closely with your HR team to pick the key points to communicate to ensure transparency in your firm’s downsizing strategy.
Be sure that your choices are backed up by thorough consideration that goes beyond pay and immediate savings.
In particular, see to it that you keep the right people. For example,
Give as much notice as possible. Each individual should get a private meeting, with their manager and an HR representative present, and the details should be provided to them in writing.
If face-to-face meetings are impossible, an alternative is to have team managers inform their team members together or individually over the phone.
Whatever options are available to you, be sure to show empathy, respect, and kindness throughout the process.
The Harvard Business Review has identified 7 critical questions that you should be ready to address:
You can offer people outplacement services, whether through outsourced services or in-house. This includes resume and interview coaching, letters of recommendation, and personal referrals to prospective employers.
Do you need expert help in navigating the difficult layoff process?
Contact Payroll Systems. We pair human skills and empathy with the latest technology to take on our clients’ HR and payroll processes.
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This article provides general information and shouldn’t be construed as legal or HR advice. Since employment laws may change over time and can vary by location and industry, please consult a lawyer or HR expert for advice specific to your business. You can also contact Payroll Systems to inquire about our HR support services.