Unfortunately, layoffs are often unavoidable when the economy shows signs of a slowdown or the company is struggling and cannot survive without drastic measures. However, there are right and wrong ways to cut staff. Here are five strategies to consider when laying off employees:
- Reduce costs without cutting people – This may seem obvious, but look for all of the other places you can reduce costs before reducing headcount.
- Understand your labor laws – A management team that does not factor in the various labor laws across states when laying off employees can get into trouble!
- Develop a fair process – Ensure your layoffs are as fair as they can be. Think about the moral obligations to keep employees working.
- Apologize – Build a bridge between management and employees. Take responsibility for strategic mistakes. Take your time when reducing headcount. If your layoffs go poorly, it can damage your company’s reputation.
- Re-invest in laid-off employees – Help employees get back on their feet. Whether it’s with severance packages or non-wage benefits like career assistance.