How to Cope with Negative Emotions that May Accompany an Employee Layoff - Example

Dismissal Meeting Number: Introduction When there is an economic crisis or a company’s business goes south, discharging employees is one of the strategies that many business organizations apply so as to chop their costs. It is not a very popular or an action that many business managements would feel proud of, because losing the workers that have been giving their best for the growth of the organization is not an easy decision to make (Valenti, 2013). However, at times it is the only available option especially if all the other cost-cutting techniques have miserably failed. This research paper is going to explore the process of lying off employees in a dismissal meeting, whereby the manager is required to ensure that the ‘bad news’ is delivered to the employees in a more lenient way that would not affect them psychologically. THREE WAYS THAT A MANAGER CAN COPE WITH ANY NEGATIVE EMOTIONS THAT MAY ACCOMPANY AN EMPLOYEE LAYOFF There are various methods that managers can employ to help in easing the pain of the employees who have become victims of retrenchment. Granting the laid off employees a handsome/generous compensation package is one of the most popular techniques applied by many employers. The package should at least offer economic benefits that reveal management’s empathy and deep understanding of the effects of job termination (Olsen, 2012). About 93% of the companies require workers to sign proclamations of liability so as to receive severance payment even though the trend is that companies provide less in severance compensation. Another very effective strategy of sharing the pain of the employees losing their jobs is to help them secure new jobs somewhere else. This may involve manager making calls to the manager’s friends who work in other corporates since managers have better contacts compared to their employees. Managers should also write great recommendations for the laid off employees and even lobby their competitors to pick the retrenched staffs if they have vacancies. However, this method may not work in case of a financial crisis that has hit all the industries. Moreover, companies should cover career counseling expenses that the employees may need, provide on-site training with regard to resume writing and how to ace an interview for the workers. This strategy can create loyalty even for the retrenched staffs (Olsen, 2012). Offering psychological counseling to the laid off employees is another effective strategy. The counseling expenses should be covered by the employer as a way of showing management’s compassion of job loss. Employment consultants argue that losing a job for some people is like losing a beloved one whereby one goes through various stages of grieving before he or she can fully heal (Valenti, 2013). Elisabeth Kubler-Ross, one of the most renown psychologists once stated that the recently laid off persons go through waves of emotions which ranges from shock, denial, anger, depression, bargaining and ultimately acceptance. According to most job counselors, the key to surviving a retrenchment is not grasping that emotions may shoot up, but most importantly knowing how to handle the situation. STEP-BY-STEP PROCESS OF CONDUCTING A DISMISSAL MEETING Conducting a dismissal meeting would involve the following major steps. Step 1 The first step would involve organizing a face to face meeting with the supervisor of the retrenched staffs being responsible since he or she understands better the reason for retrenchment and the criteria he or she used in deciding whom to lay off and who to continue serving. Discharging employees should never be done over the phone, via email or by letter. It is crucial that a third senior party is invited to witness the whole process so that the employees would not feel like they are unfairly treated. Step 2 The meeting should be held in a private place that is out of sight and a place where other workers cannot have access to or cannot hear the conversation. The employees to be laid off should also be called in a manner that will not attract the attention of the other staffs. Some counselors propose that it worthwhile to conduct the meeting in a public place so as to avoid emotional outbursts to both the supervisor and the employee. It also makes the situation easy since after the meeting, both parties just get up and walk in different ways Step 3 The best moment to hold a dismissal meeting is early in the week and early in the day since most people do not have much stress and the process should be held in a friendly way. Some unethical supervisors just confiscate all the materials that the employees had been given by the company such as van, laptop among others abruptly. It is also advisable to consider other emotional situations that the employee might be going through. It would be an extreme blow to abruptly retrench an employee who for instance is trying to recover from a chronic sickness or has just lost a beloved one. Discharging an employee by the start of the week and early in the day gives him or her with an opportunity to emphasize on the future and begin to look for a new job immediately if necessary. Discharging employees on Fridays and days just before a holiday is highly discouraged by consultants. Step 4 Dismissal meeting should not last for long or for a very short time. The average time recommended by many consultants is 10 to 15 minutes with supervisors being urged to provide a simple and concise proclamation for the decision of terminating the employment relationship. Supervisors/managers have to ensure that they have solid reasons for the discharge since if employees do not get adequate reasons for the termination may end up seeking further clarification by using other legal methods like suing the employer (Valenti, 2013). It is essential to uninterruptedly listen to the employee’s story though it