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CHECKLIST

PRE-LAYOFF GUIDELINES



Before considering a layoff or downsizing you should plan to address the following checklist:

Prepare a layoff policy if you don闁炽儲鐛?already have one. Emphasis on the importance of objective factors like company needs, financials, seniority, past work performance, anticipated needs for skills and experience, and compliance with laws. Create a 闁炽儲绗nking闁?process using these factors, and follow it consistently through a form-based approach.

Ask your lawyer and review team to analyze your Reduction in Force (RIF) procedure before and after it is implemented.

Consider hiring an industrial relations statistician to review a RIF decision before they are implemented to prevent disparate impact discrimination claims.

Analyze possible alternatives to downsizing such as wage reduction, benefit reduction, and elimination of overtime. Approach your employees and find out if they can think of new ways to generate business. Look for old projects that can be expanded or old clients that can be reactivated. 

Increase company communications including company and individual expectations, benchmarks, guidelines, and feedback mechanisms.

Be open with information. Share your financial position with your employees through open book management. 

Assist those who will be leaving through severance packages, out-placement opportunities, consulting agreements, counseling services, employee assistance programs, etc.

Offer early retirement or voluntary resignation with a severance package. If you want employees to stay beyond a certain date, state that the severance will be paid only if employees stay through that date. Require the signing of a release as consideration for any severance package.

Offer counseling services for those who stay.

Prepare an information sheet to hand out to employees explaining the layoff or downsizing process. Consider a question and answer approach.

Restructure the organization. Involve your employees and create flexibility, performance agreements, and a compensation system that is based on the value contributed by each employee. Downsizing without restructuring is a formula for disaster!

Avoid claims and litigation by departing employees through separation agreements, and a strict adherence to company guidelines. Be particularly sensitive to older workers, long term employees, women, and minorities.

Remember that there is a cycle of change and loss that applies to the workplace as well as the home life. That cycle is denial, anger, bargaining, depression, and eventual acceptance.

Use a grievance system, ombudsman or hotline program to handle complaints of unfairness.

Provide departing employees with required handouts閼辩禈nd pamphlets閼辩旦elated to continued medical benefits and unemployment rights.

Celebrate the emergence of the new company!



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