How to lay off employees and remain an attractive work place
When a large number of
employees' employment with an organization is ending, the term
"layoff" is interchangeable with and frequently linked to ideas like
reduction-in-force (RIF), downsizing, rightsizing, termination, firing,
reengineering, restructuring, and voluntary separation options (VSO).
Organizational layoffs are intended to increase productivity, the outlook for
the economy, and general competitiveness, and they are frequently seen as the
sole means of preventing bankruptcy for businesses. (Neto, 2018).
When
a layoff is announced it is very hard for those who are directly involved with
the layoff. for example right after thanks Giving holiday in the year
2018 General Motors announced they were going to shut down
5 manufacturing plants and it will lay off around 15000
employees .according to the company they will save 6 billion dollars due
to this layoff. (Lynch & Telfor, 2018)
Due to the high labor
rates in developed countries, companies tend to outsource their production to
cheaper markets due to low costs and tax purposes. for example, AT&T shut
down 44 call centers in the past 10 years and workers offshore paid only 2$
compare to 10$ in the US (Sainato, 2018).
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Either firing a single employee or laying off
a group of workers will be a very difficult job for a human resources manager
to manage (Mujtaba, Ping, & Jieqiong, 2013; Sarwar, Khan, & Mujtaba, 2018).
Reasons for layoff?
There
can be many reasons for layoff. here are some to consider as per the Indeed
website.
1 .
Company relocation
2.
Closing business operations
3 .
Management's decision to reduce the cost.
4 .
Mergers and acuistions
5 .
Management decides to outsource the business.
6 .
Financial issues
7 .
Offshoring
8 .
Projects cancellation
Tips to lay off employees
with dignity
1 . Recognize the pain - When there is a layoff inside the company, it is
a difficult time for everyone. It is not suitable for management to act
joyfully at this moment. Making such decisions could harm the feelings of those
who have been laid off, and management should recognize that this is a
difficult time for everyone.
2 . Remain objective - it is easy to personalize
a layoff but it is not productive. Managers should be careful when selecting
positions to eliminate. They need to be very careful when speaking to the
employees about layoffs.
3 . Plan carefully - The layoff must be planned
properly and executed well and HR should coordinate with management as to how
they going to fill the gaps in the organization.
4 . Consensus Building - Whatever the reasons
can be for the layoff but its management should come up with an agreement on who
will effect by this and how they are going to continue the operations.
5 . Treat employees with respect - it's the management's
responsibility to respect and protect the dignity of the employees who are laid
off .for example every employee should have a chance to discuss their layoff.
6 . Support remaining employees - if there
is a layoff in the organization this will affect the productivity level of the
remaining staff as well so it's important to motivate the remaining staff to
get the full potential from them.
Conclusion
A layoff can be a difficult time for the
employees and employers in the organization .organization may require layoffs
for cost reduction, restructuring, and change according to the market trends.
However, it can affect very negatively on business reputation. so its
management responsibility is important to solve this issue with the affected
employees sensitively.
Keerthi, V., 2022. www.news.crunchbase.com. [Online]
Available at: https://news.crunchbase.com/startups/tech-layoffs-2022/
[Accessed 27 April 2023].
Good selection of topic. Layoff is a hard decision to carry out. But once it comes as essential, the company needs to implement it for the continuity of the organization and maximization of the ROI.
ReplyDeleteDear Abdul , u discussed somewhat different but interesting subject, good work
ReplyDelete8 reasons of lay off is bit scary and risky for an employee. Anyway nice topic and well presented. I was enjoying reading. Thank you for sharing your knowledge with us.
ReplyDeleteGathered some valuable Information and contents are really useful
ReplyDelete