Overview

In our dynamic economy, companies continue to lay off employees, while other firms are hiring. Some companies experience downturns in business volume, and have successfully "ridden" those times out to move forward to subsequent growth and development. During these times, it is necessary for companies to develop strategies to successfully make it through the down cycle. Strategies often include the adjustment of the workforce and the elimination of employees through layoff. Other companies may face plant closure, and be faced with the layoff of their entire workforce.

Employment separations are a fact of life. Though it is something that is usually looked on as an unpleasant task, if handled well, it can be productive for both the company and the person being separated. It is important to the company, and to the affected employees, that the layoff be accomplished in such a manner as to protect the company, while providing the affected worker with specific information regarding their layoff, and other information that will assist him/her with their immediate future employment planning.

The manager conducting the separation meeting should be well prepared and have a clear vision of the objectives of the meeting. It is valuable for the manager to anticipate possible reactions from the affected employee, and have an understanding of how to deal with those reactions. The manager should not be left uncertain or probing in the face of the discharge's response. Control should be maintained and a business-like, rational tone must prevail.

In preparing for the separation meeting, the manager should have available details regarding a severance package, insurance coverage and continuation under COBRA, pension/profit sharing plan and 401(K) distributions, the method to be used for paying out any accrued vacation/sick time, and eligibility for unemployment benefits.

As a company contemplates a reduction in workforce, it is to their benefit, and the benefit of the affected worker, that they contact the local One Stop Center early in the process, and schedule the delivery of outplacement services. By working closely with the One Stop Center early in the process, and scheduling the provision of reemployment services for the worker, the manager will convey to the worker that they are valued, and be able to offer encouragement to the employee to take immediate positive steps.

In the following pages, we will take you through the process of preparing for a layoff, implementing the plan, and evaluating the results achieved so that you can continuously improve the process in the future.