In challenging times, employers will have to lay off employees.
Grab employees who are laid off, according to Tech in Asia, will receive severance pay, as well as an enhanced separation payment; a waiver of annual cliffs for equity vesting; medical insurance coverage until the end of the year; encashment of unused annual leave and GrabFlex credits; and, for expecting parents, encashment of their parental benefits, as of the last day of employment.
Company layoffs are often due to reducing costs. However, some companies do this periodically in their business cycle, especially when they face with business headwinds. In this article, we have covered some of the best practices for employers to deal with layoffs.
LET PEOPLE KNOW WHY THEY ARE LAID OFF
Deciding how to notify employees about layoffs can be tricky. Employers might have tried everything to avoid unnecessary expenses and hesitated to tell employees about their being laid off.
Building a concise business case for the reason why you are letting them go is critical for successful transition in terms of communication. Furthermore, this process needs business leaders to engage with to fully support company employees in unison.
KNOW HOW IT FEELS WHEN FACING A LAYOFF
It’s okay for HR professionals to experience guilt, anxiety or embarrassment when facing a layoff. Being aware of these feelings and controlling them prior to the event might help you act empathetically towards both impacted and retained employees.
When It comes to communicate the layoff with impacted employees, it’s vital to express your appreciation for their effort and contribution instead of apologizing. Above all, even if you are likely to have a million things to take care of, truly listening and caring for employees’ feeling would never be a regret.
DELIVER LAYOFF NOTIFICATIONS CONSISTENTLY AND QUICKLY
When employees acknowledge that layoffs are possible, keeping all notifications short and sweet might help deliver a direct message and turn their attention back on the business work flow. In some cases, a consistent and quick notification can ease your employees’ concerns about whether or not they are retained.
Business leaders should also consider one-on-one meetings with impacted employees. This action would send an immediate signal that you are respecting them and their contribution to the company. Individual meetings would also help preserve your employer branding and reputation, which might directly benefit to acquiring and retaining top talent for the business.
AVOID LEGAL PROBLEMS
In order to avoid legal troubles, you should:
• Build a legitimate purpose for the layoff.
• Well control of written personnel policies.
• As a company policy can be established by both actions and statements, you should better review employee practices and actual policies at the same time.
• Make sure that the employment contracts allows you to lay off the employee for economic reasons and with or without severance.
• Review collective bargaining agreements whether or not there are any limits or rules on laying off workers.
CONSIDER OFFERING SEVERANCE
Offering severance although it is not included in employment contract would show how the company has valued employees’ contributions and cared about their welfare to not only laid off workers, but to retained ones and the general public.