Tadiwa Njagu
Professor Lewis
HRM530
8\10\2015

Within any company, managers must be reminded that the focus of a layoff is not on the actual individual being released, but rather on the position itself. The layoff decision is made based on the needs of the company and the position. If the individual is not fulfilling the position or if the position is no longer necessary, the company must make the decision to let the person go. With this perspective, managers can prevent as many negative emotions as possible and it will additionally affect the communication between the manager and employee being laid off. When the employee is reminded of the true purpose of the decision, they will accept the decision more easily than if he or she feels personally attacked over the situation.
Three Ways Managers Can Cope with Negative Emotions
Communication is the most crucial component in the layoff process—especially in order to cope with any negative emotions which may arise as a result of the layoff. Three strategies which can be implemented within the communication process include speaking to the employee in a private place, recognizing the employee’s contribution to the company, and prepare yourself (as the manager) for any anxiety or emotions which may arise from either yourself or the employee. According to Berkley (2012), and employee may show any of the following reactions during the meeting:
* Shock/silence
* Depression
* Negative attitude toward work
* Increased accidents
* Loss of Productivity
* Grief
In addition, managers or supervisors may find it difficult to perform the layoff and experience any of the following:
* Shock
* Anger
* Frustration
* Insecurity
* Resistance to Change
* Depression
Strategies for preparation and recovery include (Par. 5):
* Be knowledgeable about the layoff process and available resources
* Understand the employee's perspective
* Handle your own anxiety by preparing yourself
* Talk to other supervisors or managers who have had similar experiences
* Maintain open communication
* Don't downplay or discredit the employee's concern
* Allow the employee to express how s/he feels
Step-by-Step Process of Conducting the Dismissal Meeting
The dismissal meeting can be a very daunting task, but a step-by-step process will allow managers to approach it more confidently and prepared for possible obstacles. Provided below is a planning map which provides instructions based on the meeting’s possible direction.
Action | If met by opposition |
Speak to the employee in a private place | |
Recognize the Employee’s contribution to the company | Be as sincere as possible |
Briefly explain the layoff | If necessary, but blunt and direct about the reasons for the layoff |
Describe the employee’s options and what the HR department will offer | Remind the employee that they have options that they will not be left in a difficult position |
Provide the employee with clear instructions as to when the layoff will take place | |
Offer support and sympathy | Provide the employee with your attention and listening ear. Be supportive and willing to listen to their complaints or emotions |
Schedule another meeting with the employee to discuss further plans such as when they will turn in their company keys, etc | Keep detailed discussions to a minimum so that the employee has time to emotionally prepare themselves for the change |
Assure the employee that you will be available to answer any of their questions | |
Compensation for the Separated Employee and Timeline of Compensation Disbursement
Assuming that the separated employee had been employed by the company for 14 years, the compensation benefit plan offered by the company provides the employee with one week of pay for every year they were employed by the company plus any applicable cost of living adjustments. The payment amount would reflect the same hourly pay the employee received while under employment. In other words, the employee would receive 14 weeks of compensation from the company after being laid off. The payment schedule would reflect the same payment schedule the employee experienced while being employed which was bi-monthly. Thus, the payment schedule would be the following, assuming the employee was laid off August 31 and earned $1500 per week.
Sept 15 | $3000 |
Sept 30 | $3000 |
Oct 15 | $3000 |
Oct 31 | $3000 |
Nov 15 | $3000 |
Nov 30 | $3000 |
Dec 15 | $3000 |
Included in the benefits package offered to the employee is the option for the single lump-sum, which pays the employee the full amount of their layoff benefits in one lump sum. However, it would not include any relevant cost of living adjustments. The employee would receive it within 30 days of being laid off.
Three Ways the Layoff May Affect the Company
Even if a layoff is completed successfully and with little resistance, there are possible negative effects in which the decision can have on the company. These include:
* Decrease trust among valuable employees
* Hidden costs, such as severance packages, may cause the layoff to be ineffective
* Workplace morale may decrease
Companies are oftentimes hasty to undergo layoffs as they feel they are eliminating their ineffective employees and building an environment full of strong and effective employees. However, this does not guarantee that the valuable employees will remain loyal to the company and it is important that managers do not depend too much on these employees. Layoffs can also decrease trust among the valuable employees as they may worry that they too could be laid off. Oftentimes, layoffs imply that the company is struggling and is forced to downsize. Communication in this case is therefore important so that employees understand they are not only valued, but that the company does not plan on laying off any more employees.
There are many hidden costs which can be associated with layoffs and are not often accounted for by companies before layoff decisions are made. “The direct costs of layoffs from outplacement services and severance pay can add up initially, but indirect costs—like losing experienced sales and marketing employees who have strong relationships with clients—can cause lasting damage to a business” (CBS, Par. 3). Within the benefits outline above, the employee has been promised compensation of up to $21,000, but this does not include the cost of replacing the employee, training the employee, and the HR costs of the entire process. It is important that the company prepares for the financial losses which may be a result of the layoff.
The final way in which the layoff could affect the company is the workplace morale as employees may feel threatened or saddened by the loss of their coworker. Communication, again, is important in ensuring that the employees understand exactly why the layoff was necessary and how it will improve the company’s long-term outlook. If the employees are supportive of the layoff, they will be able to move on from the change much more quickly. In contrast, if they feel it came as a major surprise and without good reason, they will show strong resistance to the change.
Conclusion
The layoff plan outlined in this report provides several approaches to the process including the initial layoff interview and ways in which the company can cope with resistance to the change. As long as the company is clear about the process and fair to the individual being laid off, such a process can occur smoothly with very little obstacle. An important component in which managers should keep in mind is being prepared for the emotional aftermath from both the employee being released as well as the manager forced to perform the release.

References
Bergfeld, C. (2008). “The Hidden Costs of Layoffs”. CBS. Retrieved from http://www.cbsnews.com/8301-505125_162-51208899/the-hidden-costs-of-layoffs/

“Layoff: Communicating with the Employee”. (2013). Berkley. Retrieved from http://hrweb.berkeley.edu/er/layoff/departments/communication/employee

“Layoff and Reduction”. (2013). University of Washington. Retrieved from http://www.washington.edu/admin/hr/roles/mgr/endemplmnt/layoff/