During a recession, like the world is currently experiencing, layoffs are common. And not just for the big 'boys'. Small businesses also have to contend with reduced revenues and therefore laying staff off is a possibility. And there could be other reasons for laying staff off, including
- Poor performance, including lack of punctuality, absenteeism, or failure to produce desired results
- Resistance to change
- Negative attitude
- Insubordination
- Not conforming to company values
- Questionable character or ethical lapses
- Criminal acts
Where the reason is the economy, decisions about whom to fire and why, have to be made. Here are some criteria to help you decide:
- Higher salaried employees
- Newly-hired employees
- The lower 10% on the work performance scale
- Employees nearing retirement and/or older employees (although this may be perceived as age discrimination)
Whatever the reason, sending staff home is classified as one of the most unpleasant tasks for any business owner.
According to www.investopedia.com, many successful CEOs, human resources leaders and senior managers advise that you should be honest, compassionate and quick. This is referred to as the 'three be rule'.
Be honest: Tell the employee why he or she is being laid off, even if it's for poor performance. You're not doing the employee or yourself any favours by concealing the reason. You may cushion the poor performance assessment in a variety of ways, but the truth must be told. For any layoffs due to poor performance, a recent record of poor performance reviews will support your decision and justify it to the employee. It may also be used as evidence if a wrongful dismissal suit is filed against you. Many employers who want to lay staff off for poor performance have difficulty justifying it because they do not have a consistent performance appraisal process in place.
Be compassionate: Show the terminated employee some compassion and understanding. You could do this by providing outplacement services or job counselling to help cushion the blow. You could also affirm previous accomplishments.
Be quick: A quick, surgical dismissal, while keeping the above recommendations in mind, is the most humane way to handle a layoff. You may want the employee to clean out his or her desk that day and it may be a good idea to have security escort the employee to the door. Too many terminated employees have taken out their sense of injustice or lust for revenge by sabotaging their computers or attempting to hurt their managers and colleagues. Being escorted to the door can be a humiliating experience for the terminated worker but it can prevent destructive expressions of rage. Dismissing an employee on a Friday afternoon is also an effective means of allowing the terminated worker an entire weekend to recover from the shock of dismissal.
What Not to Do
Do not express anger, too much disappointment, or threaten to imperil the fired employee's chances. Depending on circumstances, you may want to tell terminated employees that they might work as outside consultants, as part-time employees without benefits, or that they may be hired back at a later date, when economic and financial conditions warrant it. That said, you are not encouraged to make promises of any kind, or to make statements that can be interpreted as promises.
Read more: http://www.investopedia.com/articles/pf/09/lay-off-staff.asp#ixzz1Twd9Wz7u