is worth letting them know in a friendly way that the already made decision is final. Moreover, the supervisor should quickly go through the compensation package and ensure that the retrenched employee fully understands it. Finally, after the situation has cooled down, the supervisor can now collect the organization’s property such as keys, company’s car, cell phones, laptops, and company’s credit card among other items belonging to the organization (Armstrong & Armstrong, 2011). DETERMINING THE COMPENSATION THAT THE FICTITIOUS COMPANY MAY PROVIDE TO THE SEPARATED EMPLOYEE The employer should compensate the retrenched employee with an at least one week pay for all the years that he or she has worked in the corporate. Assuming the employee was making$1000 weekly and worked in the organization for 10 years, his or her compensation package can be broken down into two payments meaning that the employee would get $1000 after every two weeks that is; on 1st and on 15th of every month for a period of five months. CREATE A CHART THAT DEPICTS THE TIMELINE OF THE DISPBURSEMENT OF THE COMPENSATION Severance pay for the next 5 months 1st of the month 15th of the month January $1000 $1000 February $1000 $1000 March $1000 $1000 April $1000 $1000 May $1000 $1000 June $0 $0 July $0 $0 August $0 $0 September $0 $0 October $0 $0 November $0 $0 December $0 $0 THREE WAYS THAT THIS LAYOFF MAY AFFECT THE COMPANY A lay off can put the performance of the organization into jeopardy especially if it was conducted in an unprofessional manner. One of the most obvious effects of a retrenchment is psychological effect it has on the remaining employees. Many tend to feel like the type of employment they have been holding for a long time is no longer secure and that they can be fired any time (Armstrong & Armstrong, 2011). Communicating and making the remaining employees understand the whole process is important since doing so would kill the anxiety and reduce lack of commitment that employees regularly develop after a lay off. Managers/supervisors should manifest strong and effective leadership techniques that would boost morale of the remaining employees as quick as possible. Failure to do so may end up threatening the overall performance of the organization. Management should try its level best to identify and handle emotions of the staff effectively. This can be achieved by holding regular meetings with the employees and use all means possible to dispel any negative rumor that might be circulating among themselves. Management should also focus on setting short-term goals that are clear, realistic and attainable. Moreover, consultants recommend that managements recovering from this difficult situation should develop an open door policy that allows employees to present their concerns and questions to the management directly. Employees should also be updated in case of any change or expectations as well as ensure that they feel important and respected (Olsen, 2012). Loss of crucial talents is another detrimental effect of a lay off. The remaining employees may decide to quit immediately they get another safe job since they feel like the downsized company can unexpectedly discharge them. Many sources claim that the element of job security is highly valued by almost all employees, and that some people would be willing to take a less paying job than the ones they are having provided it is secure. Such an occurrence ends up stripping the organization off its human capital, institutional memory and critical skills and knowledge. At times, retrenchment destroys or disrupts the informal links of employees that were contributing significantly to the organization productivity (Stewart, Greg & Brown, 2012). Many organizations prefer retaining workers even during economic crisis especially if they rely that the cost of downsizing would be greater than the benefits they would gain by discharging some employees. Downsizing also leads to some positive effects with company restructuring being among the most positive elements that organizations enjoy. Restructuring can lead to a more flexible and performance oriented labor force whereby employees feel more recognized, valued and empowered. Restructuring also ensures that the downsizing organization would easily get excellent workforce once the economy revives. At times, organizations that haste to lay off staffs find it difficult to get effective employees who can make a difference in the market place particularly when economy recovers and organizations start looking for employees. Some business organizations experience unembellished public relation problems because of downsizing thus have often found themselves unpopular to the locals (Stewart, Greg & Brown, 2012). Companies that downsize in a responsible manner and conduct layoffs in a friendly and responsible manner on the other hand are rewarded handsomely by creation of a good public image that is an investment worth making in the 21st century. As a matter of fact, conducting a retrenchment when it is the only remaining option and doing it in a friendly way can be termed as to be socially responsible to the locals and the employees, an aspect that is highly emphasized on in corporate social responsibility (CSR). References Top of Form Armstrong, M., & Armstrong, M. (2011). Armstrongs handbook of strategic human resource management. London: Kogan Page. Olsen, Lindsay (2012). 3 Severance Pay Questions Every Employee Should Ask - US News. Retrieved May 17, 2014, from http://money.usnews.com/money/blogs/outside-voices-careers/2012/05/08/3-severance-pay-questions-every-employee-should-ask Stewart, Greg L., Brown, Kenneth G. (2012). Human Resource Management: Linking Strategy to Practice. (2nd edition). Hoboken, N.J., John Wiley & Sons, Inc. Valenti, Catherine (2013). How to Cope When Youve Been Laid Off - ABC News. Retrieved May 17, 2014, from http://abcnews.go.com/Business/story?id=87745 Read More