Role of HR during a Layoff and Reduction
Rekha Kumbhat
Serial Women Entrepreneurs | Helping Corporates with complete Spectrum of HR Solutions | Facilitating Import & Export of Metal |
A layoff is a temporary suspension or permanent termination of employment of either an employee or a group of employees for business reasons, or downsizing of an organization. Basically a layoff occurs as a cost-cutting measure. Some collective layoffs are strategically done for workforce reduction and optimization.
In the current scenario of covid-19 pandemic, the damage to the job market will have a long lasting impression. According to a survey, nearly nine out of 10 start-ups believe that the pandemic-related lockdown has affected their work-life balance leading to salary cuts and layoffs.
HR consultant responsibilities:
1. Evaluate the reasons for layoff and ensure that they are in accordance with the employment program
2. Assist and educate department executives with planning and managing layoffs, the effects of employment downsizing on those laid off, long-term financial performance and communities
3. Ensure that the layoff notice is properly prepared and signed by the official who has the delegated authority to do so
4. Make sure that the signed layoff notice is properly processed and delivered to the employee.
5. Ultimately, shape and strategize the organization with regard to workforce issues.
It’s important to show compassion and stress the fact that the layoff is not the employee’s fault. Layoff announcements have an overall negative effect, hence it becomes necessary to think carefully whether layoffs are unavoidable or there are other flexible measures through which the organization can retain its top talents.