Mass layoffs are a difficult and often painful process for the employees and managers who must make tough decisions. While it is never easy to let go of employees. There are certain ways to handle mass layoffs that are considered appropriate and effective and others that are not.
The right way to handle mass layoffs includes:
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Being transparent and honest: It is essential to be transparent and honest with your employees about the reasons behind the layoffs. Employees deserve to know why their jobs are being eliminated, the company’s plan moving forward, and what they can expect regarding severance packages, benefits, and support.
- Treating employees with respect: During the layoff process, it is important to treat employees with respect and dignity. Be sensitive to their feelings and emotions, and make the process smooth and painless.
- Providing support: Mass layoffs can be a traumatic experience for employees. It is important to provide support to help them deal with the stress and anxiety of losing a job. This could include career counselling, job search assistance, and financial planning services.
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Communicating effectively: Communication is critical during the layoff process. Ensure that everyone involved, from employees to management, is on the same page and that there is a clear understanding of what is happening and what will happen next.
The wrong way to handle mass layoffs includes:
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Being vague or misleading: Being vague or misleading about the reasons behind the layoffs can cause confusion and mistrust among employees. Leading to further problems down the line.
- Treating employees poorly: Treating them poorly, such as belittling them or showing a lack of empathy. It can create resentment and ill will among the remaining staff.
- Failing to provide support: Failing to provide support to laid-off employees can be seen as insensitive and uncaring, leading to negative publicity and potential legal issues.
- Rushing the process: Without proper planning and consideration, the layoff process can lead to mistakes, oversights, and legal liabilities.
In conclusion, while mass layoffs are never easy, they can be handled respectfully and effectively, minimizing the time and the impact on everyone involved. By being transparent, respectful, supportive, and communicative, companies can help employees through layoffs and maintain their reputation as responsible employers.
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The Wrong Way to Do It
These employers are discovering that there is a proper way. To let go of so many employees at once, and one company is under investigation. Take, for example, Twitter.
The company recently faced legal ramifications from mass layoffs under Elon Musk’s management, including claims from some employees. That severance payments were less than promised, and other employees claimed that the company retaliated against them for exercising protected labour rights.
A Los Angeles attorney filed individual arbitration claims on behalf of three employees. Who claims the company had not committed to paying them the severance pay promised before Musk bought it.
Lisa Bloom, the employees’ lawyer, stated that she is prepared to file hundreds more such complaints on behalf of Twitter employees and contractors. Unlike lawsuits, which are filed and fought in public, arbitrations are conducted behind closed doors.
The company was also named in two National Labor Relations Board complaints. In one labour board case, Twitter is accused of firing an employee in retaliation for an unsuccessful strike attempt with other workers.
According to the complaint, the strike was scheduled for Nov. 17 but never took place because employees were discouraged by an email sent by Musk telling them they needed to be “extremely hardcore” if they wanted to keep their jobs.
How to do it in a legal way
The “lawful way” refers to following laws and regulations that are in place. To ensure you are legally doing something, you should:
- Research and understand the relevant laws and regulations: This could include federal, state, and local laws, as well as industry-specific regulations.
- Obtain any necessary permits or licenses: Depending on the nature of your activity. You may need a permit or license from the appropriate government agency.
- Comply with all rules and standards: This includes labour laws, environmental regulations, building codes, and any other standards that apply to your situation.
- Keep accurate records: This will help you to demonstrate compliance if you are ever audited or investigated.
- Stay informed: Laws and regulations can change. So staying informed and up-to-date on any changes that may impact you is important.
Consulting with a lawyer or other professional is always a good idea. Who can help you understand the specific laws and regulations that apply to your situation?
Growth on the horizon?
However, in one country, many employers believe the opposite is true, and the time has come to invest in the workforce rather than mass layoffs.
To a new report, CEOs across New Zealand are investing more in talent to drive long-term transformation amid inflation and macroeconomic volatility concerns.
How to PwC’s 26th annual Global CEO Survey included 142 New Zealand CEOs. 86% plan to invest in workforce upskilling in priority areas over the next 12 months.
According to PwC’s findings, 79% of local CEOs believe global economic growth will slow in the next 12 months. While 76% believe the country’s economic growth will also slow.
According to Mark Averill, CEO and senior partner at PwC New Zealand. This “increased pessimism” among New Zealand executives is “not surprising” given the challenges of recent years.
38% of respondents said they are extremely or highly exposed to inflation in the next 12 months. Followed by 26% who are exposed to macroeconomic volatility.
“When the survey was conducted late last year, interest rates and inflation rose. And there was widespread talk of a recession. “The findings demonstrate how important these issues are to CEOs,” said Averill.
