2. CATHIE'S CORNER:
GOOD COMMUNICATION IS KEY TO DELIVERING THE BAD NEWS OF A LAYOFF
It seems to me that just about everyone I know either is contemplating having to lay off employees, has just laid off employees, or even was laid off personally. Having been on both sides of that particular fence, I've learned that the most important word when it comes to layoffs is communication.
A newly laid-off employee has a number of concerns. Is the layoff permanent or temporary? What happens to my health insurance? My 401k? My unused vacation? Will I be able to collect unemployment?
A former employer of mine had a method for handling layoffs that I still think is excellent. We had packages made up ahead of time for each affected employee that included a letter explaining the reason for the layoff and assuring the employee that it was not due to any dissatisfaction with their work; COBRA information; information on the 401k, if applicable; information on how to apply for unemployment (mandatory in my state); any applicable ADEA releases and information; information about outplacement resources; and an explanation of their final check (which included unused vacation as required by our state law). These packets were specific to the individual, not generic. The packets were delivered ahead of time to the affected employees' managers. In the event that the immediate supervisor was also being let go, I took care of the lower-level employees while the supervisors were given the news by their manager.
All employees who were affected were given the news at the same pre-arranged time to prevent rumors and to keep nervous employees from wondering, "Am I next?" They were given their individualized packets of information, plus time to ask questions and to meet with outplacement counselors. We did take the precaution of disconnecting the computer access of the employees being let go, but despite a company policy of not allowing discharged employees free access to the premises, we made an exception in layoff situations and granted them time to collect their personal possessions and say good-bye to co-workers.
When all discharged employees had left the premises, we then held a company meeting of all retained employees, including employees from field branches by video conference. We explained the purpose behind the layoffs, assured those retained that no additional layoffs were intended, gave them time to ask questions, and did as much as possible to allay any fears they may still have had.
In a more recent layoff in which I was involved — one that was intended to be temporary rather than permanent and which came about very suddenly due to factors beyond the owner's control — employees were called at home and told not to report until further notice. As you can imagine, this was a bit more nerve-wracking than knowing ahead of time what to expect. However, each employee received periodic calls from a member of management keeping them up-to-date on the progress of the situation and, when it was clear that it would be needed at least for the short-term, an explanation of how to apply for unemployment and where to pick up final pay and benefits information.
The point, of course, is that nothing is more frightening than not knowing the status of your job, your benefits, and your ability to feed your family and pay your bills. The more information the employer is able to provide, the better. Even "There's no severance and this is the last money you'll see until your UI starts up" is better than not knowing.
So if you see layoffs in your future, try to keep your discharged employees in the loop as to what to expect. In the long run, it's easier on both you and them.
Catherine Bannon is an HR consultant in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting practice. |