CHAPTER 13
Corporate (“No Fault”) Actions
No fault actions are often the most difficult concept to explain to employees. After all, they’re no one’s fault. They’re simply the result of doing business in an economy that sometimes appears to be based on survival of the fittest. Layoffs, department closures, and plant relocations are simply the fallout of global competition in a changing business world.
In fact, it’s arguably easier to terminate someone for cause than to lay them off. Why? Because with a termination for cause, the employee could at least see it coming and arguably had some ability to avoid the outcome. That’s not the case with layoffs, where positions are eliminated, and the people occupying those positions are then let go, often without much warning or notice.
However, if you see yourself as a coach, consultant, facilitator, and networker who is willing to help your displaced worker, you may just lose some of that panic feeling that goes along with letting people go due to downsizings. Simply see yourself as their champion and initial support network. After all, it does eventually happen to almost all of us, and the goodwill that you spread at this point for others may very well come back to your aid at some point in your own career.
Of course, if your company offers its displaced workers outplacement services, then the outplacement provider will do all those things and more. It’s important that the laid-off individuals understand that you’re not simply sending them packing without an action plan, safety net, or follow-up support system. In short, be there for your staff members when they are most vulnerable, and know that you’re helping them through a traumatic time in their careers.
For instance, you might want to provide them with copies of their performance reviews so that they could show them to prospective employers as a reference. Provide them with information regarding unemployment insurance coverage, benefits continuation through COBRA, and then remain in touch with them, if for no other reason than to listen to their issues and needs. If possible, extend the company’s Employee Assistance Program (EAP) services to both the displaced workers as well as their families, should the need arise for more in-depth counseling. With that type of dedicated attention, most workers can refocus on their future rather than bemoaning their past.
Scenario 83: Layoff: Position Elimination—LIFO
LIFO is the accounting term that refers to “last-in, first-out,” meaning that the last person to be hired will be the first person to be let go during a business slowdown. This is actually the easiest conversation to have because the layoff is simply a matter of tenure and seniority and has little or nothing to do with individual performance, personal style, or popularity.
The Solution
Open up your conversation with the impacted worker using a straightforward yet caring approach:
Belinda, in an effort to reduce costs, we are restructuring our business, and that will result in the elimination of a number of positions in our company. Unfortunately, your position has been selected, and I’m afraid we’re going to have to lay you off. You’re the last person hired in our department, and as a result, I’m afraid you’re the first person to be impacted by the layoff. Does that make sense? (Pause.)
I’m afraid today will be your last day of work with us, and we have information to share with you regarding your severance package, COBRA, and unemployment insurance. I know this is a lot of information coming at you at once, and I’m so sorry to have to relay this message to you, but before I go any further, I want to stop here and see how you’re doing. Are you okay? (Pause.)
Just so you’re aware, a number of other positions are being eliminated throughout the day.
You’re under no obligation to define that number more specifically. If three, thirty, or three hundred people will also be laid off, you’re probably best off keeping that confidential at this point. Otherwise, the impacted worker may slip and inadvertently start a whole gossip chain and grapevine that makes its way through your entire company like a lightning bolt that day. The day after the layoff (or possibly at the end of the notice day) is the best time to fully inform the remaining employees of the reductions in force that took place. This way, people can come together with information and facts that will help them begin to heal from the loss.
Out of respect for the other people involved, I’d ask that you say as little as possible today to other employees. We’d prefer to tell the affected employees ourselves because we want to avoid people hearing about this through the grapevine if we can help it. In addition, I know that some people prefer to leave quietly while others want to say good-bye to a few close friends. We’ll respect whatever decision you make. How do you think you’d like to handle that?
Also, Janet, will you need help packing up your desk? Can we get you boxes, do you need a lift home, or is there anything else you could think of where we could assist you with your move? Finally, I just want to thank you for all your hard work and dedication for the past two years and say I’m so sorry for what you’re going through. You’ve made it a better place around here, and I’m personally going to miss working with you. Thank you for all you’ve done for us.
Special Note
Many management consultants recommend avoiding saying you’re sorry. After all, they reason, saying you’re sorry is an admission of weakness and guilt, and this is simply a business decision. It’s not your decision, so there’s no reason to say you’re personally sorry.
