A Manager's Guide: How to Lay Off or Terminate Employees

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A Manager's Guide: How to Lay Off or Terminate Employees

  1. 1. THE WEBINAR WILL BE BEGINNING SHORTLY with HR Consultant Mike Harvey Thursday, June 2, 2011 from 12 pm to 12:30 pm EDT FOR AUDIO, YOU CAN USE EARPHONES OR YOUR COMPUTER SPEAKERS, OR YOU CAN DIAL IN TO THE TELECONFERENCE - TOLL-FREE: 1-877-669-3239 Event Number: 669 225 154 | Event Password: 1125 NEED HELP? WEBEX SUPPORT LINE: 1-866-863-3910 A Manager’s Guide: How to Lay Off or Terminate Employees
  2. 2. Outcomes from Today’s Webinar <ul><li>You will be aware of the implications of poor termination practices </li></ul><ul><li>You will gain insight into best practices for: </li></ul><ul><ul><li>Planning terminations and layoffs </li></ul></ul><ul><ul><li>Conducting terminations and layoffs </li></ul></ul><ul><ul><li>Managing post-termination considerations </li></ul></ul>
  3. 3. What are the Implications of Poor Termination Practices? Planning for Terminations/Layoffs Conducting Terminations/Layoffs Post Termination - What Next? Conclusions
  4. 4. What are the Implications of Poor Terminations Practices? <ul><li>Increased </li></ul><ul><ul><li>legal compliance issues and litigation (time and $) </li></ul></ul><ul><ul><li>Decreased </li></ul></ul><ul><ul><li>likeliness of sign-off on termination package (time and $) </li></ul></ul><ul><li>Negative impact on </li></ul><ul><ul><li>corporate brand (image, customer loyalty) </li></ul></ul><ul><ul><li>remaining employees (morale, productivity, engagement) </li></ul></ul>
  5. 5. What are the Implications of Poor Termination Practices? Planning for Terminations/Layoffs Conducting Terminations/Layoffs Post Termination - What Next? Conclusions
  6. 6. Consider All Options <ul><li>Are there other alternatives? (workforce planning, training, reduced work week, reassignment of duties, job sharing, other cost control) </li></ul><ul><li>If yes – move sooner rather than later </li></ul>
  7. 7. Meeting Location <ul><li>Confidential room on-site </li></ul><ul><li>Away from employee’s work area </li></ul><ul><li>Away from manager’s office </li></ul><ul><li>Additional or dual exit access </li></ul>
  8. 8. Meeting Time <ul><li>Earlier in the week is ideal (Tues/Wed) </li></ul><ul><li>Earlier in the day is ideal </li></ul><ul><li>Avoid employee birthday or anniversary date </li></ul><ul><li>Avoid significant holidays </li></ul>
  9. 9. Meeting Attendees <ul><li>Direct manager should deliver the message </li></ul><ul><li>HR or another manager to support the process is ideal </li></ul><ul><li>Leverage skills and experience of outplacement coaches </li></ul><ul><li>Define roles and scripts ahead of time </li></ul>
  10. 10. What Other Considerations Are There? <ul><li>Will security be an issue? </li></ul><ul><li>Will medical condition be a risk? </li></ul><ul><li>Create a termination checklist for network and software access, property, pass codes, voicemail, etc. </li></ul>
  11. 11. Your Meeting’s Positioning Statement <ul><li>Be honest – don’t set up the meeting under false pretences </li></ul><ul><li>“ Mark, I’d like to have a conversation with you about your performance. Can you come see me in the ABC room?” </li></ul><ul><li>Do not schedule meeting too far in advance </li></ul>
  12. 12. Prepare the Termination Letter <ul><li>Should be clear, concise, direct and cover the important details </li></ul><ul><li>Recognition of service and contributions can be added if applicable </li></ul><ul><li>Not required to include details/evidence of performance issues or steps taken unless for cause </li></ul><ul><li>Create a separate financial package </li></ul>
  13. 13. What are the Implications of Poor Termination Practices? Planning for Terminations/Layoffs Conducting Terminations/Layoffs Post Termination - What Next? Conclusions
  14. 14. Termination with Notice vs. Effective Immediately <ul><li>Depends on the situation </li></ul><ul><li>In most cases, will be effective immediately </li></ul>
  15. 15. Delivering the Termination Message <ul><li>Get right to the point </li></ul><ul><li>Reinforce decision is final – do not negotiate </li></ul><ul><li>Be brief, but respectful – 2 to 3 minutes </li></ul><ul><li>Keep the discussion in business terms </li></ul><ul><li>Move the conversation along to a discussion of next steps – this will take longer </li></ul>
