The Essential Guide to Handling a Layoff Table of Contents

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Tools, tips, and templates to ensure a smooth transition The Essential Guide to Handling a Layoff Table of Contents

Section One: How to Select Who to Layoff 05

Employee Layoff Selection Guide

Multi–Criteria Layoff Selection Guide

Section Two: Worker Adjustment & Retraining Notification 14 Checklist

Sample Letter

Section Three: How to Layoff an Employee 18 Reduction Checklist

Layoff Script

Layoff Letter / Layoff Memo / Layoff Form

Severance Pay Policy / Severance Calculator

Offboarding Checklist

Exit Interview Questionnaire CAREERMINDS.COM 3

More reasons soon-to-be-former to do right by employees to people for natural It’s only a layoff. in can run high emotions Employees’ or family, their feed mortgage, their pay to going stress they’re how about towards will instances,worriesill In some can those fuel job. another find to vulnerable a company a layoff can leave And mishandling employer. their legal action from disgruntled former employees. Making the hard choices the of one is go people let to having HR professionals, and managers For most difficult necessarythat it’s a it’s when clear parts even job, of the a layoff not is directly decision, that impacted by employees And for step. loyal when difficult,devastating,only be especially but initially it also can decision a company’s to due go let be to have productive employees and to likely also is force A reduction in viable. remain to order in downsize to job. the on remain affect who employees the of morale the make that ways in them do to layoffs as itAs possible is can tough be, the laid-off illustrate for that — ways employees everyone on easier things leave also that ways people; as them cares about fact company the that been a layoff has way the by reassured feeling employees remaining handled.

That’s why this ebook has been created. been has ebook this why That’s confidence and confidence care Careful planning and preparation to are successfully key managing a layoff. little leave a busy workplace of demands often,But too day-to-day the an allow that materials and opportunity information the place put in to a layoff can bring. turmoil — the involved everyone — for ease to employer How to handle a layoff with with a layoff handle to How CAREERMINDS.COM 4 Susan Heathfield, HR Consultant “Employees and former employees may not remember why you you why remember not may employees former and “Employees were they how remember will layoffs, do to they forced but were – treated.” Secrets to a smooth transition The pages that offer follow essential information customizable — including a for order in provide and say, do, to need you what — covering templates smoothly. go layoff to THE FIRST SECTION – Conducting and Initiating in Steps “Key Lay (or Off“How to Employee” an a Layoff”— checklists, includes scripts, the letters, cover that forms and setting of motion. a layoff in how-to’s fundamental THE SECTION SECOND – Select“How to Lay Off” to Who typically methods the in — outlines used fact-based criteria multiple use to to selection illustrates how and process appropriately rank employees. THE THIRD SECTION – and Adjustment Worker the whether a checklist determine to Provides a Sample features It also company. your to applies Act (WARN) Retraining Act, WARN the offering by employees’ to answers required Letter, its layoff the and about questions ramifications. this one, have to comes time the when But if and easy. Layoffs never are guide can it make easier. CAREERMINDS.COM 5 e on n o