Nonsense! What’s critical about communicating with employees is that you treat them with respect and convey your feelings adequately. If people are treated with dignity, they will typically respond in kind. If your company lays off workers due to a reduction-in-force, then don’t let that last impression be cold, distant, or formal. It’s okay to say you’re sorry that this is happening to them. Don’t let anyone walk away from your company saying to themselves, “After years of giving my heart and soul to this company, no one even bothered to say thank you for all my hard work or sorry that this had to happen.”
Remember, when employees walk away feeling underappreciated or taken advantage of, they’re more inclined to look for ways to sue. When, in comparison, they feel they were treated fairly—even though they don’t like the outcome of your company’s decision—they’re more inclined to come to terms with the layoff as a fact of business in the new millennium and get on with their lives.
Scenario 84: Layoff: Position Elimination—Lack of Qualifications
Understand that layoffs may not be purely a matter of eliminating a particular position; sometimes individual performance does indeed play a role. On the one hand, if an entire department is going to be outsourced, then all employees in that area will typically be laid off. These are straightforward reductions in force that are fairly simple to present and explain.
On the other hand, if one secretarial position is going to be eliminated and there are four secretaries in a particular department, then management has the responsibility of evaluating the pool of candidates and selecting the least qualified individual from within the group. In such cases where there are comparison pools, management typically needs to look at all four employees’ overall qualifications: performance reviews, tenure, disciplinary history, attendance records, education, special skills, certifications, and the like. At that point, one individual of the four will be selected for layoff based primarily on documented performance and the “fit” factor. How you pose your presentation in this situation may be a bit different than in Scenario #83.
The Solution
Under the circumstances, expect a reasonable employee to challenge you in the heat of the moment. After all, panic typically sets in at the time of notice: How will I continue to pay my mortgage? What’s going to happen to my health insurance? How will I make ends meet? Once the employee learns that her peers will be retained, however, and that she’s going to be the only one let go, escalation of frustration and outright challenge may result. So let’s look at how to present this information in the most supportive and constructive manner possible, realizing that you won’t want to disclose too much information to confuse the impacted worker:
Laura, in an effort to reduce costs, we are restructuring our business, and that will result in the elimination of a number of positions in our company. Unfortunately, your position has been selected, and I’m afraid we’re going to have to lay you off. This is such hard news to deliver for me because you’re such a hard and dedicated worker, and I’m sure this comes to you with a great amount of surprise. (Pause.)
Today will be your last day of work with us, and we have information to share with you regarding your severance package, COBRA, and unemployment insurance benefits. I know this is a lot of information coming at you at once, and I’m so sorry to have to relay this message to you, but before I go any further, I want to stop here and see how you’re doing. Are you okay? (Pause.)
Assuming she gives you the green light to continue, proceed with your conversation as follows (not mentioning the fact that she’s the only one of four secretaries to be laid off in your department):
Just so you’re aware, a number of positions are being eliminated throughout the day. Out of respect for the other people involved, I’d ask that you say as little as possible today. We’d prefer to tell the affected employees ourselves because we want to avoid people hearing about this through the grapevine if we can help it. In addition, I know that some people prefer to leave quietly while others want to say good-bye to a few close friends. We’ll respect whatever decision you make. How do you think you’d like to handle that?
Also, Laura, will you need help packing up your desk? Can we get you boxes, do you need a lift home, or is there anything else you could think of where we could assist you with your move? Finally, I just want to thank you for all your hard work and dedication over the past two years and say I’m so sorry for what you’re going through. You’ve made it a better place around here, and I’m personally going to miss working with you. Thank you for all you’ve done for us.
Once the initial head rush is over, the employee may want to leave quietly or say good-bye to friends and peers. If the employee chooses to leave quietly, encourage her to do so. Follow-up conversations that night and in the next few days will help you place the pieces of the puzzle together for her, especially in terms of the specific answers to questions that she may develop.
However, the employee may respond with questions on the spot, which is also reasonable under the circumstances. Examples of such questions and appropriate responses might include:
Question: Why was my position chosen for elimination?
Answer: It was a business decision. Please don’t take this personally; when a reduction in force occurs, positions are eliminated. The people who are attached to those jobs then get laid off. It’s the hardest thing a manager can do. Eliminating positions is so difficult because you realize that people’s lives will be interrupted. That’s why I’m so sorry that this is occurring.
