Mass Layoffs
From OrgChart.net
Contents |
Overview
The unpredictable nature of the economy has caused many organizations to contemplate taking extreme measures in order to remain viable. Mass layoffs are one of such measures. Any downsizing measure that requires the layoff of a minimum of fifty employees is defined as a mass layoff. Such a reduction in workforce is clearly hard on both the impacted employees and the organization. Workforce reduction management needs to be handled well, as incompetence could very well cause the demise of the organization.
The WARN Act requires companies with 100 or more employees to provide an advance notice of 60 days to the employees prior to the layoff. Failure to plan well could result in trouble: legal, morale related, damaged reputation etc. for the organization. In addition to determining the various positions that need to be removed, the organization should streamline and standardize the criteria and processes to determine which employees need to go. It should be a multi-criteria approach, free from biases.
Use of Intelligent Software to Streamline Mass Layoffs
Organizations resort to the use of intelligent software in order to minimize chaos. This ensures that the procedure incorporates uniformity, transparency and also enables compliance with rules, company policies, laws and union agreements. Setting such a format in place mitigates the risk of lawsuits relating to discrimination or improper termination. Effective selection criteria also ensures that there is no leadership void created by wrongly firing an individual highly valued by the organization.
It is also important to work out suitable severance packages which can be offered to exiting employees on basis of their tenure, contributions etc.
Mass Layoff Best Practices
One of the most important aspects to consider during mass layoffs is the dignity, sensitivity and consideration with which the impacted employee is treated. Communication regarding possibility of a mass layoff and why it is being resorted to should be sent to all employees. The managers who need to convey the bad news should be trained to deliver the news, handle possible reactions and quell fears. The impacted employees should be given an opportunity to be heard out. The worst mistake managers can make in such cases is to consider the association with the employee over after the organizations gives them a pink slip.
Organizations are becoming increasingly aware of the ramifications of such measures and are engaging in providing outplacement services to the impacted employees. There are outplacement consultants, but there is also software that facilitates transition, which organizations can utilize to cater to this need. The outplacement aiding software is able to help the impacted employee find employment again by identifying suitable opportunities, helping prepare resumes, providing important information and developing a greater understanding of relevant areas through articles, webinars etc. This is helpful in keeping a positive attitude and looking towards the future.
Outplacement Service Providers
Outplacement service providers also have the option of providing the impacted employee with one on one support where counselors address the employee’s concerns and act as a career coach, gently steering him/ her in the right direction. Experts agree that outplacement is a solution worth considering because:
- It facilitates the transition process for the impacted employee.
- It is the right thing that an organization can do to show respect and concern towards an employee in exchange for the service rendered.
- It is helpful in protecting the organization’s brand name as it shows that they are a good corporate citizen.
- It ensures that remaining employees continue to be productive and are not felled either by guilt or by faith lost in the employer.