Layoffs far-reaching have implications for a company and its employees. in- honest an and requires force a reduction in have to decision And the depth evaluation of the potential pluses and minuses involved in taking facts at the look possible and a clear-eyed both It step. demands that a certain soul-searching. as of well as amount alternatives, also with it both, help only sectionnot in this will find you’ll information The effective of communicate to ways examples useful empathetic and provides forward with a layoff. move to decision a company’s impactedto employees of policies and section fitneeds this to the in can be adapted examples The your company. Key Steps in Steps Initiating and Key Conductinga Layoff i ct se CAREERMINDS.COM 6 What outcome do you want to achieve? (What problem?) the is achieve? to want you do outcome What Are there alternatives? (Furloughs, temporary layoffs, etc.) this? like event an hold to time right the Is this (Locations, move? the be impacted by will positions What departments, teams, etc.) What will this achieve? outbound your (Give narrative? public the control you do How theemployees red carpet treatment, retained help employees etc.) guilt, survivor their with withCreate managers, your team. Talk executives, accountants, identify to cuts cuts those etc., what where and can will be made achieve. cutsGet a better be made. many to need how of understanding etc.). teams, (locations, cuts these happen Where will a action. hold of courses Can other you are if there Re-examine voluntary RIF? Voluntary retirement? Any reductions that can be done voluntarily should be thoroughly inspected. hits plan all your sure make to budget out your lay Completely point track. no gets is on back and There you places proper the it’s over. when weeds the in be to still going are RIFa if you holding Create an initial timeline. for team legal your to sent is that everythingPut a document into state, federal and local, all following are you sure make to review laws. One: Goal Setting,One: Analysis • • • • • • a Plan Make Two: • • • • • • • Sample Reduction Checklist Force in company. RIF checklist at your use own for your points make to bullet these Use CAREERMINDS.COM 7 Establish criteria. You can use this guide to help. to guide can this use Establish You criteria. process. this through go to a team Create it thoroughly. reviews team your sure Make event. a list the for Create legal your to you talk sure list.Start the Make after process the finalizing throughoutteam the process. Act WARN issues. Review to Acthow and WARN notices about more learn (To notices. Prepare - 21. 19 see pages them, send attention special to Pay agreements. severance explore and Create employees who are in protected groups. (Layoff letters, materials. letters, notification communication all Create memos, etc.) staffEstablish for prepare a way Also, with meet to you. members following the in more Learn notify to go. let times meeting being those RIF a layoff meeting. or hold to how about pages Actuallyhold the meeting(s). survivors to after communication event. the provide and meetings Hold Three: Layoff,Three: RIF Selection • • • • • • Outplacement, Etc. Severance, Four: • • • • • CAREERMINDS.COM 8

The Beginning, ExplainingThe Beginning, the Reason The reason for the layoff should be delivered by the Manager. Get Manager. the by be delivered layoff the should for reason The any one no doing but you’re can abrupt, feel This straight point. the to meeting. the during talk small Avoid issue. the around circling by favors example, For and reason. state the immediately notification the Get to overall our adjusting is August, division the late in announced “As specialty for demand costs weakening the operating to response in staffing reducing number productsresult, a a As includes levels. this and one is position your and eliminated facility at this being positions of are affected.” being The Listening Middle, for Reactions the for reason the and decision the communicating are you While the listen to and for wait to time the it critical take is you that decision, reactions those and to respond to and employee(s) the reactions of listen and to just want You interrupt. Don’t appropriately. questions off a load take to have might They vent. employee the let sometimes as soon as meeting the get out of to want chest, might their they or step in HR will point, some At exchange. to words with few possible and agreement severance the reviewing to meeting the transition and outplacement services being offered. The Presenting Middle, the Agreement Severance and Outplacement Services agreement severance points the of high the mostIn review cases, HR will good Any services offered employee. the to outplacement being and severance include agreement outplacement will to the help employee transition.

1. 2. 3. Simple Script for a RIF Layoff or Notification Meeting CAREERMINDS.COM 9

A typical script for this section is: “We’ve prepared a severance a severance prepared A typical section this “We’ve script for is: benefits the being explain will which review, to you for agreement last Your agreement.) points the of key the (Review you. extended to be ______will at work physically day last Your (insert date). ______be will employment of day 45 have You (insert date). severance the sign to choose If you sign. to want if you decide to days a period for absence of leave a paid on be placed will you agreement, _____of After days. ____ the pay severance receive will you days, of years your on based schedule severance company the to according begin assistance will that outplacement for eligible also are service. You severance the for be done will tax Normal withholding immediately. recommend state and We with federal laws. compliance ensure to pay it as a legal is with attorney signing, an before agreement the share you document.” particular your that program outplacement the review also should You outplacement provider offers. This again reiterate will that you are benefits important. is other which Review transition, them helping 401K, medical, be paid, will severance when as such apply, may that etc. stock options, pensions, ofThe End, Work Transition understand to back what discussion the take will manager the Here be made usually should Plans of. be aware critical is to need work they unfinished any as well as workload, current employee’s the complete to with respect, the employee treat If you they in. projects involved are they work the of all courtesy the sure you turn making give in of usually will smoothly. transition will The End, Exit from Human Resources company other any and keys, company collect badge, their time, this At process the review Also, time. at with this property them have may they the let to not property. It personal recommended is of removal for having desk, but if consider it necessary, their is to back walk employee you what allow should supervisor the HR or escort back. You them large- be respectful For would culture. feel part as company your of help to site on outplacement EAP and/or having scale layoffs, consider support emotions and career transition questions. Outplacement reps answer help support, as well often as with emotional the can help time questions related to career transition. a RIF script for simple but this hold, to easy meeting an never is This and smooth a for you prepare should meeting layoff notification or professional delivery.