Question: Who else is being laid off? Am I the only one in our department? Why me?
Answer: Laura, I can’t share who else is being laid off in the department at this point. We haven’t spoken to the other individual(s) yet, so I’d ask that you allow me to hold off on answering that for now. [Or]
Yes, yours is the only position in our department that’s being eliminated. Again, please don’t feel that you’ve disappointed anyone. I want you to know that you’re rehirable once the hiring freeze is lifted. For now, though, understand that we had to eliminate one head count, which is why your position was impacted.
Question: How can that be? Who’s going to do all the work that I do once I’m gone?
Answer: That was part of the pre-layoff analysis that we performed, and I want you to know that we’re very aware of all the work that you do. I’m afraid we’ll have no choice but to divvy it up among the remaining staff members. Travis is here from human resources to discuss some of the details related to your severance package and other important benefits details relating to this layoff.
Question: Wait. You can’t lay me off and keep Rachel. I have more longevity than she does!
Answer: I recognize that. I want you to know that we did indeed consider tenure in our decision, but it wasn’t the only factor. I’m not in a position to provide more details at this point. Just know that tenure was one of many considerations. Are there any other questions that I could answer for you?
Special Note
As you could see, these conversations could get uncomfortable. As this example demonstrates, it’s certainly okay to tell someone that they’re going to be the only one laid off in the group. But it’s probably not a good idea to lay out the criteria you’ve used in selecting who would be retained versus who would be laid off (i.e., tenure, performance appraisal records, technical certifications, and the like). Similarly, it’s not okay to justify the reasons for your overall conclusion in selecting Laura for the layoff versus other members of the team.
In short, the actual analysis behind the decision is for the company and its lawyers to know. No one else, including the impacted employee, should be made privy to the details supporting the company’s ultimate decision. If this sounds cold or secretive, it isn’t meant to be. The reality is that sharing too much information with a highly charged employee may likely result in the worker misinterpreting what you tell her or hearing only what she wants to hear. Therefore, even if you feel a burning desire to share all the details that you’re aware of—refrain! Too much information can be a bad thing when, seen in a vacuum, the larger picture is lost.
Scenario 85: Layoff: Position Elimination—Union Bumping Privileges
Union layoffs pose yet other twists to the layoff process. Although union contracts differ, the basic concept that unions espouse is that tenure trumps all (unless the company can prove otherwise). In other words, all else being equal, those with the most longevity should be protected, while new hires with little tenure remain at risk.
If your employees are governed by a collective bargaining agreement that contains language regarding “union bumping privileges,” then understand that the union contract is attempting to create a systematic process for defining seniority protection according to a preset formula. Typical language in a union contract may read:
An employee without sufficient seniority to remain in his/her classification in the department may exercise seniority rights to displace a less senior employee:
(a) Within the same department in a lower classification, provided that, in the Employer’s reasonable judgment, the employee seeking to displace has substantially the same or better work-related skills, qualifications, abilities, performance record, disciplinary history, and attendance record as the potentially displaced employee, or, if no such positions are available,
(b) Outside the department in the same classification, provided that, in the Employer’s reasonable judgment, the employee seeking to displace has substantially the same or better work-related skills, qualifications, abilities, performance record, disciplinary history, and attendance record as the potentially displaced employee.
You can see from the language here that whereas the union will argue for seniority-based selection, the company will argue for merit-based selection in order to retain the most talented individuals—not just those who have been around the longest. Let’s look at how it works, and more important, what you may need to say to handle someone who is “bumped” as a result of a union contract’s bumping provisions.
The Solution
The sample language from the contract looks at both movement within and movement outside of the impacted employee’s department. Let’s say you work for a university where the position of Clerical Specialist II is a covered classification in a union contract with these preset bumping provisions. If your administration department is required to eliminate one position, and that position is a Clerical Specialist II, then you would look at the least tenured individual in that role. (We’ll call him Charlie.)
You do a quick analysis from paragraph (a) and see that there is no one else within the department in a lower classification (e.g., Clerical Specialist I) who could be laid off instead of Charlie. Therefore, you then look to paragraph (b) to see if other Clerical Specialist IIs in other departments may have less tenure than Charlie. With HR’s help, you develop a list of all Clerical Specialist IIs throughout the entire university system based on tenure, and you learn that there are six workers in other departments at the university whom Charlie could potentially displace because he has more tenure.
