How to Lay Off an Employee With Compassion
Telling an employee her job is being eliminated is one of the tasks human resources staff members wish they could avoid at all cost. The decision to lay off an employee is a difficult one, and it is even more difficult to explain. Business conditions sometimes leave the employer with no other option but to conduct layoffs, and whenever possible many companies consider alternatives to letting an employee go. However, providing the employee with information, resources and guidance makes the process somewhat easier.
- Difficulty:
- Challenging
Instructions
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1
Schedule a private conference with the employee to discuss his employment status. Double-check your decision to ensure there isn't a way to save the employee's job, such as a furlough or reducing his hours. Gather the paperwork you referred to in making the decision if you are at liberty to share company information with the employee. Conduct the meeting on a Friday afternoon or as close as possible to the end of the employee's workweek.
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2
State briefly how the company values her contributions and work, but don't spend too much time delaying the news. Employees usually can sense when bad news is coming; therefore, don't prolong the official notice. Explain that business conditions necessitate the layoff and express regret for having to make the decision.
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3
Tell the employee that you will provide him with any type of advice, guidance or assistance he requires. Discuss options regarding continuation of benefits, retirement savings withdrawal or rollover, final paycheck and payment for accrued vacation and sick leave. If the employee is entitled to a severance package, describe the terms of the agreement and the amount he will receive.
Be prepared to negotiate the terms or amount of the severance agreement -- employees who are being laid off may attempt to negotiate to protect themselves from the hardship of unemployment. If you have the authority and the company can afford it, entertain the employee's counter to the amount you offer. Indicate the day on which you will have a formal agreement ready for his review.
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Provide contact information for your company's employee assistance program if the employee becomes emotional about the layoff. Explain that she can visit with a counselor who can advise her on issues such as budgeting and career counseling. If your group health plan doesn't include an employee assistance program, refer her to a career counselor at the company's expense.
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Give her a list of items for follow-up, such as applying for unemployment benefits and a list of training options to increase her opportunities for finding suitable employment. If the layoff is for specific positions, indicate if there will be openings for which she may apply in the future. Indicate that the jobs may require different skill sets, training or pay a lower salary.
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Reiterate the company's position on having to let employees go, offer to provide a letter of recommendation and remind the employee about meeting with the compensation and benefits specialist about COBRA and payroll issues. Thank the employee for his time and wish him well in future endeavors.
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Tips & Warnings
The U.S. Department of Labor's Worker Adjustment and Retraining Notification (WARN) regulations don't apply for one employee's layoff. However, if your company does offer a severance package, consult the U.S. Equal Employment Opportunity Commission regulations concerning severance agreements for individuals laid off and for workers over 40 years of age.
