5 Ways to Ease the Pain of Layoffs

The road of layoff history is littered with bad examples. Some of the worst stories, Canavan
says, are from employees who were notified of their job loss via e-mail or text message. Dealing
with a layoff is difficult for both employer and employee, but it doesn't have to be unbearable.
You can soften the blow with some of the following strategies.

1. Go one-on-one
Canavan recommends notifying affected workers of the decision in private before the word is
out. "They should be told in a respectful manner, behind closed doors," he says. "Allow them to
take the news and figure out what they're going to do with it before they have to face their co-
workers."

After the companywide announcement at Summitville Tiles, the plant manager and human
resources director held individual meetings with each affected employee to discuss
unemployment benefits and COBRA health insurance. "We did our best to personalize
something that would otherwise have been impersonal and even traumatic," Johnson says.

2. Communicate openly
Rather than simply instructing folks to pack their things and leave, respectful employers explain
the reasons behind the layoffs. At Shuqualak Lumber in Shuqualak, Miss., owner Charlie
Thomas called a meeting of all employees and prepared a speech so he could remember
exactly what he wanted to say. But as he began telling employees that a layoff was unavoidable
due to the housing crisis, Thomas choked up and couldn't get the words out. "I felt so guilty for
having to lay them off; I felt like I had personally failed them," he says.

After retreating to his office to regain composure, Thomas returned to finish his announcement.
Sharing his decision process--and his emotions--with workers seemed to make the layoff a little
more bearable. "Employees knew that I had done everything in my power to keep us from
getting to the point of laying employees off," he says.

3. Allow for goodbyes

Standard layoff policy seems to require terminated workers to leave the building immediately,
but Canavan says that's often not necessary. "In most cases, we recommend that folks be
permitted a chance to say goodbye to coworkers," he says.

Keep in mind that terminated workers are recent employees, not second-class citizens. When
possible, it's even better to allow workers to transfer their responsibilities in an orderly way,
perhaps training others who will take over their former jobs.
4. Ease the transition
Small businesses may not have access to job placement services available through some larger
companies, but they can still ease workers' transition to other employment. Shuqualak Lumber,
for instance, worked with Mississippi's Rapid Response team, which immediately provided
resources to help laid off workers find jobs, register for unemployment benefits or return to
school.

By providing outplacement services, you're helping folks in your community and generating
goodwill with the people being let go and those remaining, Canavan says. "You're also lessening
the likelihood that a terminated employee will have issues against you that they'll want to turn
into litigation."

5. Remember remaining workers

With fewer employees, it's more important than ever to maintain productivity and keep your
company going. That's why you can't neglect the workers who are left behind--often with high
levels of anxiety about their own job security and new tasks they may be asked to undertake.
After the layoff at Shuqualak Lumber, productivity quickly declined. "We all worked harder than
we had ever before, but we were using employees that had to be trained to do new jobs and it
took some time for them to become familiar with their new responsibilities," Thomas says.

Ongoing communication with remaining employees can tamp down anxiety and rebuild
productivity. "The only thing [you] can do to ease anxiety among a workforce that has
experienced cutbacks is to keep everybody informed as to how the business is holding up,"
Johnson says. "The more information you share with employees, the better understanding they
will have of the situation, and the more supportive they will be."

Communicate clearly about job duties and expectations, especially if workers will be asked to
take on tasks previously handled by others. Also, talk about each employee's work and what led
to decisions about who to keep and who to let go. These discussions help people understand
what they can do to keep their jobs, Canavan says. And if there's a chance there will be future
layoffs, it's fair to let employees know you will continually evaluate the situation. "That's just
treating employees as an important part of the business and as responsible individuals who can
help move the company forward," Canavan says.