When it comes to union bumping privileges, you have to do an analysis (again, with the help of HR or your labor relations group) of each of those six people, making note of why or why not each employee is potentially “bump-able.” You remove some people from the list because they have specialized skills and others because they work the graveyard shift, which has its own training requirements, and you then realize that one other person, Barbara Jones, who currently works in the operations department, could be laid off instead of Charlie.
Therefore, although a position is eliminated from the administration department, Charlie bumps into Barbara’s job in operations. The net result is a position elimination in administration and a staff replacement in operations. (After all, although Charlie’s position is now gone, he gets to bump Barbara out of her role in a different department because she has less tenure than he does.) As Barbara’s supervisor in operations, your meeting with her might sound like this:
Barbara, I called you into this meeting with me and union steward Michael Shanahan to let you know that in an effort to reduce costs, we’re restructuring our business, and that will result in the elimination of a number of positions in our company. Unfortunately, your position has been selected. Being in the union, you’re unfortunately the least-tenured Clerical Specialist II on campus, and as a result, I’m afraid you’ll have to be laid off.
Today will be your last day of work with us, and we have information to share with you regarding your severance package, COBRA, and unemployment insurance benefits. I know this is a lot of information coming at you at once, and I’m so sorry to have to relay this message to you, but before I go any further, I want to stop here and see how you’re doing. Are you okay? (Pause.)
The employee may respond with questions or challenges on the spot that you’ll need to be prepared for, which might include:
Question: I’ve heard that layoffs were in the making, but not in our area. Operations is so busy and doing so well. I just don’t understand why I’m being laid off. People have been talking about union bumping privileges. Is that at play here?
Answer: Yes. The union contract looks at tenure according to classification, both within and outside the department. The least-tenured union member on campus is at the most risk because the union looks to protect members according to tenure with the university.
Question: So what’s happening to my job? Is it going away, or is someone else getting it?
Answer: Actually the job that was eliminated is in administration. The person who’s in that position, Charlie Rose, will be transferring into your position here in operations. His tenure, in essence, allows him to “bump you” out of the role you currently hold and transfer into it himself.
Question: How can that be? Why have I been paying union dues and initiation fees—just to make my job less secure?
Answer: In a way. I’m afraid that your lack of tenure puts you at risk in terms of job security according to the union contract. That’s why employees have to do their homework to understand both the advantages and disadvantages of union membership. Union bumping privileges protect tenured union members but at the expense of the less tenured. I’m so sorry for how this is affecting you, Barbara.
Cleary, this employee, like many others out there, didn’t realize that working in a union shop could have negative consequences from a job security standpoint. The point of this book, however, is not to speak negatively of unions. Charlie Rose, the employee who is able to bump into Barbara’s role after his position was eliminated in administration, clearly benefited from his union membership.
Your role here is not to protect or defend the union, per se. Understand, however, that the impacted worker may express a number of negative feelings toward the unforeseen consequences now at hand because of her union membership, and you’ll need to be an empathetic ear on the one hand while helping her focus on the new challenges that lie ahead in finding other, suitable work.
Just be careful not to jump on the bandwagon in terms of putting the union down or otherwise launching into a union bashing campaign with the displaced worker. Yes, you need to provide her with factual information regarding the nature and terms of her separation. But these are tough situations for all, and sensitivities typically run high. Any attempts on the company’s part to speak ill of the union because of these bumping exercises may result in an unfair labor practice charge, and that’s the last thing you or your company needs to deal with under any circumstances.
Scenario 86: Layoff: Position Elimination—Department Closure
Laying off individuals is really tough; eliminating entire departments is excruciating. Companies will eliminate departments for any number of reasons–outsourcing and offshoring being the primary culprits—but whatever the reason, the group meeting is particularly heart wrenching.
The Solution
When calling an entire department into a group meeting, be clear and direct in your communication while demonstrating empathy for those who are being displaced. Allow as much time as necessary so that you can answer all initial questions, and have a support network on hand, such as HR, outplacement, or other service providers who will support the group going through transition. Likewise, have packets of materials customized and ready for each individual. Remember the key rule at times like this is that you can’t have enough information or communication, so keep it coming as steadily as possible.
