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How To

3 Tips to Effectively Manage Layoffs

Don't be a bad news delivery man instead take responsibility
3 Tips to Effectively Manage Layoffs
Image credit:
Entrepreneur Staff
Senior Correspondent, Entrepreneur India
3 min read

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

No matter how much you try and avoid, layoffs will haunt you at some point in time. In the recent years, with volatility in the global economy, layoffs have become a common occurrence and it's considered as one the most difficult times of the company.

Even though layoffs are an unplanned event, it invites bad press but most importantly stains the reputation of the company in the human capital market in long-term and will affect the overall nature of the business

We cannot tell how to avoid layoffs as it's a part and parcel of the business. However, considering the nature of the process, which is typically unpleasant and has a negative impact on the reputation the company and its leadership, we can help to ease out the process. Here are the four ways to effectively manage layoffs:

1. Communicate:

Ajay Shah, Vice President and Head, Recruitment Services, TeamLease says communication is a very critical and the most effective action and hence, it important to communicate wide and open to the employees.

"Delivering the message directly and openly to the impacted employee makes it more personal and respectful. It's also important to stay empathetic and give guidance to the departing employee," he said to Entrepreneur India.

He also feels the management shouldn't just be a bad news delivery man; instead, Shah feels that they should take full responsibility for the event and should not blame others for its decision.

2. Assurance to Remaining Employees

Normally, layoffs also give rise to insecurities about the competence of your human capital. The remaining employees will begin to question whether they will be next in line to suffer a layoff or whether they are of true value to you, which is bad for business.

And hence immediately after you downsize, (Col) John Chenetra, President, SecUR Credentials suggests that you should reassure your workers their importance in the business. If possible, try out cross-training and introducing skill upgradation programme.

"The individual and his peers will take this as an acknowledgement and endorsement of the employee's varied skills that they could utilize elsewhere. The employees will feel valued and they will be happy to maximize their potential," he added.

Outplacement support

Shah also advises companies to consider job referral schemes, sponsoring participation in job fairs, resume counselling amongst other tools to help ease the transition for terminated employees

While on the other side, Chenetra notes that a lot of organizations are also taking responsibility by talking to recruitment partners for out placing these layoffs for helping the employees with re-profiling & giving them exposure to opportunities outside.

"It sends a signal to them and to the remaining employees that you're treating the ex-workers as people, not as line items on a budget. Human resource team plays the biggest role here," he points out.


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