4. 5. CAREERMINDS.COM 10 Dear Name], [Employee has Name] [Organization months, last the several For changes difficulties economic to due financial experienced action to taken have past the In we industry. years our within product processes. with and new market new this to adapt increased in action resulted this not has Unfortunately, profitability. eliminate to decision the to come have we climate, this to Due It with is deepest the regret organization. the within positions the from eliminated being I mustthat position notify your of you organization. a set up to you call will Resources Human from Someone the and process discuss this to days coming the in meeting discuss with you will HR The representative implications. overall an benefits. of use the separation benefitsThese include your position new service a assistanceoutplacement for finding in resumethrough writing and career counseling services. Please to relation in questions any HR representative this ask free to feel the position elimination. your during done have you work good the all appreciate We employment. Regards, Name] [Executive Whether the layoff impacts an individual, a few, or many, this message this many, or a few, layoff the impactsWhether individual, an memo. email or form, letter, via news offers that confirm to way a Sample Letter / Memo / Form CAREERMINDS.COM 11 Qualifying Events: receive to reduction qualify events employee an following The policy: this listed in pay severance the downsizing, Layoffs, elimination, position RIFs, Voluntary RIFs, etc. The events following do not qualify: relocation or assignment of Refusal Eligibility: policy pertainsThis all to contract, exempt, etc.] non-exempt, part-time, [full-time, employees. will part-time workers example, For contingencies. [Insert any only receive a prorated amount.] [Company Name] Severance Pay Policy Pay Severance Name] [Company Use these examples as templates that can be adapted to reflect the policies reflect to can policies that the be adapted templates as examples these Use of your company. Severance Pay Policy Pay Severance CAREERMINDS.COM 12 4 4 8 24 12 16 20 24 $75k #VALUE! Severance In Pay Weeks Employee’s Annual Salary: Annual Employee’s Time With Company In Years: Severance In Pay Weeks: Pay: Severance Total SEVERANCE PAYOUT SCHEME SEVERANCE PAYOUT Time With Company Less then a year 1–5 years 6–10 years 11–15 years 16–20 years 20+ years Vacation: termination of date at the vacation days unused accrued and All employee. the to full out in be paid will Commission: employee’s the to up leading earned commissions All commission is pay If your full. out in be paid will termination pay weekly average be your will payout severance your based, from your tenure at the organization. Payment: The chart following details the amount severance will employees receive based on their tenure at the organization. CAREERMINDS.COM 13 Set up a knowledge-transfer plan specific knowledge any transfer to need over will employee leaving Your member. team another or successor their to work their about transfer knowledge complicated more the to referring are we While simple mean project, also a specific we about skills and details of external vendors, of numbers phone example, For transfer. knowledge for cabinets,keys etc. Return property company Cellphones Laptop Specialized equipment Company car Company credit card Etc. Update internal systems have IT systems, from if you etc. security, Also, employee your Remove as that update hosts to that intranet chart, sure org the a company make system. payroll in the payments final Complete well. Conduct fillexit out an employee an exit interview, or have questionnaire with issues leaving, for motivations Ask employee’s the about questions etc. position, their Send out communications to appropriate people notifying them of departurethe person’s peers, direct reports, coworkers, any and person’s the can include This be made should that organization the to external stakeholders other aware.

2. 3. • • • • • • 4. 5. The following outlines the final steps in the layoff process, including those those including layoff process, in the steps final the outlines following The company return of the and transfer the knowledge in of role play that property. 1. Offboarding Checklist CAREERMINDS.COM 14 two John Gerzema, Harris CEO, n o