Your opening statement might sound like this:
Good morning, and thank you all for coming to this meeting. I’ve got some very sad news to share with all of you, and if you’ll please allow me, I’ll get right to it. I’m afraid that our entire department is being eliminated as part of a larger corporate restructuring effort, and the transition will officially begin now. Your employment won’t end today. In fact, we’re hoping that you’ll all agree to stay aboard with us for the next ninety days, which will help you build momentum in launching your job search and also entitle you to a “stay” bonus at the end of the ninety-day period. We’ll talk more about that in a few minutes.
Right now, though, I need to tell you how sorry I am for what’s occurring. Some of you may be aware that because of international competition, the demand to lower costs has simply skyrocketed in the past year. Payroll is the largest expense on our company’s operating statement, and many of our competitors have already offshored positions in customer service and compliance to benefit from lower payroll costs overseas. I’m afraid that it’s now our turn to move in that direction.
I know some of you may feel angry and betrayed by this, and you certainly have every right to feel the way you feel right now. These trends in outsourcing and offshoring are very problematic in general, and I want you to know that the company didn’t reach this decision without a lot of forethought and consideration of how this would impact workers’ careers. However, the cost of not going through with these actions could jeopardize the entire company, and it was only under such circumstances that we came to the conclusion that this was our only way forward.
Now I know this is a lot of information coming at you at once, and before we go any further into these discussions, I just want to take a breather and see how you’re all doing. (Pause.)
Be sure to provide time after your initial introduction to allow employees to vent. Too much information too quickly will leave people bewildered and dazed. There is a natural rhythm to delivering group news, and part of that process must allow time for the information to sink in and for people to voice their feelings.
Once the initial concerns and frustrations are vented, your next focus should be on answering questions and providing information. Expect employees’ queries to focus on the work being abandoned as well as the benefits available for those who are about to be laid off. There’s no such thing as a dumb question at times like these, and giving employees carte blanche to pose any and all questions in a stream-of-consciousness format gets everyone talking, which is very healthy.
With those initial questions addressed, invite everyone in the room to open their layoff packages so that you can review the contents together and out loud. Read the highlights of all forms included in the package, as this will trigger additional questions on the spot. Follow this question-and-answer format until the mass of queries subsides, and of course, don’t be afraid to say you don’t know an answer to a question but will research it and follow up as soon as possible.
Introduce the outplacement counselor, if one is available, and allow that individual or team to conduct a short presentation on the benefits of outplacement services in terms of speeding up people’s job search, updating résumés, conducting mock interviews, and availing displaced workers of industry resources and networks that wouldn’t otherwise be available to them.
If your company chooses not to elect an outplacement firm to aid those who are about to transition, consider asking your human resources department to schedule a résumé writing workshop and also edit and upgrade everyone’s résumé on an individual basis. Additional workshops regarding job change, interviewing, and job search strategies will also be well received.
End your initial meeting on a positive note of aid and assistance, and plan follow-up meetings either with the entire group or with individuals so that they can benefit from the dedicated attention that is so important at times like these. In short, be there for your people when they need you most, keep them informed as to updates and changes as they occur, and be sure that their needs are met both from a professional (job search) and personal standpoint.
Scenario 87: Layoff: Position Elimination—Plant Closure (WARN Act)
If your company has one hundred or more employees and intends to layoff a significant number or percentage of its workers, the Worker Adjustment and Retraining Act (WARN) may require you to provide sixty days’ notice in advance of the layoff action.
First, a note of caution: WARN can be particularly difficult to decipher, so you’ll definitely want to discuss any intended layoff actions with qualified legal counsel. Sometimes companies fail to provide the appropriate notices under WARN, making themselves vulnerable to significant damages. At other times, companies mistakenly apply WARN notices even though they’re not applicable. Therefore, legal analysis prior to any intended group layoff action should always occur. Consider it a cheap insurance policy for your company’s benefit.
Strictly speaking, the federal Worker Adjustment and Retraining Act may govern the notification requirements and obligations of a layoff when you plan to close an entire plant or lay off workers en masse. WARN applies to businesses that employ (a) one hundred or more employees, excluding part-time workers, or (b) one hundred or more employees who in the aggregate work at least four thousand hours per week, excluding overtime hours.
