When Handling Layoffs, HR Leaders Should Focus on These 6 Actions

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In recent years, the hiring landscape has been bumpy, to say the least. Job seekers and hiring managers alike have dealt with unpredictable, tumultuous, and unprecedented twists and turns, starting with mass layoffs in 2020 followed by the tightest labor market?in two decades , rising inflation, and geopolitical instability wreaking havoc on supply chains across the globe.

Today, unemployment is down, but so is hiring. With the wind-down of the “Great Resignation,” more people are staying in their current roles while prospective employees — especially recent college grads and other less-experienced applicants — struggle to break in. The market is healthy overall, but some economists suggest that this kind of hiring stall can precede a recession, meaning layoffs could be on the horizon.

Over the past few months, employers have added just 116,000 jobs per month, compared to 451,000 two years ago. While the 2022 job numbers are attributable to the post-pandemic hiring boom, growth is more conservative today than the pre-pandemic norm. And while unemployment remains low, there have still been some big layoffs this year, especially in the tech sector. Intel reduced its labor force by 15% in August, while Cisco announced its second round of layoffs around the same time. Big names like Amazon, Tesla, and Microsoft have undergone significant layoffs in the past year, but smaller startups are also not immune.

With the future of the job market so uncertain, one thing is clear: the old way of doing business needs to change. Many corporate leaders are already aware of this in their onboarding and HR processes for current employees. But in this unpredictable economy, it’s crucial that leaders also fine-tune their offboarding processes, which shape employee experience whether they are laid off or depart voluntarily.

One factor that has massively reshaped the onboarding and offboarding landscape is remote work. For layoffs in particular, many people are now let go over video calls in their own homes, an unprecedented experience for everyone on both sides of the conversation, making the process less controlled and more personal than ever before. Some employees have even filmed their layoffs and posted them to social media, making it crucial that employers conduct these events in a way that is as respectful, generous, and beneficial to the employee as possible. Failing to do so can be harmful to employees’ mental health as well as the company’s reputation.

While most companies may not yet be amid a layoff surge, signs suggest that they could be coming. Now is the time for HR leaders to prepare for this possibility to ensure that both their employees and companies are protected. A new initiative from isolved offers guidance for HR leaders looking to improve their offboarding process and to provide laid-off employees with the resources they need in their career transition. An alternative to COBRA Health Insurance, the isolved Portable Alternative Coverage Powered by When (isolved PAC) provides tailored coverage to COBRA-eligible employees along with expert guidance around both healthcare and financial planning.

"While much emphasis is placed on creating a seamless and engaging onboarding process, it’s equally important not to overlook the offboarding experience,” shared Celia Fleischaker, CMO for isolved. “A positive and stress-free offboarding not only reflects the company’s commitment to its people but also helps departing employees leave on a high note, fostering goodwill and protecting the employer brand. Ensuring a respectful and well-managed exit can turn former employees into long-term advocates and even future rehires."

To prepare for a future in which layoffs may be on the rise, HR leaders should consider new solutions and processes that can better help their employees navigate a changing world. While the exact landscape of this changing world remains to be seen, employers will always need to be ready to make changes to the workforce and to make sure their employees are prepared for what’s to come.

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