  16. 16. Reactions to Prepare For <ul><li>Shock and denial </li></ul><ul><ul><li>Allow them time to react </li></ul></ul><ul><ul><li>Repeat the message if necessary </li></ul></ul><ul><ul><li>Probe gently to ensure they understand the message </li></ul></ul>
  17. 17. Reactions to Prepare For <ul><li>Anger and hostility </li></ul><ul><ul><li>Remain calm, keep it business </li></ul></ul><ul><ul><li>Do not argue, debate or take sides </li></ul></ul><ul><ul><li>Acknowledge their anger but bring discussion back to next steps </li></ul></ul><ul><li>“ You can schedule a time to discuss it at a later date with xxx/me. However, my purpose today is simply to communicate the decision, provide the package and introduce your career transition coach” </li></ul>
  18. 18. Reactions to Prepare For <ul><li>Negotiation </li></ul><ul><ul><li>Acknowledge their suggestion </li></ul></ul><ul><ul><li>Reinforce alternatives were considered but decision is final </li></ul></ul>
  19. 19. Reactions to Prepare For <ul><li>Relief and acceptance </li></ul><ul><ul><li>Probe gently to ensure they understand the message </li></ul></ul><ul><ul><li>Reinforce next steps </li></ul></ul><ul><ul><li>Inform outplacement coach and HR of “controlled” reaction </li></ul></ul>
  20. 20. Consider the Following “Best Practices” <ul><li>Never mention names of others affected or remaining </li></ul><ul><li>Escort the employee out of the building – they can connect with co-workers and clean up desk at a later date (if applicable) </li></ul><ul><li>Ensure the employee is capable of returning home – assess and offer alternatives if necessary – leverage outplacement coach </li></ul>
  21. 21. What are the Implications of Poor Termination Practices? Planning for Terminations/Layoffs Conducting Terminations/Layoffs Post Termination - What Next? Conclusions
  22. 22. After the Termination Meeting <ul><li>Deliver the message to remaining team members </li></ul><ul><ul><li>They may go through similar emotions </li></ul></ul><ul><ul><li>Reinforce decision and support employee(s) is receiving </li></ul></ul><ul><ul><li>Outline how work will be allocated/replaced </li></ul></ul><ul><ul><li>Outline how calls/emails/clients will be managed </li></ul></ul><ul><ul><li>Reinforce the importance of their jobs </li></ul></ul>
  23. 23. Consider the Following “Best Practices” <ul><li>Be visible and accessible to employees </li></ul><ul><li>Demonstrate objectivity and empathy </li></ul><ul><li>Utilize change management resources – HR, EAP, town hall/team meetings </li></ul><ul><li>Have more senior or other managers “check-in” with remaining employees </li></ul>
  24. 24. What are the Implications of Poor Termination Practices? Planning for Terminations/Layoffs Conducting Terminations/Layoffs Post Termination - What Next? Conclusions
  25. 25. Conclusions <ul><li>Planning for terminations and layoffs is critical </li></ul><ul><li>Every situation is different – be prepared </li></ul><ul><li>Nurture the “survivors” </li></ul><ul><li>Draw upon resources and experts to reduce your corporate and personal risks </li></ul>
  26. 26. Q & A
  27. 27. Mike Harvey HR Consultant Humanity in Motion [email_address] 1-416-216-1117 Heather Payne Sr. Marketing Coordinator Drake International [email_address] 1-416-216-1125 (direct) Drake International: Web: www.drakeintl.com Blog: www.drakepulse.com Facebook Page: /drakeinternational Twitter: @drakeintl Our Contact Information
  28. 28. Q & A
  29. 29. A Special Offer from Drake International Drake would like to offer you a complimentary 15 minute Terminations Coaching Phone Consultation with Mike Harvey.   To take advantage of this offer, contact: Phone: 1-416-216-1117 Email: drakesolutions@na.drakeintl.com
  30. 30. Mike Harvey HR Consultant Humanity in Motion [email_address] 1-416-216-1117 Heather Payne Sr. Marketing Coordinator Drake International [email_address] 1-416-216-1125 (direct) Drake International: Web: www.drakeintl.com Blog: www.drakepulse.com Facebook Page: /drakeinternational Twitter: @drakeintl Our Contact Information

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