The human resources department handles the most unpleasant tasks of an organization, and laying off an employee might be on the top of the list. Laying off an employee can induce a lot of emotions from sympathy to sadness. And since you are not letting them go for performance-related reasons, you may feel guilty and bad about delivering the bad news.
As an HR employee, how do you deliver the bad news the right way? How do you hit the balance of being direct and empathetic? Most of all, how will you make your feelings sincere?
Firing vs. Laying Off an Employee
While both of them result in employment, there is a striking difference in terms of the reason why.
There are a lot of reasons why an employee is fired. Perhaps, one of the most common reasons is because of their unsatisfactory performance on the job. An employee might also be fired for misconduct and unethical behavior, including harassment, theft, and insubordination. When an employee is fired, they have no chance of being rehired by the same organization in the future.
But when an employee is laid off, it normally has nothing to do with their performance. Rather, employee layoff occurs when an organization undergoes downsizing or when it goes out of business. Sometimes, an employee’s layoff may be temporary, and they have a chance to be rehired when the economy ameliorates.
How to Lay an Employee Off Compassionately
How do you make the tough transition as easy and less-guilty as it can be for you and your employees? These are some tips worth considering:
1. Prepare the layoff plan.
As part of the HR department, you are responsible for the preparation of the layoff plan. Here are the things you should prepare for:
- Talking point – Plan what to say to the laid-off employee carefully. Be sure to include the reason for the layoff. Additionally, we do not recommend that you memorize the whole script, as it will sound insincere and unconvincing. Instead, read and say your points out loud and sincerely.
- Legal Document– Review all the documents to make sure that you comply with all employment laws.
- Timing and Details – Be prepared for the employee’s official last day by providing the facts in writing. The paperwork should include a notification of termination as well as an FAQ that answers all possible questions they might have.
2. Laying off an employee should be handled with care.
Mutual respect is the foundation of an employee’s life cycle up until their last day in your company. You become respectful toward each other from hiring to counseling. I hope that that respect remains the same when you are letting them go.
Laying off an employee is one of the most difficult conversations you will have as an HR employee. That is why you have to be prepared and make sure that you express clearly that it is not their fault. By letting them know this, it will take some of the hurt out of the conversation.
3. Identify those who need a transitional period.
Whatever the outcome of your layoff conversation, it is important to know that it will not be the same for everybody. Especially for some key employees with important institutional knowledge, you have to keep them around for a transitional period.
Not only this benefits you, but it also provides some relief to those departing employees considering how they receive a notice before their termination.
Through this process, you might even come to the realization that some employees are too valuable to be let go. If this situation arises, you can always change your original plan. Plus, it could save your organization from costly and critical mistakes.
4. Give incentives to your transitional employees.
For the record, your transitional employees are in a position that mostly benefits your company. That’s why you need to let them understand their importance to the process.
Consider thinking about the incentives you can give the employees during their stay in the transitional period. It is conventional, after all, to offer perks to encourage your employees to stay and do a good job.
For instance, for those who want to leave right away, you can offer them a severance package of, let’s say, six weeks. But for those who would stay for a month, you could offer them a severance package of 12 weeks.
Furthermore, you can offer them a retention bonus. This retention bonus can come in the form of a lump sum at the end of the process. Or, you can divide it month by month.
At the end of the day, their decision will depend on their personal perspective. So be sure to be prepared for some to turn down the proposal.
5. Give your transitional employees a flexible schedule.
For those who agreed with your offer, be sure to let the situation be favorable to them by giving them plenty of flexibility on the job.
Flexibility means giving them time to go on job interviews. Don’t hold them to 48-hours per week schedule, especially when they need to be out for an interview. You can also offer them reduced hours, a flexible schedule, and a lenient atmosphere.
When you give your transitional employee a favorable schedule, you are allowing them to separate from your company on good terms. They will be happy to work and get a paycheck, and you will receive a job well done.
6. When laying off an employee, you must provide them outplacement assistance and support.
Showing your appreciation for your laid-off employee goes a long way in building professional goodwill. If possible, you may offer them outplacement assistance to get assistance with things like resume or career-transition. This shows that you truly care about their future and career.
Additionally, you can provide them letters of recommendation for their next employment. Assisting them in finding their next role can make the transition a positive one. Plus, it opens room for future opportunities.
Laying off an employee compassionately is risky, yet, it might be the best for the both of you. Be sure to help them throughout the whole process. You never know, you may find yourself in a position where you have to hire them again. So be sure that you maintain connection and good relationships with your laid-off employees.