Insights and Analytics “Transparency, honesty, kindness,“Transparency, good stewardship, even work in businesses humor, at all times.” After determining that a layoff is, in fact, unavoidable, the question of question of the fact, a layoff in that is, After unavoidable, determining And that because selection the for off framework lay large. to who looms lawsuits, it’s risk of the important to take to employers can expose decision affect adversely not do in made choices the that employees steps ensure to disability. or gender, age, protected race, as such categories, more or one are criteria that establishing by is this accomplish to way mostThe reliable to need legitimate company’s the to correspond and measurable, objective, aimplement reduction in force. typically at the a lay-off bottom-line drive considerations Though decision, with respect and employees Treating people. about it’s really day the of end a difficulteasier making situation towards way a long goes kindness simple weren’t because they not go let being they’re that know people Let bear. to but appreciated, been hasn’t work hard because their not employees, good left choice. finances other no becauserather company’s the a strategyregarding formulating to one-size-fits-all no is approach There sectionin this are find you’ll guides the off. However, be laid will who best that serves company approach at arrive an your you help to designed employees. and your How to Select Who to Lay Off Lay to Select Who to How i ct se CAREERMINDS.COM 15 Create a weighted formula that puts emphasis on different on criteria puts most that emphasis formula a weighted Create Lay off employees based on shortest tenure at your organization. shortest on based at your Lay off tenure employees status. worker contingent part-timeor their on based Lay off employees Lay off poorest performing employees. your and most with impactful skills organization, employees your Retain to Difficult to achieve the amount of cross-department collaboration to pull this off. this pull to of cross-department amount the collaboration Difficultachieve to Overly simplistic, doesn’t help avoid other types other discrimination. of avoid help doesn’t Overly simplistic, an account into take with doesn’t be used to a different need method, May and liability legal to can lead which canbe subjective, reviews Performance Easy, helps Easy, ageavoid discrimination. better help Easy, brand. employer your manage performance have performers, poor if you of get rid execute Helps easy to Help keep talent in areas that are helping to improve your organization’s organization’s your improve to helping are that areas in talent keep Help reflect to this the customize factors to most be able are that will You Pros: Cons: STATUS-BASED SELECTIONMETHOD EMPLOYEE #2: Definition: Pros: Cons: workers. contingent on reliance organization’s MERIT-BASEDMETHOD SELECTION #3: Definition: Pros: reviews. Cons: importance the different of account departments. into take doesn’t METHODSKILLS-BASED #4: SELECTION Definition: MULTIPLE-CRITERIAMETHOD RANKING #5: Definition: METHOD #1: SENIORITY-BASED SELECTION METHOD #1: Definition: category. this in not layoff those Pros: bottom line. Cons: poorly. rank who off lay then employees important organization your to Pros: important to your organization. Cons:musttested exhaustively Itand against can be be difficultup, to set discrimination laws. Employee LayoffEmployee Selection Guide CAREERMINDS.COM 16

STEP #4: HAVE YOUR HR ANALYST CREATE THIS FORMULA CREATE YOU HR ANALYST FOR YOUR STEP HAVE #4: AND LEGAL COUNSEL TEST ANALYST YOUR THIS HAVE STEP #5: LIABILITY DISCRIMINATION FOR MODEL STEP #3: ASSIGNSTEP WEIGHTS #3: DIFFERENT TO BASED FACTORS ON IMPORTANCE Example: = 0.5 Tenure Certifications = 2 Promotability = 1 Performance Reviews = 3 STEP #1: SELECT RANKING YOUR STEP #1: FACTORS performance certifications,promotability, at company, tenure Example: reviews A SCALESTEP CREATE EACH FACTOR FOR #2: Example: (1-5) Tenure 3 years: 10+ 2 1 6-9 years: years: 0 1-5 year: <1 How to Use Multiple-CriteriaHow Ranking to LayOff Employees CAREERMINDS.COM 17 TOTAL: 7 TOTAL: 19 TOTAL: 28 10 years of employment (3) 6 certifications (12) 4 good performance reviews (12) Promotability (1) 10 years of employment (3) 5 certifications (10) 2 good performance reviews (6) 2 years of employment (1) 2 years of employment 1 certification (2) review (3) 1 good performance Promotability (1) • • • • • • • • • • • STEVE LISA TINA STEP #7: SORT YOUR EMPLOYEES BY LOWEST HIGHEST TO BY EMPLOYEES SORT YOUR SCORE STEP #7: STEP SELECT #8: EMPLOYEES your reach you until go be let to select employees order, ascending In salary. employee’s each of sum total on the based goal financial STEP #6: SCORE YOUR EMPLOYEES USINGEMPLOYEES THE MODEL YOUR YOU’VE SCORE STEP #6: DEVELOPED Example: Tina= 7 Lisa= 28 Steve= 19 CAREERMINDS.COM 18 three n o

