4 Mistakes that Businesses Make When Announcing Layoff

Letting people go is the last thing an organization would want, but there are times when this is the only option left. It is true that layoffs are hard, but companies often make them worse by not handling them in the right manner. Let’s look at some of the common mistakes that employers make when laying off the workforce.

1. Improper announcement

Breaking the news via conference call or email is not right. It gives your people an impression that you don’t care at all. While some of the leading corporations have chosen these modes to makes the announcement, it’s important to understand that one needs to be sympathetic towards employees. Having an all-hands meeting to announce the news, and meeting the impacted employees in-person is something that businesses should do.

2. Letting important people leave

Layoffs are often the decisions made in a hurry. There is a possibility that you might fail to identify the right people that should not be a part of the decision. In most cases, companies don’t have time to recognize employees who can be fit for other roles in the organization. To avoid this, take help from people at the management level to understand skillset of people and fit them somewhere else in the same ecosystem.

3. Not adhering to the law

Organizations often forget that even if people are employed “at-will”, there are a few rules that must be followed at the time of asking them to leave. As per the rule, one has to give advanced notice or give the suitable remuneration for the layoff. It always makes sense to consult an attorney to understand the legalities of the situation.

Also Read:5 companies that laid off employees in 2018

4. Not treating employees properly

It is often seen that managers follow the scripted procedure during a layoff completely forgetting that the person on the other side is also a human. It is advisable to take this decision sapiently. They should also never forget to be thankful to your employees for what they have done for the company. Help the employee collect their belongings and give them time to say goodbye to colleagues.

Handling a layoff in an improper way can affect the morale and dignity of the employees affected by the decision. Also, this might affect the reputation of an organization, and you might find it difficult to attract talented resources in the future.