CPEhr » downsizing http://www.cpehr.com/blog Your human resource partener Thu, 29 Jul 2010 22:45:40 +0000 en hourly 1 http://wordpress.org/?v=3.0 Layoffs in a Weak Economy – The Final Chapter: The Survivors http://www.cpehr.com/blog/layoffs-in-a-weak-economy-the-final-chapter-the-survivors.html http://www.cpehr.com/blog/layoffs-in-a-weak-economy-the-final-chapter-the-survivors.html#comments Thu, 04 Jun 2009 13:31:45 +0000 admin http://www.cpehr.com/blog/?p=39 So you considered the alternatives, researched the law, reviewed the employees to be let go, and you do it. Now what? More often than not, the remaining employees will most likely be responsible to pick up the workload left by their departing coworkers and it is likely that the morale of all the employees will be affected.

Don’t forget the human side of downsizing.

Employees are people too. Whether you intend on keeping, or firing an employee, treat them fairly and with respect. Recognize that layoffs affect all employees, not only those being let go, so show compassion in all your activities; it is likely to go a long way in shoring up the respect of your staff.

Bonuses and incentives.

Best practices encourage bonuses or recognition rewards to show your appreciation for your staff. In tough economic times this may not be feasible, but many inexpensive incentive programs exist. Be creative, think out of the box, and you and your remaining staff will enjoy a successful business relationship.

Remember – you are not alone.

While the process of downsizing can be painful for any size organization, know you are not alone. Unfortunately, our unemployment statistics tell us many employers are going through some level of layoffs as well. Some are confident to go through the process alone. However, many are not, and have reached out to professional HR firms to assist them through this difficult period. If you anticipate laying off staff, we  highly recommend contacting an HR Consulting or HR Outsourcing firm to help you. CPEhr has a team of experts ready to guide you. Be confident you are doing the right thing!

]]> http://www.cpehr.com/blog/layoffs-in-a-weak-economy-the-final-chapter-the-survivors.html/feed 0 Layoffs in a Weak Economy – Consideration #3 – The Selection Process http://www.cpehr.com/blog/layoffs-in-a-weak-economy-consideration-3-the-selection-process.html http://www.cpehr.com/blog/layoffs-in-a-weak-economy-consideration-3-the-selection-process.html#comments Wed, 03 Jun 2009 18:56:12 +0000 admin http://www.cpehr.com/blog/?p=24 Once you’ve determined you must let staff go, and you’ve researched all the relevant laws and guidelines, your next step is to determine WHO to layoff.

A specific selection process serves as a documented method of selecting employees that are laid off. A written documentation of the process will defend the organization against discrimination charges like American with Disabilities Act (ADA), Title VII, California’s Fair Employment and Housing Act (FEHA).

“Seniority and performance appraisals are common methods in selecting the employees that are laid off. Selecting a process and consistently applying it will help if faced with unlawful termination claims,” says Linda Robinson, CPEhr’s Training Manager.

]]> http://www.cpehr.com/blog/layoffs-in-a-weak-economy-consideration-3-the-selection-process.html/feed 0 Layoffs in a Weak Economy – Consideration #2 – The WARN Act http://www.cpehr.com/blog/layoffs-in-a-weak-economy-consideration-2-the-warn-act.html http://www.cpehr.com/blog/layoffs-in-a-weak-economy-consideration-2-the-warn-act.html#comments Wed, 03 Jun 2009 12:15:13 +0000 admin http://www.cpehr.com/blog/?p=14 Yesterday we discussed alternatives to laying off staff. If you have exhausted alternatives and are forced to downsize, be sure to educate yourself on the myriad of laws that can affect your termination decisions. One of the most important federal laws governing layoffs is WARN – the Worker Adjustment and Retraining Notification Act.

WARN applies to organizations with 100 or more full-time employees or 100 or more employees who regularly combined total of 4,000 hours (non) overtime in a week. WARN requires employers that fall under the act, to give employees, state and local officials a 60 days notice to mass layoffs or plant closures that are expected to last for at least six months. According to the law, mass layoffs are defined as a 33 percent reduction in the workforce or the layoff of 500 employees within a 30-day period.

WARN further requires employers of unionized employees to give the union 60 days’ notice when any of their members will be laid off. Nonunion employees must receive individual notice, which may be included with the employee’s paychecks or mailed to them. In addition, some states have laws similar to the WARN, those laws may have additional requirements.

Be sure to familiarize yourself with this important law. If you are concerned with your ability to remain compliant, consider the support of a Human Resources Consulting firm to help guide you and assist in maintaining your compliance.

]]> http://www.cpehr.com/blog/layoffs-in-a-weak-economy-consideration-2-the-warn-act.html/feed 0 Layoffs in a Weak Economy – Important Considerations before Downsizing http://www.cpehr.com/blog/layoffs-in-a-weak-economy-important-considerations-before-downsizing.html http://www.cpehr.com/blog/layoffs-in-a-weak-economy-important-considerations-before-downsizing.html#comments Tue, 02 Jun 2009 16:12:10 +0000 admin http://www.cpehr.com/blog/?p=3 California businesses received a glimmer of hope in these difficult times as the state unemployment rate FELL in April to 11%, down slightly from an all-time high of 11.2% in March. Despite this good news, layoffs continue at record pace, and employers must be well informed to avoid making termination mistakes. In our first post, we would like to highlight some key points employers must consider before downsizing.

Consideration #1 – Alternatives To Downsizing:
There may be other alternatives to saving money during a challenging economic time.  Consider the following:

  1. Freeze new hire positions, pay or bonuses
  2. Reduce salaries, fringe benefits, or 401 (k) matching
  3. Reduce work hours or adopt alternative work schedules
  4. Make selective, performance-based terminations
  5. Provide incentives for early retirement
  6. Telecommuting
  7. Job Sharing

These cost-cutting options will allow the organization the ability to retain talented employees who are familiar with the goals of the organization, while not being placed in the position to hiring and training brand new employees once the economy bounces back. If effectively communicated, employees will appreciate an organization that works diligently to look for alternatives to downsizing.

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