Passed by Congress in 1988, the WARN ACT is a law that protectsthat a law is ACT WARN the 1988, in Congress by Passed employees, their families, andcommunities by requiring employers in closings plant of notification 60-daycertain advance provide to situations and mass layoffs. adjust to time families their and workers gives only not notice advanced This to them impact, itsallows loss and also it job financial impending their to programs retraining enter if necessary, and, future employment, for look job. a new be successful to landing them in enable will that But every Act to workplace. apply WARN the don’t of provisions The your of sake the for only not – know to want you’ll yours, to if it applies penalties and fines the from company protectto but your also employees, Act’sWARN the mandates. violating from canthe result Worker Adjustment and Retraining Retraining and Adjustment Worker Notification i ct se CAREERMINDS.COM 19 I provided ALL affected withI provided their 60-days of notice employees position being laid off. My reduction in force is a plant closing (if one or more facilities or or facilities more or one (if closing a plant is My force reduction in that a shutdown location anticipate units a given operating in days) 30 affect AND than last more will workers 50 than more a 30 layoffs of a series over a mass layoff is (if My force reduction in if a or employees, more 500 or loss of the in result will period day a 30- over 500 employees lessor than 50 than layoffs of series more of workforce) the of 1/3rd a loss of in result will period day (not-for- company publicly-traded or a privately is My organization count) both for-profit, or profit My organization has 100 or more full-time employees. full-time more or 100 has My organization

consult with your corporate counsel before using our checklist. our using Always before counsel corporate with your consult you entered “yes” above, the WARN Act applies to your organization. your Act to WARN the applies above, “yes” entered If you NOTICE PROVIDE STEP #3: your to a notice provide to required are you above, “yes” answered If you Notice with Warn the complied have you once below box the Check employees. regulations: If you entered “yes” above, the WARN Act applies to your organization. your Act to WARN the applies above, “yes” entered If you EMPLOYEES? NEED GIVESTEP YOUR NOTICE TO TO YOU DO A WARN #2: you: to apply that following the of next any to “yes” Write STEP #1: DOES THE WARN ACT APPLY TO MY TO ORGANIZATION? DOES ACT APPLY THE WARN STEP #1: you: to apply that following the of next any to “yes” Write WARN ActWARN Checklist CAREERMINDS.COM 20 In this section you will need to go over the specific logistics specific the over go to need section this In will you If go. be let will employee an where and how, when, of try on in zero to information, this about sure for aren’t you will This dates. of a range as such quantitative, something are if they search job their for prepare employees your help if finances out their figure off, and laid permanently being off. laid be temporarily will they Insert information about whether the reduction will be reduction the will whether Insert about information off laid and be temporarily will if employees or permanent, make groups, both in employees have If you recalled. then be impacted. will who explain to sure

2. Date:______Date:______[insertresults, company financial businesses our As of a result to like would We force. a reduction in be having will name] off upcoming be laid this to in likely are you that you inform company reorganization. This noticeis in compliance with the Act. Notification (WARN) Retraining and Adjustment Worker The information below with should you provide help answers to force reduction in upcoming the about have may you questions and company reorganization. 1. To:______To:______Position Employee Name of WARN LetterWARN Sample CAREERMINDS.COM 21 Insert information about bumping rights. Several rights. Several bumping Insert about information organizations policies have around bumping rights. Bumping off level bump to a lower employee an of right the rights are a reduction in organization at an job a keep to employee off line lay to your going are if you example, For force. in a job keep to employee out a line bump could he manager, position lower the in be to have He would organization. at the So, a position. still have would but he pay, lower receive and rights bumping what describe to sure section, this make in and they how should execute have employees your them. offers organization benefitsyour List severance what different be based probably benefits The will employees. off laid or temporarily being are employees if your on permanently let Employees go. that arebeing temporarily their of continuation the about off information need laid will laid permanently off benefits,while financial and health and pay severance about information need will employees outplacement services. Include the contact information of someone in Human Resources at your organization to answer questions any that letter. WARN this about have might employees your

3. 4. 5. Let Laid–Off Employees Know You Care.

By providing access to Careermind’s proven outplacement services, you’ll help laid-off employees feel positive about their future and your company.

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