Human resource issues can become major headaches
Some issues get too hard to handle alone
Human resource issues surface in basically two camps. The first is human resource management (both timekeeping and payroll routines and exceptions) and the second is human resource development (safety, performance, training, and efficiency). In down-turning economies such as the one we are experiencing in this decade, we do what we can with development, but our focus is turned toward the management of exceptions such as layoffs. Though there is little good coming from layoffs, there are still both good and bad ways of handling them. In order to remain objective sometimes management requires an outside viewpoint. That is a good place to engage an HR outsourcing firm such as CBR where professionals can help you focus on the best way to handle a difficult situation.
Employing Due Respect in Employee Lay-offs
When business slows, all employees become worried. There is really no occupation or position that is completely safe from the wrath of a down-turning economy—school teachers, corporate officers, law enforcement, even federal government workers can all testify to that. Employers have reason to worry, too. Employers invest a great deal in getting the best employees they can locate, training them to be efficient and productive, helping them gain experiences and they do not want to lose them. When the income is down, there is little else to do once all cost saving activities have been applied. You do have one choice remaining, though, and that is the method you choose to carry out the layoffs.
Be open and honest
Unless management is somehow entertained by what the rumor mill and grapevine can do to a company, the best way to keep greater human resource issues from developing is to pre-empt them with open discussions. In the movie, Office Space, the software company that is about to conduct layoffs brings in a consultant and introduces him to the staff but does not really tell the staff the reason he has been brought in. The rumors fly with vigor. Employees fly around like birds in a house spreading doom and gloom into every corner of the company. In the movie, it had comedic value. In real life a frenzy of such gossip is disastrous to the moral of the people. Later, a second advisor shows up but isn’t even introduced. They both immediately begin conducting two-on-one interviews asking each employee, “Tell me, what exactly do you do here” and then they drill every answer. That method had one outcome: it created new and worse human resource issues. It is a great example of what NOT to do.
Layoff those loyal employees with grace—they are your business family
In any family or healthy organization, we share good news when it happens. Considering that there is balance in all things, when a company is faced with bad news, it needs to be shared as well.
- Sit with your management team and explore alternative plans
Your management team is supposed to be your company’s problem solvers. Get all of them together and explore all the ways you might solve this problem.
- Gauge the extent of the necessary cutbacks
Don’t shoot from the hip here. Be careful not to overreact in any area. You are about to do serious surgery on the body of your company and you don’t want to remove more muscle than is absolutely necessary.
- Cut management salaries before releasing people
Treat the pain the company is experiencing and assess the extent of the problem before conducting the surgery. Part of the pain is from setting salaries the way you want them. Now, they have to be re-set to the way you need them to survive.
- Plan a meeting of full staff and present all indentified alternatives
Get out of the “closed door discussions” mode as quickly as you can. Your staff will sense when something is wrong. Plan a meeting, anticipating what you will be asked. Incorporate anticipated questions and pushback as part of your presentation. It reduces the pressure on all those involved and reduces hesitations in your responses. That would send the wrong message.
- Take questions and comments seriously
Your employees may have suggestions you have not yet thought of. Listen carefully and act upon the suggestions where you can. Don’t sell them short; you hired and trained those people to build your business.
- Get professional advice when you have gaps in what to do next
Decide whether your external HR professionals are within the employee view or if you should keep those relationships within management. That is going to depend on your employees’ previous relationship with them and other elements specific to your company’s personality.
There are no happy ways to handle layoffs, but there are respectful ways to handle people. Sometimes an external viewpoint can help management put first things first. Ask us for our advice and help.
CBR is staffed with experienced human resource professionals who have experienced all types of situations from both the employee and the management sides. Call us at our toll-free number, (888) 700-8512, and let us set a time where we can discuss your HR issues and how we might apply our resources to help you.
Let CBR be your human resources right arm.
For more information about how we can help you with your Human Resources and hiring processes, call us at 888-700-8512, request a proposal or contact us.
