“With the utmost sadness, I must notify you that your position has been terminated. A representative from the Human Resource team will get in touch with you this week to complete the transition.”
The beginning of 2023 has not been a smooth ride for the corporate ecosystem due to the increase in the mass layoffs. Many companies have been sending layoff messages to their employees, informing them of the gut-wrenching news of their sudden layoff.
We understand that this is the terrifying message that any company needs to deliver at some point. But being part of hiring industry from last 4 years and hire 8000+ candidates, we can tell you that there are better ways to bid a positive farewell to your employees during these tough times.
The worst part is even the world’s top companies have become prey to these layoffs. Here are some statistics by INC42 that showcases the present conditions of various companies:
- 98 startups including unicorns BYJU’S, Cars24, LEAD, Ola, OYO, Meesho, Udaan, Unacademy and Vedantu have laid off 26,868 employees.
- Since the start of 2023, as many as 8,093 employees have been fired by 50 startups across sectors.
- Meta laid off 13% of its workforce, the first mass layoffs in the company’s history, resulting in 11,000 job losses.
We understand that Layoffs elicit a range of emotions in the workplace, including sadness, practicality, compassion, and sympathy. That’s why, as a professional hiring platform that has helped hire 8000+ candidates over the last 4 years, we believe we can share some good recommendations on how to be compassionate with your employees during layoff times and make this transition as smooth as possible.
Factor affecting layoff and how it impacts businesses
Layoffs are regarded as a period of great sadness in the corporate world. It is a time when people lose their valuable jobs overnight.
…And now, we constantly hear in the news that a company has laid off hundreds and thousands of employees without a second thought.
However, it’s not just the companies. After lots of research, we found out that there are several factors that have contributed to the global layoff wave, including corporate restructuring, a lack of funding, cost-cutting measures to reduce excess workforce, and redundancies due to job elimination. And at the end we found out that
Layoffs often result in breaking companies!
- Due to this, many businesses have to let go of their top employees to plan in favor of reducing expenses to weather the coming storm.
- They can negatively impact employee experiences and cause workplace anxiety.
- They can harm the company’s image if the process is completed in the wrong way.
However, by maintaining trust and being compassionate, companies can gain a positive response from this unlikely situation.
A recent study showed that companies that build trust during layoffs recover faster for their business and brand.
Now as we have told you the concrete reason behind these sudden layoffs, let’s discuss why it is important to bid goodbye to your employees smoothly and positively.
Importance of smooth layoff process
How you fire people directly impacts how your employees perceive your company and will eventually reflect how much you respect your remaining workforce.
If you do it the wrong way, it will not take laying off employees to spark an undemanding controversy that will endanger your company’s image and plans.
A smooth layoff or transition will give the affected employee the impression that they have been treated with dignity and respect. This way, you can reduce fear and anxiety in the affected employees, making them more collaborative and leaving them with a positive impression of your company.
That’s why, being a professional, you always need to prepare an effective, efficient, and standardized process for dealing with layoffs and find the best way to deliver this news to preserve your dignity and be the employer of choice for your future employees.
Now, you must have understood the impact and importance of a smooth transition while laying off.
However, are you aware of the strategies you must follow when faced with the prospect of letting employees go?
If not, don’t worry! Being a professional hiring platform, we are here to share some ways that can help you handle layoffs with the ultimate professionalism and integrity.
Strategies to lay off employees smoothly
Establish a Solid Layoff Plan
Hiring is tough and so is laying off employees. Following that, some of our clients told us that a solid layoff plan can do magic for any organisation.
A solid layoff plan ensures that the entire process runs as smoothly as possible. To prepare a viable strategy, you can
- First identify the positions they want to eliminate.
- Second, be prepared to inform affected employees of the layoff.
- Third, while communicating, you should notify them why you made this decision.
- Last but not least, thank them for their contributions to the organization.
In the entire process, it’s important for companies to maintain complete transparency and clear communication about why employees are being laid off and help them move on as smoothly as possible.
Handle layoff with care
Employees are the lifeline of every organization, and mutual respect is your foundation to maintain their trust. If you have welcomed them with respect, you should do the same while bidding them goodbye. Giving the layoff news to the impacted employees is not easy, but as soon as you take this burden off your chest, it would be good for both you and the employees.
To do that effectively, you can strike up a personal and direct conversation and update the employees as soon as possible by giving them notice that their jobs are going away. In the discussion, don’t forget to express how sorry you feel you’re letting them go and that it’s not their fault. Furthermore, you can also allow them to share their experience and voice their concerns if they have any.
Offer them a severance package
Another way to support your employees during this challenging time is to provide them with a severance benefit. Severance pay is the compensation or benefit paid by the employer at the time of layoff. We have been a part of many clients’ hiring stories in last 4 years and after lots of discussion about it, they shared a few good tips which we believe other companies could also follow to maintain a positive relationship with the laid-off employee such as:
- Extended healthcare coverage or insurance benefits
- Assistance finding another job
- Payment for unused vacation time
Such benefits and extra help will significantly assist them in finding their next job and soften the blow of an involuntary termination.
Arrange private meetings
The layoff news can impact the leaving employees both emotionally and mentally. They may take time to process the situation and have lots of unheard questions in their mind. So, you can arrange a one-to-one meeting to provide your employees with a safe space to vent their emotions about the situation. This will allow you to address their concerns they may have and help them understand the real reasons behind the unprecedented situation.
Gather constructive feedbacks
Feedback can be a game changer for businesses and its co-workers’ lives. Some of our clients shared that during the layoff time, hearing and acknowledging your employees’ concerns can significantly improve your company’s environment. You can also conduct surveys to get their honest feedback on what worked and how you could handle similar difficult situations in the future. With the feedback provided, you can proactively address areas for improvement in your business and create a better work environment for future employees.
Moving forward after the layoff
Managing layoffs is a stressful and overwhelming task. However, handling layoffs with extreme caution is critical because they can harm a company’s future. That’s why businesses should prioritize communication over leaving employees to gain their trust and bid them farewell with a positive experience.