Layoffs are generally a last resort when a company is faced with a difficult financial situation.  However, if excellent planning and communication practices are employed, the damage to the company and its workers can be minimized.
 
The following eight suggestions will help you plan for and execute the layoff while maintaining the dignity of your employees.

1. Look at the whole picture.  Don't use the layoff solely to cut costs.  Losing valuable talent will only make the situation worse.  Downsizing can have a devastating impact on innovation when skills and contacts developed over a period of time are wiped out in a moment. For example, eliminating a critical sales position may save you big bucks in salary and benefits, but how many sales might be lost with an unfilled position.  And who's to say your competitor won't be happy to snatch up that person.  Be sure you have a clear vision of what you hope to accomplish, and what the company should look like after restructuring.
2. Make it a one time thing.  Eliminate all of the unnecessary positions at once.  On the other hand, determine whether the company can handle the workload with the reduced staff. Don't expect the same amount of work from fewer employees.  Now is the time to implement new technology to eliminate mundane work.  What positions might better be outsourced?  
3. Use selective methods. Avoid laying off by seniority unless you have a written policy requiring it.  Otherwise, you will lose all of your newer employees who hold the keys to many of the innovative technological processes companies need for the future. An employee of one year may have skills more valuable than one of 20 years. Keep the highly skilled top performers and cross train if necessary.
4. Offer a severance package. It reduces the risk of employee litigation and provides a cushion for departing employees.
5. Provide outplacement services.  People who lose their jobs are worried about how they are going to survive financially.  What they fail to realize is the emotional impact it will have on them.  Imagine the worker who has been in the same position for the past 20 years and has never looked for another job.  That employee will be challenged to maneuver through the social websites and networking that are critical to the job seekers in today's high tech world. Again, employees who have the benefit of outplacement are more focused on the future and less on the past, reducing the likelihood of litigation. 

• Separation
  • Provide support and coaching outline of services discussed with the exiting employee on the day of separation.
• Coaching Forward
  • Provide outplacement services and support; discussing career interests; customized answers with moving forward plan.
  • Customized resume assistance to gain competitive advantage.
    Interview tips.  Learn where to look for employment - search engine optimization, networking, etc.

Call 336-292-1911 or e-mail us to discuss how we can help your company through lay-offs and downsizing.