Managing Workforce Reductions Top
Because layoffs are often part of weathering a lackluster economy and aren't necessarily permanent, employers who manage their workforce reductions well can expect to improve their organization's image, productivity, profits, and staff morale. Here are some tips to consider if your company finds itself facing potential layoffs:
- Tell employees the bad news in complete detail as soon as you know it. Most executive teams fear mass panic and walk outs. However, this is not usually the case. Anxiety will be high no matter what you do so it's best to respect employees' intelligence and address the worst case scenario far in advance of the possible event.
- Speak to people face-to-face. Firing people over the phone, with a memo, or an e-mail message leaves a negative and lasting impression on the employees being terminated as well as the ones remaining—the ones you now need the most.
- Instead of pep talks that fall flat, outline and detail the reasons behind the actions your company must take. Share the facts -- not platitudes.
- Don't abruptly bounce employees out the door. Allow people to say good-bye to coworkers, business partners, and customers. Let them stay after work to pack up their personal belongings. Extending these courtesies reduces resentment and often allows coworkers and their immediate supervisors to transition projects and key accounts to the remaining staff.
- Don't assume the rest of the employees are grateful just to have their jobs. The remaining employees identify with those laid off. Morale and productivity may drop if those laid off haven’t been treated fairly and given company support, which includes severance packages and outplacement services.
- Typical severance packages average two weeks of pay with an additional week for each year worked.
- Common outplacement offerings include resume writing, job searching, interview skills, group workshops, and one-on-one coaching.
- After a few weeks, start discussing the downsizing as a step toward a more efficient, competitive, and profitable business. Look for ways to streamline the work so the remaining employees aren't overwhelmed. Discuss future career moves with the remaining employees to identify areas for additional training and support.
Available Reduction Management Services Top
Rapid Response -- A strategy for responding to major layoffs and plant closings sponsored by the U.S. Department of Labor's Employment and Training Administration and managed by the Oklahoma Employment Security Commission (State Dislocated Worker Unit) and local workforce development agencies.
Rapid Response teams work with companies to customize public and private efforts to minimize the disruptions of major layoffs on the downsizing businesses, the affected workers, and their communities. Services—most of which are offered without cost to the employers—include helping companies set up outplacement services for dislocated workers, handle media relations and manage the internal rumor mill, meet governmental reporting requirements, understand their rights and responsibilities under employment laws and regulations, and plan for and avoid future layoffs.
You may also contact Oklahoma’s State Dislocated Worker Unit: Lynda Baird, Rapid Response Program Director, Oklahoma Employment Security Commission, 2401 N. Lincoln Blvd., Will Rogers Memorial Building, Oklahoma City, OK, 73152, 405-557-5395; Fax 405-557-1478; Lynda.baird@oesc.state.ok.us
Workforce Reduction Regulations and Tax Issues Top
Worker Adjustment and Retraining (WARN) Act -- Helps ensure advance notice in cases of qualified plant closings and mass layoffs. The U.S. Department of Labor issued a series of guides to provide employers and workers with an overview of their rights and responsibilities under the provision of the WARN Act.
Unemployment Insurance -- The Oklahoma Employment Security Act provides that under certain conditions unemployed people can receive money from an unemployment compensation fund contributed to by employers subject to the Act. Detailed FAQs on who must pay the Unemployment Benefit Compensation Tax, what constitutes a valid claim, and how to protest a claim
Contact:
Terry Watson
405-815-5206
800-879-6552
