The company recognizes that a reduction in force is traumatic
to the manager and the employees being affected. To minimize
problems, preparation is essential.
First, the manager should be familiar with the procedures
involved with this reduction. The events that occur from the
time a company considers the reduction in force through the actual
separation are described below.
Phase I: Planning the Reduction
- Management reviews the workforce and determines what function
and which people must be impacted by the reduction.
- The list of employee names is reviewed by each department to
ensure that the affected job classifications as well as the
individuals selected are appropriate. (The need to minimize rumors
and speculation of who is on the list is critical.
Confidentiality must be maintained throughout the selection
process.)
- The list is reviewed by human resources to ensure consistency
with all applicable polices. Any potential problems are
brought back to management's attention for resolution.
- Some thought should be given to handling large groups scheduled
for separation. The need to control rumors and protect the
morale of those remaining is critical.
- Are You Subject to File WARN? Some employers are required
by the “Worker Adjustment & Retraining Notification Act” to
file a “WARN” notice 60 days in advance of a plant closing or
layoff. Get the
details.
Phase II: Notifying Employees
- Managers, possibly accompanied by human resource staff members,
will handle the separation interview. Therefore, it is
essential that managers understand the separation process. The
formal training may be supplemented by the following reading
materials:
- "Managing the Separation
Interview"
- "Surviving Layoff"
- "After the Dust Settles"
- "After Downsizing, How to Rebuild"
- Affected employees should be notified at the beginning of their
shifts. Evidence has shown this to be most effective in
allowing employees to deal with the reality of the situation, while
giving ample time to cope with details. In the case of large
numbers of people, you may choose to gather the affected employees
in a conference room or other large room. A general
announcement to the affected group may then be considered.
Employees should be offered outplacement services immediately
following their notification.
After the time of notification the manager and/or the human
resources representative should give the following information to
the employee:
- Reason for reduction and the reason specific workers are being
affected.
- Date of separation.
- Ask employee to turn in his/her badge and any keys or other
company property in his/her possession to human resources during
the notification (or as soon as possible thereafter).
- Outplacement/Counseling Services: All affected employees will
be eligible to participate in company-sponsored outplacement
services. Human resources support should be available
throughout the outplacement process.
- All affected employees should receive their final paychecks,
which includes severance pay and unused vacation/sick pay, on the
day of separation.
- Employees eligible for the current semester tuition
reimbursement will be reimbursed pursuant to company guidelines.
Those employees should send copies of their tuition and book
receipts and grade reports to the human resource department or
another identified person or department.
- Ask each employee to clear out his/her desk or locker
immediately after notification. Ensure that a managerial
person is available to accompany the employee. If the
employee would rather return after hours to do this, schedule a
time during the notification interview.
- On timecards, the manager should write "N/A" in place of the
employee's signature and write "RIF" (reduction in force) in the
remarks space.
Phase III: Outplacement Services
As a company contemplates a reduction in workforce, it is to
its benefit, and the benefit of the affected worker, that a
representative contact WORKFORCE CENTRAL FLORIDA early in the
process and schedule the delivery of outplacement services.
Outplacement services can be provided on site at the company
on the day of the layoff, or at a WORKFORCE CENTRAL FLORIDA office.
WORKFORCE CENTRAL FLORIDA staff can provide a variety of services
including:
- Filing of Unemployment Insurance Claims
- Resume preparation assistance
- Employability skills workshops
- Individual career counseling
- Vocational assessment and interest testing
- Creative job search assistance
By working closely with WORKFORCE CENTRAL FLORIDA and
scheduling the provision of reemployment services for the worker,
the manager will convey to the workers that they are valued will
offer encouragement to the employee to take immediate positive
steps.
Phase IV: Separation Details
Payroll should mail any final separation payments (for
example, tuition reimbursement) to the employee's home as soon as
possible. Affected employees should report any change in
address so that future mailings (i.e., 1099 forms) can be mailed to
the employee without delay.
Phase V: The Aftermath
- Motivating your remaining staff is important for morale and
production. Read the articles contained in the Appendix,
"When the Dust Settles" and "After Downsizing - How to
Rebuild" for recommendations for returning to a normal work
environment as quickly as possible.
- There are many resources available. Managers hould utilize
the professionals of the company's human resources department to
help resolve any problems or answer any questions.
