The Layoff

It seems like laying people off is one of the hardest things for business people to do, so why aren’t we taught how to do it correctly. It’s important to assess the situation and determine which layoff procedure will be best for your company and your employees. It is hard to choose who will be the ones to go, but when this is your only option to cut costs and keep your business afloat, you need to understand what method will be best.

You can go with a first in-first out method, where you get rid of those who have been with the company the longest and are close to being done, because you can offer them early retirement. You can look at performance and use the rank-and-yank method, where the people with the worst performance scores on the last appraisal are the ones to leave. There is the last in-first out method, which gets rid of those who have the lease seniority with the company. Or you can look at areas of business that aren’t productive and cut that unit to refocus on the core of your business. Each of these methods has advantages as well as downsides, which is why it is important to evaluate your situation to determine what you think is best.

It is also very important to keep morale up during times of questionable work stability, because if all of your employees are overanxious about losing their job then no one will be productive and your company will have larger problems. Although there are all these possibilities to look at when you are conducting a layoff, I think it is important to have a system in place so you don’t set yourself up with lawsuits. If you do the layoffs on a person to person basis you are more likely to get charges of discrimination than if you had a plan drawn out that you could just put into play.

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Published in: on November 1, 2009 at 4:50 PM  Leave a Comment  

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