If your company plans to enact a reduction in force that results in an employment loss at a single work site during a thirty-day period for the lesser of (a) at least 33 percent of the employees and at least fifty employees (excluding part-time workers) or (b) at least five hundred employees (again, excluding part-time workers), then WARN obligations may apply.
Are you confused yet? Even if you’re comfortable interpreting the language of the act, consider that if layoffs are planned over a six-month period rather than thirty days, WARN may not apply. Ditto if employees at different work sites or employees of separate and identifiable business units within the same physical site are being laid off.
If this sounds like legal mumbo jumbo to you, you’re not alone. The point to remember is that qualified legal counsel may be able to help you structure company layoffs to avoid meeting WARN’s notification thresholds. In addition, WARN has sharp teeth: Penalties for failing to provide appropriate notice to displaced workers may include back pay for up to sixty days, the costs of employees’ benefits for that period, and fines not to exceed $500 for each day of the violation.
The Solution
Now that I’ve got your attention, let’s look at how you might structure your group notice if WARN does indeed apply to your company:
Good morning, and thank you all for coming to this meeting. I’ve got some very sad news to share with all of you, and if you’ll please allow me, I’ll get right to the point. I’m afraid that our entire plant is being closed down because our company is closing this division of its business, and the transition will officially begin today. Your employment won’t end today, however. We’re giving you all sixty days’ notice not only so that you can help us wrap things up at the facility but also so that you can have additional time to prepare your résumé, initiate a job search campaign, and have enough time to care for your personal and professional needs.
A federal law known as the WARN Act—WARN stands for the Worker Adjustment and Retraining Act—asks companies that are closing plant facilities and laying off a certain number or percentage of its workforce to provide those soon-to-be displaced workers with sixty days of notice to get their lives and careers in order. We’re happy to oblige as that law is something we’d want to do in any case.
Right now, though, I need to tell you how sorry I am for what’s occurring. Some of you may be aware that because of international competition, our industry has suffered seriously in the past few years and is getting smaller every day. As much as the senior management team has tried to keep the company profitable and heading in the right direction, and despite all your hard work and dedication over the years, we have no choice but to close our doors.
I know some of you may feel angry and betrayed by this, while others feel a profound sense of loss. Whatever your initial reaction, you certainly have the right to feel the way you feel right now. I mean it when I say I’m so proud of everything we’ve accomplished together, but it’s time for us to work together for this last, critical mission. And I want you to know that we’ve prepared a number of benefits and resources that will help you through this unforeseen transition period in a number of ways. However, we’ll talk more about that in a few minutes.
For now, I know this is a lot of information coming at you at once, and before we go any further into these discussions, I just want to take a breather and see how you’re all doing. (Pause.)
Your conversation at this point will naturally turn to answering employees’ questions, outlining the programs you’ve established to help them through this transition, and discussing some of the material terms of their layoffs (for example, severance benefits, COBRA, unemployment insurance, and the like). As in Scenario #86, be sure to end your initial meeting on a positive note of aid and assistance, and plan follow-up meetings either with the entire group or with individual departments so that they can benefit from your dedicated attention and commitment to helping them through this trying time.
Of course, the bigger the plant, the more difficult your ability to provide one-on-one dedicated attention. However, even when time and resources don’t allow for that level of care, you can still be there for your people when they need you most. It’s critical, however, that communication and contact don’t fall off after the initial announcement. Instead, keep your people informed and up to date by practicing MBWA (“Management by Walking Around”) and having a physical presence whenever possible. After all, when you signed up for a career in managerial leadership, it was by design a career defined by wins and losses. Be sure that your leadership shines just as brightly when you’re facing the losses that come with the territory, even if your own position is scheduled to be eliminated along with those of your coworkers.
Scenario 88: Follow-Up Discussions with Survivors After Layoffs Occur
Downsizing, right-sizing, outsourcing, offshoring, restructuring, reductions in force—you name it, but there seems to be no shortage of acronyms and euphemisms for shedding people in corporate America, which seems to expand and contract almost like an accordion these days. And maybe that’s understandable seeing that payroll-related expenses still show up as the highest cost on a typical corporate P&L statement.
Up to now in this chapter, we’ve focused on how to address the individual worker or workers who are impacted when their positions are eliminated. It becomes equally as important to address the survivors on your team who will be called on to assume the remaining workload and who will simultaneously have to come to terms with this significant loss of friends and peers in a post-layoff environment.
