Make a tough situation easier
with these layoff tips.

It’s never easy to let a valued employee, but the following layoff tips will help make it a little easier for everyone involved.

Because in today’s tough economic times, many small businesses may find themselves in the unfortunate position of laying off workers as a cost-cutting measure.

No matter what the circumstances, it’s never easy. And there’s a big difference between firing an employee who is underperforming and laying off a valued member of your company because of tough times. (Especially in tough times.) The approach to a layoff is much, much different than that of a firing, and can mean the difference between setting your company up for future success, and setting it up for future problems.

To help guide you through these choppy waters, and to help you make it through a difficult situation with grace and integrity, here are some layoff tips and advice that should make the unpleasant task a little less so.

Preparation
Before you do anything, it’s a good idea to consult your attorney for layoff tips, advice and recommendations, and to make sure you’re in compliance with any governmental and union policies to avoid any potential legal action.

Next comes the sad task of deciding who is going to be laid off. Whether you’re laying off one, 10, or 110 employees, you need to establish a set of criteria by which to navigate. You need to avoid any discriminatory system (such as age, race, or creed) that can land you in legal trouble, and stick to neutral criteria for staff reduction. It's a good idea to get some professional advice with establishing these criteria from an attorney and/or HR professional.

Go over your personnel files to make sure all documentation, memos, minutes, and performance reviews are up to date. Go over your personnel manual and make sure you’re familiar with your established procedures for layoff. You also need to decide what benefits you are willing (or obligated) to give the employees you are laying off, such as insurance or a severance. You also need to decide if the layoff will be immediate, or if you will give them a transition time.

Informing the employee(s).
One of the most important layoff tips is how to handle the actual laying off of the employee. This is the hardest part. No one wants to deliver bad news, but it’s important to lend as much dignity to the situation as possible. So if you can, meet with each employee individually and let him know how sincerely you regret having to let him go, but that the circumstances are unavoidable. Whatever you do, don’t take the general “pink slip” route. Nobody feels good about being laid off, but he’ll feel better about it if you meet with him one-on-one.

Be sure to give each laid off employee information (preferably written) about the benefits she’ll be receiving, along with any telephone numbers she might need.

One thing you might consider is offering job placement assistance to your laid off employees, career counseling, or other help in finding another position. If the layoff is immediate, be sure to have assistance lined up to help them pack their belongings.

Informing the company.
This needs to happen almost simultaneously to the layoffs. It’s important to tell your employees first before the rest of the world. There have been so many instances where employees have found out about layoffs on the evening news or the morning newspaper. You owe it to all your employees to be straightforward and upfront with them. Communicate clearly, honestly, and effectively about the whys and the hows of the layoff. Tell them the real story, but also give them the big picture – assure them that this is a tough period, but one that you will persevere together. Whether you decide to inform employees during a company meeting or through a memo depends on your individual circumstances and company culture. One of the best layoff tips is to conduct a face-to-face, but that is up to you. Regardless, you need to make yourself available to answer any questions that your employees may have regarding the layoff.

Keeping up morale.
Remember that it’s natural for your remaining employees to suffer low morale following the layoff, so it’s critical to institute some type of morale-building program to help counteract the effects. Team-building activities, low-cost company celebrations, employee acknowledgments…all contribute to rebuilding morale and trust.

While these layoff tips have been collected to help guide you during a difficult time, and give you some practical how-to advice, they are not intended to represent legal advice. Employment laws vary from state to state, and country to country, so be sure to consult the laws that govern your particular location. Take these layoff tips as advice, but let your conscience - and your attorney - be your guide.

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