How to Handle Company Layoffs

When times are tough, layoffs is the dreaded term heard all too often around the office. Knowing how to handle company layoffs can be a difficult undertaking, but as a manager or VP, being able to handle company layoffs is a skill often taken for granted.
Who should you lay off? How should you lay off employees? When should you lay off your workers? These are all questions that need to be addressed in order to determine how to handle company or corporate layoffs with the most success.

Difficulty: Challenging

Instructions

1. Think before you layoff - The first step to knowing how to handle company lay offs is to determine if layoffs are really necessary. In the short term, laying off employees might seem like the way to go, but consider long term effects. Will your company or corporation be able to handle the work load without the additional employees? Do the employees you are laying off have valuable skills that you will have to outsource for a much higher fee than you would be paying if kept the workers on?

2. Decide who to lay off carefully - Don't decide to keep someone on just because they have been with the company a long time or because they have a manager position. On the other hand, don't decide to lay someone off because they are "just a secretary". When handling company layoffs, take into account the employee's productivity, position, relative pay, important projects, key skills and more.

3. Decide when to layoff carefully - To keep company moral high, do not handle lay offs right before a holiday or important business transaction.

4. Do the laying off yourself - Even if you don't know feel confident in how to handle corporate layoffs, don't hand over the task to someone else. If you are the manager or VP, handle the layoffs for your department yourself.

5. Help the laid off employee through the process - Give advance notice, give a pay bonus in the last pay check, give career advice and encouragement. Be caring and considerate when terminating employees.

6. Make sure to not be left hanging after laid off workers leave - If there is key knowledge you need from laid off employees, try to get it from them before they leave. If possible, try to work out a consultant arrangement with laid off workers so they can still get paid to help you when you need it.

7. Help remaining co-workers mentally handle the layoffs - Give remaining co-workers an outlet to talk about how they feel about the layoffs. Give them a chance to talk with laid off employees to say their good byes. Hold a meeting with remaining co workers to discuss their feelings and get things out in the open.

8. Help remaining co-workers be productive after layoffs - Make sure to give remaining co-workers extra training if they are taking on new tasks. Make sure to give them recognition and encouragement if they will now be expected to work overtime.

9. Stay calm, strong and focussed throughout the layoff process - During the layoff process, your remaining employees still need you to be a strong manager and still need your guidance. Don't let the layoff process force your employees to loose efficiency because you are not dealing with day to day issues.

Tips & Warnings

• Remember: The key in how to handle corporate and company lay offs is knowing how to keep the company running smoothly throughout the layoff process.