How to Tell an Employee You're Laying Them Off
It's never an easy task telling someone he is no longer employed; however, there are ways to make the message easier to digest for both the employee and the human resources manager. Clear communication is a key component in the employer-employee relationship. Just because the employment relationship is ending doesn't mean rules concerning professional courtesy, interpersonal relationship skills and compassion should also end. Human resources managers have an obligation to uphold professional standards in all they do. The manner in which an HR manager informs an employee of a layoff is an opportunity to convey how much the company has appreciated the employee's contributions.
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Instructions
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Gather the information you need to explain the underlying reason for the employee's layoff. Obtain data relevant to department staffing needs and even the employee's performance that justify why this employee was selected to be part of the company's layoff. If you believe it would be helpful to disclose information about company finances and budget information to explain the layoff, be sure the information you intend to disclose isn't protected by confidentiality or privacy provisions.
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Schedule a time to meet with the employee as soon as practicable. Do not postpone the meeting or procrastinate until you feel the time is right. The right time to inform an employee that her employment status is about to change is as soon as possible. Employees need time to process the information, collect their thoughts and prepare for impending employment challenges. Conduct the employee meeting in a private office. Telling an employee that you're going to lay her off can turn into an emotional end to the working relationship, which must be handled in as delicate a manner as possible in a private conference room or office.
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Welcome the employee to your office and begin the meeting in as direct a manner as possible. Don't prolong the news by engaging in endless chatter about how much the company values the employee's contributions. Chances are the employee will sense the topic of the meeting isn't entirely positive, so it's best to move on to the subject of his layoff. Once you've told the employee that his job is being eliminated or that the company has decided to lay him off for an indefinite period, explain his options.
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Describe the process for continuing his benefits and the amount of pension or shares of company stock available to him. Explore other compensation matters such as his final paycheck, as well as vacation and sick time accruals and when he receives payment for those benefits. Explain that the compensation and benefits specialist will initiate the continuation of health care benefits under the Consolidated Omnibus Budget and Reconciliation Act (COBRA) and that his COBRA details eventually will be handled by the group health plan administrator rather than the in-house benefits specialist.
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Present the employee with a copy of her proposed severance plan. Some employees might want to negotiate the terms of the severance agreement -- if the severance plan terms and conditions are nonnegotiable, state that upfront when you present the agreement. Provide the employee with the original document and retain a copy after you explain the agreement and compensation package that accompanies the severance package. Remind the employee to seek advice from legal counsel if she feels the need to discuss the terms with someone outside the workplace. Other terms and conditions of the proposed agreement should be maintained with strict confidentiality.
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Close the meeting with a sincere invitation for the employee to contact you with questions about his layoff. Restate the company's appreciation for his service and loyalty, and remind him that employee assistance program services are available to him in the event he needs to discuss the layoff with a confidential party who understands the uncertainty that comes with being laid off.
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