The Proper Way To Conduct Layoffs

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Layne Davlin

February 4, 2009

Business leaders today attend hours of training on corporate life. However, most of us have failed to receive proper training on how to deal with employee layoffs. I realize that this is quite an unpopular topic; however, considering today's financial climate, it must be addressed. Most employers do not want to know how to layoff employees. They do not want to consider what would happen if business takes a turn for the worst.

The unfortunate truth is that more than 89 percent of all employers will lay someone off during their careers, and not knowing how to layoff employees properly can cause huge career issues. It is imperative that employers conduct layoffs in the proper manner.

Laying off employees is emotionally draining for all people involved. The layoff process creates stress not only for the employee, but also for the employer. When making the decision to move forward with layoffs, an employer should be prepared for what follows. Layoffs create a toxic work environment, causing the remaining employees to scrutinize everything the employer does. If handled badly, an employer will have productivity and morale problems for a considerable period of time after the layoffs occur.

To be effective in the layoff process and to alleviate future issues, an employer must organize all details of the layoff as far in advance as possible. You must have severance packages, layoff letters, explanations of benefits, and all other relevant documents prepared for each affected employee. Try to help your departing employees by providing job search assistance. Offering these and other HR-related services will soften the blow and offer help to your former employees. Remember that all of your remaining employees are watching how you handle these layoffs. This will determine how your remaining staff will respond to you in the weeks and months that follow.

It is your responsibility to perform the layoffs yourself. Do not allow someone else to assume your responsibility and take the heat for your decisions. You are the boss, and you need to be accountable. Deliver the message calmly and honestly. Know what you are going to say and say it compassionately. These people are your employees and coworkers. You owe it them to be the one to deliver the news. The way you deliver this message is almost as important as what you say, so take some time and practice what you will say. Additionally, be prepared for the strong emotional reaction to the news you are about to deliver. Not everyone is going to handle this well, so you must be ready and keep your own temper in check.

Finally, allow yourself and the remaining members of your staff to react after the layoff. Conduct a meeting with your remaining staff and assure them that you intend to be honest with them and explain why the layoffs were necessary. Your remaining employees have lost their friends and coworkers to these layoffs. They will be concerned for those who have lost their jobs, and will most certainly be sad and maybe even angry with you. It is essential to remind your staff that the layoffs were strictly a business decision and not personal. You made these decisions in order to help the financial well being of the company and to preserve the jobs of the employees that remain. Keep it honest, positive, and try to keep emotions in check. 

Conducting layoffs is one of the most difficult and frustrating responsibilities of an employer. Although never an enjoyable task, if handled properly, you and your employees can move forward and work together with great success.

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