The best way to handle layoffs.

• Author: Lonergan, Deeta
• Position: HR Matters

One of the hardest things anyone can go through and that any organization has to do is to let go of people. It is called many things: "downsizing," "right-sizing," "streamlining," "layoffs," and so on, but in every case someone loses their job. It has profound effects on those being laid off, those who deliver the news, and even those that survive the layoff. Studies have shown that job loss can be a significant emotional event. Only ranked higher on stress scales are death of a spouse or child, divorce, imprisonment, coping with serious illness, extraordinary debt, and homelessness. It is startling that despite such wide ranging negative impacts, many organizations do this difficult task in such a poor way that the remaining negative effects become exponentially worse. There are better ways to handle layoffs.

According to the US Bureau of Labor Statistics, our most recent national recession has hit its peak. However, that does not mean that businesses, especially in Alaska, will begin to staff up. With our strong reliance on the oil and gas industry and low oil prices, cuts to related industries, education, and state and federal workforces are already being felt, and more reductions are on the way. It is crucial now, more than ever, for companies to create strategies to transition talent during down times, provide programs and opportunities for remaining employees to develop in order to retain them, and attract new talent when the economy rebounds.

Most organizations have core values that state how important their employees are. More and more studies support the link between values-driven organizations and long-term profitability. Yet when tough times come calling, many organizations throw what they said about valuing people out the window and just hand out pink slips. Layoffs need to be strategic and done with compassion or your company will be seen as heartless and will have a difficult time recruiting when the economy does rebound. How you treat people in tough times is the truest measure of what you really value.

Don't Wait Until the Last Minute

Let's face it--no one volunteers for the task of telling someone they are getting laid off. Managers often will postpone taking action because it's unpleasant until they have no other choice. The attitude and approach of managers is, "I am sorry, there is nothing we can do." The truth is usually that they saw it coming some time ago but avoided taking any action on it or preparing for it...