Ways to Solve Handling Mass Layoffs

With news of massive layoffs going rounds, we deep dive into understanding how organizations can handle layoffs better and compassionately.?

Christina did not know how to react or what to do. She was laid off from work within two days of joining a social media giant in Canada! She felt devastated, and tears rolled up in her eyes. After working in a tech firm in Hyderabad for four years, she moved to Canada to live her dream. She faced the long and gruelling visa process with a smile as she dreamed of working and living in Canada. But within two days, her world crumbled. The irony is that she did not even get a chance to work for the company. Christina’s is not a unique case. Many such employees were laid off for no reason of theirs.

Why do layoffs need to be handled correctly?

There are multiple reasons why organizations lay off their workforce. Even in the peak of the Great Resignation, too, some companies laid off large numbers of employees. But?the announcements of layoffs in Elon Musk’s Twitter?caught up like wildfire.

Most layoffs happen for cost-cutting and lack of a requirement that crops up due to mergers and acquisitions or sometimes technological interventions replacing manual jobs. Whatever the reason, mass layoffs have a huge impact on the employees, especially the affected. That said, the remaining employees in the organization also feel distressed and demotivated, affecting productivity.

The fact is that layoffs rarely help companies achieve their goals. Senior leaders who aim to achieve short-term gain often resort to layoffs. But the cost saved is usually eclipsed due to bad publicity, higher voluntary attrition, unstable engagement, and lack of innovation. In fact, it really hurts the companies in the long run.

Layoffs happen due to forged documents and fake letters, too

Companies like Accenture and Cognizant have found that some employees have joined their organizations with forged documents and fake experience letters. There is an increase in layoffs due to failed background checks and moonlighting in those companies. Experts opine that we can hear similar episodes in other organizations in the coming days.

According to reports, Cognizant India sacked 6 per cent of its workforce in Q2. However, they are terming it as involuntary attrition. Accenture India laid off employees over forged documents and fake experience letters earlier. Experts say that the number of people getting jobs using fake documents has increased during and after the COVID-19 pandemic.

It’s here the services of background verification agencies like Verifitech come to the rescue. Background verification is vital to safeguarding an organization’s safety and reputation.?As part of the verification process, companies like Verifitech check whether the experience produced by the employees is true.

By availing services of?Verifitech, you can ensure the profile’s integrity. This is critical as companies want to ensure projects are completed on time and maintain the company’s ability to serve their clients.

Regardless of the painful situation, you will be able to progress smoothly in the layoffs if you have done the proper groundwork. In an effective layoff, HR should establish an empathetic communication network to deliver the message. It’s also vital to provide support in their transitional phase.

Why is planning critical in mass layoffs?

Proper planning, preparation, and communication are needed to reduce the impact of layoffs. A well-thought-through and planned layoff plan will ensure that the employees realize that it was not done in haste but for the company’s prospects.

HR should be able to understand all the details related to the layoffs in advance, much before the formal announcement is made. They should find answers for and finalize matters like severance pay, healthcare, retirement benefits, employee assistance, and outplacement services. Be prepared to answer questions and concerns from many employees and be ready with honest answers. Any delay in response can further deteriorate an already sensitive situation.

Own up and let the employees know

The layoffs can be due to poor management or failure to achieve financial goals. But eventually, the company leadership is accountable for downsizing. The management needs to make it clear to all employees that the layoffs are not a consequence of the specific employee’s performance or a particular team’s efforts. The management should convey that the layoffs result from overall company performance and top management decision-making.

How to communicate layoffs to employees

If you’ve decided to downsize the workforce, give your employees enough notice to appraise their alternatives and possibly take a voluntary call to leave the company or stop their association.

When announcing layoffs, tell the team what the course of action will be. Be transparent about the company’s state and finances and what made you decide to lay off staff.

It’s always better to give advance notice to employees about layoffs so that they can read their resumes and reach out to their contacts or other potential employers before they are laid off. It can make a sea of difference for them for sure.

Let the managers deliver the news

Layoff notices should be conveyed by managers or team leaders to the employees as they are the ones they are in constant touch with. Have HR personnel as a support to assist them, but managers should be the primary facilitators. In fact, managers or team leads will be able to handle the situation better and respond to queries related to layoffs.

It’s vital to meet with each employee you’re laying off individually. Please give them a heads-up about the meeting so they can concentrate on the conversation at the meeting. If your entire workforce is remote, managers can convey the details through phone calls at a certain time. Whatever the case, don’t shock the employee with an unexpected call or communication on the layoff.

It’s better to offer the laid-off employees a week or so to carry over a positive transition. It gives the laid-off and remaining employees closure and wishes goodbye.

Take care of the remaining employees?

Mass layoffs disturb the entire company, including the staff not part of the layoff proceedings. They will be watching how the company treats the laid-off employees, and their morale will already be very low. Carrying out the layoffs with compassion and respect will make the remaining employees understand the situation and put in their wholehearted effort.

Legal Help?

The last thing you want would be to get into legal trouble with the layoffs of the employees. Countries have various federal and state laws regarding layoffs, and senior leaders should consult with a lawyer before conducting layoffs to meet all legal requirements.

Conclusion

Globally, organizations are struggling to find a way out of the continuously fluctuating economy. Besides, technological advancement is transitioning manual work into automated ones at a great speed. In this melee, companies are not sure whether their existing employees can help them to bring success to the company. This, coupled with short-term financial prioritization, creates an environment that necessitates layoffs. But employees are the lifeline of any organization. Instead of resorting to knee-jerk layoffs, senior leaders should think and try various methods to utilize the talent, upskill, or transition them to suitable roles.

Though layoffs are always challenging with adequate planning and communication during the process, companies can try to reduce the overall impact of layoffs on the organization.

Employees may forget the day organizations hired them, but they will certainly remember when they were asked to leave the company. So do your best to make the day as professional as possible.