How to Layoff Employees
Whether you are a small business or a large corporation, laying off employees is a necessary reality in this difficult economic recession. Laying off employees can be one of the most difficult tasks for a manager or VP and knowing how to layoff employees without seeming like a heartless tyrant can seem like an impossible task.
The key to knowing how to lay off employees is to remember that each worker you lay off has feelings, monetary needs and a sense of dignity.
Follow the steps below to find out the best steps take when you need to lay off an employee.
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Instructions
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Lay off employees with compassion - the first rule in how to layoff employees is to terminate their employment with feeling. Remembering to consider the employee's feelings even if you have to terminate their employment under harsh circumstances can make the lay off process significantly easier for the employee. Remember that a job is an important aspect of a person's image of themselves. Don't destroy their self image by forgetting to consider just how important your job might be to them.
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Lay off legally - refer to any contracts you may have with employees, read up on national and state employment laws and talk to your lawyer to make sure you are laying off employees legally.
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Give advance warning - if you see company layoffs or corporate layoffs are eminent, give subtle hints in the office so that when you need to deliver the bad news, the employee is already mentally prepared.
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Give plenty of notice - Advance notice is a key step in best lay off practice. Don't just tell an employee he has 15 minutes to vacate the office unless there are major security issues involved. Give him/her at least a few weeks to clear our their desks, say good bye to fellow co workers, and start looking for employment.
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Be honest but not hurtful when telling your worker the bad news - Don't make out like it is the worker's fault you are laying him/her off just because it clears you of your guilty feelings. On the other hand, if the reason is because the worker did not live up to expectations, do not go overboard in explaining how horrible the employee was.
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Give a good bye gift - Give the laid off employee a little good bye present or, if the company is very close, even consider throwing a good bye party to show how much you will really miss them. (Each company is different, so consider whether this would be appropriate in your specific company.)
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Give extra compensation - If at all possible, compensate the employee generously when you need to perform a company or corporate layoff. Pay workers a little bit extra in their last pay check to help them out with the beginning difficulties of their unemployment.
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Give advice for finding a new job - Sit down with the laid off employee and discuss their job options. Tell them what you think their strong points are, how they have gained from the job and types of positions they should look for. If possible, recommend to them several companies that might be looking for employees with their qualifications.
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Write an honest but complimentary recommendation letter - Give the laid off employee a detailed letter mentioning how much you appreciated them. Include details about projects they worked on and how much they contributed. Make the laid off worker feel special and important.
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Consider hiring a career counselor to counsel recently laid off employees - if you are laying off several employees, then hiring a career counselor to give them advice could be a good way to show you care.
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Give a good bye gift - Give the laid off employee a little good bye present or, if your company is very warm and close-nit, you may even consider throwing a good bye party to show how much you will really miss them. (Each company is different, so consider whether this would be appropriate in your specific company.)
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Tips & Warnings
Remember - the most important thing is to remain compassionate throughout the layoff process
If you will need to lay off many employees, consider taking a crash course in management which includes a detailed lecture on how to lay off employees
Make sure to lay off employees legally. Contact your lawyer if you are not sure.
