Reduction in Force: Management Information

The company recognizes that a reduction in force is traumatic to both you, the manager, and the employees being affected. To minimize problems for both you and the affected employees, preparation is essential.

First, you should be familiar with the procedures involved with this reduction. The events that occur from the time a company considers the reduction in force through the actual separation are described below.

Phase I: Planning the Reduction

• Management reviews the work force and determines what function and which people must be impacted by the reduction.
• The list of employee names is reviewed by each department to ensure that the affected job classifications as well as the individuals selected are appropriate. (The need to minimize rumors and speculation of who is on the list is critical. Confidentiality must be maintained throughout the selection process)
• The list is reviewed by Human Resources to ensure consistency with all applicable polices. Any potential problems are brought back to management's attention for resolution.
• Some thought should be given to handling large groups scheduled for separation. The need to control rumors and protect the morale of those remaining is critical.

Phase II: Notifying Employees

• Managers, possibly accompanied by Human Resources staff members, will handle the separation interview. Therefore, it is essential that you understand the separation process. The formal training you receive may be supplemented by the following reading materials:
• "Managing the Separation Interview"
• "Surviving Layoff"
• "After the Dust Settles"
• "After Downsizing, How to Rebuild"
• Affected employees should be notified at the beginning of their shift. Evidence has shown this to be most effective in allowing employees to deal with the reality of the situation, while giving ample time to cope with details. In the case of large numbers of people, you may choose to gather the affected employees in a conference room or other large room. A general announcement to the affected group may then be considered. Employees should be offered outplacement services immediately following their notification.

After the time of notification you and/or your Human Resources representative should give the following information to the employee:

• Reason for reduction, and the reason specific workers are being affected.
• Date of separation.
• Turning in badge, keys, etc: Ask employee to turn in his/her badge and any keys or other company property in his/her possession to Human Resources during the notification (or as soon as possible thereafter).
• Outplacement/Counseling Services: All affected employees will be eligible to participate in company sponsored outplacement services. Human Resources support should be available throughout the outplacement process.
• Paychecks: All affected employees should receive their final paychecks, which includes severance pay and unused vacation/sick pay, on the day of separation.
• Tuition reimbursement: Employees eligible for the current semester will be reimbursed pursuant to company guidelines. Those employees should send copies of their tuition and book receipts and grade reports to the Human Resource Department, or another identified person or department.
• Clearing out desks/lockers: Ask each employee to clear out his/her desk or locker immediately after notification. Ensure that a managerial person is available to accompany the employee. If the employee would rather return after hours to do this, schedule a time during the notification interview.
• Timecard procedures: You (the manager) should write "N/A" in place of the employee's signature and write "RIF" (reduction in force) in the remarks space.

Phase III: Outplacement Services

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. Outplacement services can be provided on site at the company on the day of the layoff, or at the local One Stop Center office. The staff of the One Stop Centers can provide a variety of services including:

• Filing of Unemployment Insurance Claims
• Resume preparation assistance
• Employability skills workshops
• Individual career counseling
• Vocational assessment and interest testing
• Creative job search assistance

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.

Phase IV: Separation Details

Payroll should mail any final separation payments (for example, tuition reimbursement) to the employee's home as soon as possible. Affected employees should report any change in address so that future mailings (i.e., 1099 forms) can be mailed to the employee without delay.

Phase V: The Aftermath

• Motivating your remaining staff is important for morale and production. Read the articles contained in the Appendix, "When the Dust Settles," "After Downsizing - How to Rebuild" for recommendations for returning to a normal work environment as quickly as possible.
• There are many resources available to you and everyone affected by the layoff. You should utilize the professionals of the company's Human Resources Department to help resolve any problems or answer any questions.