How to Lay Off an Employee with Dignity

Treat laid-off employees with as much dignity as possible and the process will be much easier on both of you.

It can be devastating to be laid off, but it is also tough to be the messenger of the bad news. If you are a supervisor or manager who has to lay off an employee due to economic cutbacks, organizational restructuring, etc. -- in other words, for any reason that is NOT due to the employee's poor performance -- this tough task will be easier if you treat the employee with as much respect as possible.

Things You'll Need

• Your organization's termination policy
• Resource information to provide to the employee who is laid off

Instructions

1. Before telling an employee that he or she is being laid off, you must prepare, prepare, prepare. Speak to your supervisor or your human resources manager and learn exactly why the position is being eliminated so you can explain it clearly and honestly. Think carefully about the types of questions you anticipate the employee will ask you. You need to know exactly how the layoff will work and have the details covered. In other words, you should know what the employee's last day will be; have the last paycheck ready if the layoff is immediate; know whether there will be any severance pay or benefits; and be able to say whether there is any chance the position will be reinstated in the future.

2. If you don't already know, determine how employee terminations are handled in your organization. Are they handled by the direct supervisor, or by a human resources specialist? Are they done by one person alone or in pairs? Generally, it is preferable to make the notification to the employee as a pair. Ask your supervisor or human resources manager to be with you as you tell the employee that they are losing their job. It is useful to have their expertise, additional explanations, and for them to be a "witness" to the conversation.

3. Determine the exact date, time and a (private) location to announce the layoff to the employee. Set aside at least an hour.

4. Call the employee shortly before the meeting and ask him or her to meet with you. Don't tell him or her on the phone what you want to talk about -- this discussion needs to take place face-to-face. Don't sound mysterious, as it will only cause anxiety.

5. When the employee comes to meet with you, ask him or her to sit down. Without building up suspense, simply tell him or her that you have something very important to talk about. Then, say the words. Be very clear and concise. Ambiguity will cause confusion. Be calm, serious, and genuinely sympathetic. Say, "I'm truly sorry to have to tell you this, but your position is being eliminated because _______ (state the reason). As a result, we have to terminate your employment effective as of _______. I want you to know that this is not your fault."

6. Once you have made the announcement, sit quietly and wait for the employee to digest what you have said and to see how he or she reacts. You can then respond to those reactions. Don't continue to ramble on out of your own sense of nervousness.

7. Anticipate any variety of emotional reactions. Don't be afraid to ask how they're doing. Some employees may expect to be laid off. Others will be truly shocked. Some will cry. (Have tissues nearby.) Others may become anxious. Be prepared to be supportive. Others may become angry. Listen to them without becoming defensive.

8. Answer any questions the employee has, and repeat your answers as many times as necessary. Some of the questions will be practical, so your advance preparation will pay off. Have a folder handy with any paperwork that needs to be signed (such as a termination letter or a severance agreement), and be sure to include information explaining how final paychecks, sick/annual leave benefits, health insurance, pension/retirement plans, unemployment compensation, etc., will be handled. If the employee is eligible for any employee assistance program benefits related to being laid off (such as counseling), let him know how to access those benefits. Also, provide information about local government and private job-hunting resources, including resources for updating resumes.

9. Other questions will be of the "existential" variety. Remember, many employees feel connected to their jobs and careers, and a layoff will feel like a personal rejection or a loss of an important part of their identity. Be sure to reiterate that the layoff was for a reason outside of their control. Compliment the employee on their loyalty, performance, etc., when appropriate.

10. Some employers prefer that a terminated employee leave the workplace immediately. This makes the layoff doubly painful. However, if that is the policy at your organization, explain this to the employee. She may need help to pack up personal effects, including retrieving any personal information in their work computer. You will need to obtain door keys, parking passes, ID badges, etc.

11. If your organization does not have a policy that laid-off employees must leave the workplace immediately, talk with the employee to develop a plan that will be comfortable for him or her to prepare for the final day at work. Work with the employee to devise a plan to tie up loose ends of work-in-progress. You should also talk to the employee about how the news of his layoff will be shared with other co-workers.

12. Emphasize the resources that are available such as counseling, coping and managing the stress of the job loss, etc. Often companies have vendors they've contracted with to be available to their employees to discuss their feelings and to guide them on how to manage their feelings and where to go next. If your organization does not provide resources to help employees find new jobs, your advance research will help by giving the employee resources they can turn to on their own.

Tips & Warnings

• It is always useful after you have had to lay off an employee to "debrief" with your supervisor or human resources specialist. Remember, this is tough for you, too!

• Try to put yourself into the employee's shoes. How would you like someone to tell you that you're being laid off through no fault of your own? And what kinds of resources would you want to know about to help you cope and begin a new job search? These are the kinds of helpful hints you'll want at your fingertips when YOU have to be the bearer of bad news.

• Be sure you follow the policies in place at your organization.

• Be sure your methods are in accordance with labor law. If you're not sure, consult your human resources specialist, check out the Fair Labor Standards Act or other pertinent legislation, or speak to a specialist at your state department of labor. They're there to help you.

References

• Bloomberg BusinessWeek: The Right Way to Handle Layoffs

Resources

• U.S. Department of Labor