How to handle layoffs

This one is actually for the companies that are undertaking layoff’s due to financial reasons, resulting from loss in business or inaccurate forecasting or changing priorities.

1.      Don’t behave like a victim, as you are not the victim here; the employee is. Hence, it is vital to conduct your affairs with dignity and grace.
2.      While drawing the list of people, please ensure you follow an objective and consistent list. If you are using tenure as a basis, do that for everyone; if it’s compensation, then the same; if it’s the skill set, then again, the same for everyone. Whatever you do to draw out the list, ensure that the process and measurement are the same. This will support you when it comes to “fairness”.
3.      Ensure that you give employees adequate notice. I have seen some cases of immediate terminations with notice pay – what is the hurry? You can send them on garden leave while the notice period is paid, and they serve this time at home. If you feel they will spread negativity, disable their email access and limit access to the office. A tenure continuity supports their efforts while seeking alternate options.
4.  Talk with each member (preferably face to face and in an informal setting) and explain why their name was selected for the layoff. Please give them a dignified exit so they remember you. An employee who leaves hating the company does more damage than good.
5.      Offer them all the support possible. They may need the laptop for a few months, so give it. You have a list of placement consultants – share their details. If you know your competitors are hiring, share the list of names with them- basically, support them with employment. You may not be able to close many, but the intent matters.
6.      Extend their medical and other insurance for six months or until the end of your contract with the insurer, or pay for their conversion to retain.
7.      Provide them with solid references and give them a warm send-off.

and more…

The primary intent is to support your teams and provide the personal touch. Treat them well, even if you don’t plan to hire them again.