The Solution
After an individual member of your team is laid off due to a position elimination, meet with the remaining members of your team either that day or first thing the following morning to openly address and acknowledge what has occurred.
Everyone, I called this meeting right now to let you know that we’ve unfortunately had a position elimination in our department, and Laura has been laid off. Some of you may have seen her before she left yesterday, and others of you may be learning about this for the first time.
I know it’s pretty shocking either way, and I wanted to bring us all together to discuss this. First, I want you to know that Laura handled the news very professionally and with a lot of class, as she does in so many things in her life. It was a shock to her, no doubt, but I explained that position eliminations happen to all of us from time to time and have almost become a rite of passage these days, which she understood. We’re also able to assist her in her job search by offering her outplacement services, which will help her update her résumé, give her access to jobs and company profiles that are proprietary, and they’ll even enroll her in a number of workshops that will help her hone her interviewing and résumé-writing skills. In addition, she qualifies for a severance package that will help her navigate this unexpected change in her career plans.
I want to answer your questions, but I’ve got a few points that I’d like to make first:
1. Laura is rehirable immediately, and should something change where we could hire her back, we’d be very happy to consider that.
2. We’ve treated her with respect and dignity, and she responded in kind, so we’re all on good terms. Therefore, there’s no need for walking on eggshells or otherwise feeling uncomfortable if you see her.
3. The company has no further plans to lay off anyone else in our department or elsewhere after today. Just so you know, though, there were other layoffs in different parts of the company yesterday as well. It’s important that you realize, though, that the plan was to get these things over all at once so that the remaining employees wouldn’t have to worry about additional waves of layoffs impacting them.
4. We’ll all take a close look at Laura’s responsibilities as they’ll need to be divided up among the rest of us. That doesn’t need to happen today, though, and you can give some thought to that in the next few days.
5. Remember that any calls from prospective employers or head-hunters need to be forwarded to human resources. It’s not appropriate for any of us to share references, good or bad, because of our company’s privacy policies. As is always the case, please don’t feel guilty if someone asks you for references and you have to refer them to HR. We’ve given Laura (and everyone else impacted by yesterday’s layoffs) copies of their own performance reviews so that they could share them with prospective employers as evidence of their strengths and weaknesses. Now, all that being said, let’s discuss some of the questions that you have.
This is a respectable and professional way of handling messages about individual position eliminations because it answers the immediate questions that people have (e.g., “Will Laura be well taken care of?” “Is my job in jeopardy now as well?”) and also outlines your expectations regarding references and other policy and procedure matters.
What would be different about your conversation, however, if a group of individuals was laid off instead? Group layoffs tend to produce greater ill will toward the company, and that resentment may often show itself in demonstrations of anger, defiance, or apathy. In such cases, your role as a manager will be to refocus your team on the bigger picture and not allow them to get lost in all the angst that comes from such sudden trauma in the workplace. In addition to covering the previous five points, add the following closer to your announcement meeting:
I sense some anger and resentment out there, and that’s to be expected at times like these. But remember that sometimes you have to change your perspective in order to change your perception. In other words, look at the situation from a different perspective and you may experience its results very differently.
For example, don’t forget that—yes, you’ve worked very hard for this company for many years—but the company has kept our families fed and roofs over our heads for just as many years. And as much as I’m going to hate to see us getting along without the four members of our team who were just laid off yesterday, we’re still obligated to earn a good day’s pay for a good day’s work. That means that our production goals and our productivity targets still need to be met. However, we’ll get that done in a more flexible manner than has been done in the past. In short, I want you to know that I’m still on board and fully engaged and willing to help you in any way that I can. I’d like you to consider joining me in looking at this sad situation as something that we could all learn and grow from in terms of being there for one another. Please give that some thought over the next few days as we all look to rebuild in light of our loss.
Focusing everyone on the fact that the company’s kept you all employed and helped send your kids to college is an important reminder at a very stressful time. Answer the group’s questions honestly and openly but refocus them on what’s important, which is that they’re all still employed and have a job to do. The company is relying on them more than ever. And you need their support to let the healing begin and reinvent yourselves as a group in light of this new and unexpected challenge. You may just find that the surviving employees demonstrate a greater appreciation for their jobs in addition to a loss of any entitlement mentality that may have crept into the culture over time.