Organizations are continually looking to increase their productivity, profits, and introduce changes internally through different tools. Budgets need to be kept in balance and to do that. Several staffing changes take place periodically. One of the tools for doing this involves layoffs and furloughs.
In recent times, many more organizations have to use these tools for obvious reasons. These can be due to severe budget constraints mostly, but also other reasons. Now, during this challenging period of the pandemic, all of these processes are virtual.
Of course, when it comes to discussing difficult topics like layoffs and furloughs, HR always needs to be very careful in their dialogue delivery.
First, you need to understand the difference between a furlough and a layoff.
Furlough- A furlough is a temporary leave of absence, unpaid, for a specified period. In this case, the organization or employer decides to relive the employee from their role for a certain period due to various personal or societal reasons.
Although furloughs are quite common amongst seasonal businesses, in the corporate world, it is often a cost-saving tool that the company can implement instead of a permanent layoff.
Layoff- Layoff is more of a temporary Reduction in Force. Very similar to RIF, a layoff often actually ends up with the employee finding a new job during the period, as there is no guarantee whether the company will recall them or not.
The main difference between a furlough and a layoff is that in the case of the latter, the employees have no idea if the company will recall them again, so they typically look for other jobs. Meanwhile, in furloughs, the employees know that their job is still safe in the company, and they may resume if they wish to, upon recall.
When it comes to telling your employees virtually about furloughs and layoffs, there here are some of the most important Do’s and Don’ts’s’ that you should follow:
Do’s:
- Do it on a one-to-one basis
The time is finally here when you need to have that awkward conversation with your employees. Keeping in mind that everything is virtual now- make sure that you call each employee personally via video call, preferably. If you are planning on laying off more than one employee at a time or planning a leave, then it is best to address each employee at a time, rather than on a group call.
Remember, this is a compassionate discussion, so don’t rush through it. The amount of time that you would take for recruiting an employee, you should take double the amount during their layoff.
Don’t:
You should never layoff your employee via a text message or an email. It is too impersonal, and it can be quite a dangerous strategy, especially since you are dealing with such a sensitive topic.
Do’s:
- Compensation for retrenchment
The HR staff needs to be sensitive, empathetic, and understanding when it comes to matters of laying off and furloughs. You never know what kind of situations or circumstances an employee is going through in their life.
If you decide to layoff one or more employees, providing them with a pink slip is imperative.
This will ensure that the employees have enough time to find another employment, while not putting them in a financially dire situation. You should provide the employees with adequate compensation before deciding to go ahead with the layoff.
Don’t:
Of course, your organisation may be in a very tough spot. Maybe you are deciding to layoff your employees with a heavy heart, but you have no other choice.
Do not simply drop in a text, email, or call and tell them about your decision all of a sudden. Moreover, proper counselling is also essential, as a decision like this could lead to many difficult situations in the employees’ life.
HR should also communicate the reason for the reduction with the employees individually. It is essential to communicate with them that the organization believes that they are assets of the company and that there are certainly compelling reasons as to why the company is taking this decision of layoff or furlough.
Do’s:
- Offer references and head-hunters to employees
It can be challenging for an employee to find a job after furlough or layoffs. HR should try and provide proper reference letters for each of the employees so that they can find other jobs if they need to.
If possible, the organization should also provide reference links or contacts of head-hunters who can help these employees find new jobs. As far as possible, extend your help and support to the employees during this kind of a difficult time.
Don’t:
The HR or company should not make a decision to remove an employee out of vindictiveness or personal reasons. There should not be any judgment or ill feelings when making this decision.
Instead, the decision to layoff the employee or opt for leave should be due to sound and compelling reasons. If the company does decide layoff an employee due to personal reasons, it would eventually hurt the company, as the employees would refrain from being loyal to the company.
Do’s:
- Re-train existing staff for better roles
You can also provide training to your employees, which will allow them to take other roles in the same organization. This could be a level up, or even down, but with the right kind of training and adequate compensation, it could be a good alternative for employees going through a layoff.
Many employees would be willing to work in different roles within the company, and the organization should give that option to them.
The situation of the world, as well as the job market, is quite tricky. Finding a new job can be challenging, especially during these times. If you decide that it is vital for your companies’ survival to layoff your employee, then it is good to follow these simple do’s and don’ts while doing so.
Don’t:
Don’t simply inform your employees that they will be without a job, and will have to look after their own interests. This is not only insensitive to your employees, but will also create a dissonance amongst the employees who are still working in your company. It will create an atmosphere of uncertainty and instability, which may have bigger consequences in the long run.
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