The purpose for writing this paper is to describe and explain the steps involved in coordinating and heading a dismissal meeting for an employee layoff. The contents of this paper will include a proposal of ways that a manager can cope with any negative emotions that may accompany an employee layoff. There will also be mention of a step-by-step process used in conducting the meeting. In addition, the human resource manager of the organization will determine the compensation that will be allotted by the company. Included will be a chart depicting the timeline of the disbursement for the compensation. Last, the author will predict three (3) ways the layoff will impact the company.
Coping with Negative Emotions Accompanying a Layoff
When coping with negative emotions in the event of a layoff, the Human Resource Department should have a face-to-face and a well-thought-out plan. As part of the strategic plan HR should consult with a legal counselor to be in sync with the legal implications and risks of every aspect of the layoff. Each involved in the layoff should be treated with respect. The person being affected should be provided a private meeting with a manager; given the opportunity to ask questions, and informed of any transition support that the company is offering, be it verbal or in writing.
Transition support means that the managers are finding out if there are possibilities that there may be another area or location in the company that could take some of those that will be affected, training for another position, reaching out to other employers for job openings, a separation package which includes financial benefits, and employment assistance program to help the affected deal with the job loss. A generous severance package is one way to help the person being affected with the layoff because it provides monetary benefits. The severance package also gives the person the impression that the company has compassion.
Step-by-Step Process of Conducting a Dismissal Meeting
When conducting a dismissal meeting, the first thing that should be done is to be honest with the employee and advise him or her the purpose of the meeting. The meeting should be away from the hearing range of other employees, and there should be a witness accompanying the manager. The manager should be direct and advise the candidate that the decision is final and cannot be reversed. Make the candidate aware that all alternative in-house options were explored, and all pertinent factors were reviewed. The manager should tell the employee the effective date of the termination. Next, produce a written summary of benefits: severance pay, continuation of health and life insurance benefits, compensation for sick-time and vacation, re-employment assistance programs, and other benefits.
In the case of immediate termination or layoff, the final check, benefits and vacation should be ready, if possible. Also, make available a written summary of projects to ensure a smooth transition if the employee will remain a temporary active employee for whatever term. If an employee has to leave the job immediately, the manager should collect keys, cell phones, laptops, and any other company property. Last, end the meeting by informing the employee that he or she will be notified of any future matters, such as COBRA continued health coverage. Express confidence in his or her future, and wish the employee good luck. At the meeting the manager should stand, extend his or her hand, and remain standing until the employee has exited the room.
Organizational Compensation Provision
The definition of separation pay is defined as money or benefits paid to an employee who is either laid off or separated due to events out of the employees control. A few examples of this are changes in management, ownership, governmental regulations, downturns in the economy, or environmental conditions. A company has to elect to provide separation pay or severance packages to an employee, and the employee is not eligible for separation pay if he or she voluntarily resigns or is terminated from his or her job. An example is that the employer of AYZ Company will provide the separated employee one week’s pay for every year that he or she has worked. The employee made $2000 a week and worked 10 years. Therefore, his or her compensation will be broken down to two payments a month for five months. The employee will be paid $2000 every two weeks on the 1st and 15th of each month
Impact of layoff
In most cases, an organizations reputation is usually harmed in layoffs and downsizing. Organizations that downsize may have some benefits, depending on the circumstances behind the layoffs and the strategy that is implemented. Downsizing also poses problems for organizations with long-term employment relationships. According to the authors of Human Resource Management 530, “downsizing alone is not as effective as downsizing combined with other efforts to change” (Stewart, G. L., & Brown, K. G. (2012). In addition, the layoff also causes a ripple effect that causes the team to break. Three implications for the organization are decreased customer loyalty, emotional distress, and increased turnover. Decreased customer loyalty occurs when an organization sends out a message to the stakeholders that it is going undergoing a crisis of some sort. The layoff can have a momentous effect on customer retention Emotional stress goes beyond the people or person who is laid off.
The remaining employees also suffer emotionally; not knowing what his or her fate will be in the future. Thus, the emotional stress causes the productivity level and morale to decrease. Last, there is increased turnover. The execution of layoffs promote employee uncertainty; therefore, the employees resign from his or her job and seek employment opportunities from other companies. Employees may exhibit signs of anxiety, which could consequently promote a decrease in work performance. At the onset of layoffs, the company could very easily lose its key talent, which affects the organizations human capital.
This is why it is vital that the leadership of an organization that is in the mist of layoffs recognize and deal with the emotional well-being of its employees. Meetings should be the norm for a company that is on the brink, or that is actively involved in downsizing or layoffs to dissipate any rumors that may be circulating, and set concise, obtainable short-term goals. In conclusion, the price for a company that is downsizing can be expensive in more ways than one. There may unanticipated costs and legal challenges. That is why it is imperative that a company considers all the implications, and devise a strategic plan to guide the organization in the implementation of a layoff. If the organizations intentions are to restructure, investors are more favorable to companies that reorganize responsibly. Wachovia is a prime example of this.
Olsen, Lindsay, 2012 May 8, 3 Severance pay questions every employee should ask.
U.S. News and World Report retrieved on November 11, 2014
Valenti, Catherine, 2013 September 7, How to cope when you’ve been laid off. ABC News, retrieved on November 12, 2014, from ABC News Internet Ventures
Stewart, Greg L., Brown, Kenneth G., 2012, Human Resource Management: Linking Strategy to Practice, 2nd edition, Hoboken, N.J., John Wiley & Sons, Inc.