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Topic : Corporate Layoffs
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Leadership Styles

 
Started by : Nikhil Jain, Senior Consultant, Hewitt Associates   11 07 2008 08:44:34 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Talent Management(People Management)
Activity:  70 views;  last activity : 07 06 2010 20:18:09 +0000

With an economic downturn, downsizing often follows and most of companies layoff employees. The government is asking the companies not to layoff. But the company still need to layoff, so how can a company layoff and avoid wrongful termination suits.

What should an employer do so has to have a valid reason and document it before approaching employees.

 
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1 2 3 4 5
1 Who should go ?
2 Plan and Educate
3 Support/Involve in other department as per choice.
4 Benefits for laid-off workers
5 Information you provide

Who should go ?

idea posted by Nikhil Jain Senior Consultant, Hewitt Associates

Who should leave is the difficult part to decide.Keeping this criteria as objective as possible by analyzing each employee group in your company and determining what makes a successful employee in that category.Check out their sales, production levels scores to find out the one who have to go.

 

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Layoff are  considered first in the non core areas of the company which do not fit the overall vision of the company.An Effort also should be made of to spin of profitable non-core areas of the companies asset as separate entities and sold off.  This will help retain talent in the new entity as well as ensure a longer career for the employees. From the non profit areas of the non core areas selection criteria need to be used to fill up vacancies and requirements in the core areas.

 

 

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Plan and Educate

idea posted by Vijay Bhaskar Consultant, CGI

It is often said that the most difficult challenge is to select the person who is to be laid off. I on the contrary disagree.
Selecting the person is the easiest one. The more difficult part is to tell them and guide them properly. Cause, it is the peeved employee who does more damage to the company that he/she is getting out of than any other aspect in the company.
Please note that lay off is just not the person, but the person’s family and friends. There are a lot of emotions involved here and that needs to be taken care off. So the entire activity is to be planned and everyone - including the targeted persons are to be educated.

Enough said. Instead of typing, I would recommend these links:
http://www.manager-tools.com/2005/10/compassionate-layoffs

http://www.manager-tools.com/forums-284

Feel free to explore other podcasts and links on the site.

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Support/Involve in other department as per choice.

idea posted by Rajeev K Jha India Head - Permits & Liaisoning

Excellent example: One of the major IT company in DELHI NCR region.They ask employee to work for 4 days instead of 5 days a week and pay them as per 4 days.Gradually,if person is not performing well thenafter asked to come 3days ,2days a weeks.Henceforth,making employee feel as non-performer or giveback appropriate result. This give tremendous help to employee rather getting sudden blow of NO JOB rather then SLOW out-of the Job.

There're multiple of Retail & Other companies coming up monthly list of Pink slip employee.As a result Entire day & night employee have nightmare.Do HR people still think of Training & making employee more job specific.

regards,

Rajeev jha

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Benefits for laid-off workers

idea posted by Rohit Khanna Project Leader/Managing Consultant, Accenture
What type of benefit do you recommend for a laid off workers, this depends on the company. Make sure the severance package your company offers are drafted properly.You should know whether you're going to pay benefits like accumulated vacation time in a lump sum, or staggered payments.
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Information you provide

idea posted by Rohit Khanna Project Leader/Managing Consultant, Accenture
I suggest you don't go too far into the details. Tell them you're providing job counseling, or a referral to a temp agency, if you can do that. Be honest, be consistent, and be objective. You want to conduct the meeting as respectfully as possible. Don't make false promises, and don't over-praise them or their performance.
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