This document provides guidance on conducting employee layoffs. It discusses downsizing criteria, restructuring objectives, key challenges, examples from Environment Canada and the Public Service Commission of Canada on their layoff processes. It also offers advice on conducting effective layoff meetings, showing genuine support to laid off employees, and bringing all aspects of a layoff together cohesively. The document concludes with case studies and questions.

1. Lay off me!
by Toronto Training and HR
April 2013

2. Contents
3-4 Introduction to Toronto Training and HR
5-6 Canada in recession
7-8 Downsizing
9-12 Restructuring
13-15 Key challenges
16-21 Environment Canada (example)
22-23 Drill
24-25 Organizational memory
26-27 Employment Standards Act 2000
28-29 Definition of merit
30-31 „Right fit‟ criteria
32-34 Exit interview questions
35-37 Conducting effective lay-off meetings
38-41 How to show genuine support
42-45 Public Service Commission of Canada
(example)
46-47 Bringing it all together
48 Case studies
49-50 Conclusion and questions
Page 2

3. Page 3
Introduction

4. Introduction to Toronto Training
and HR
• Toronto Training and HR is a specialist training and
human resources consultancy headed by Timothy
Holden
• 10 years in banking
• 10 years in training and human resources
• Freelance practitioner since 2006
• The core services provided by Toronto Training and HR
are:
• Training event design
• Training event delivery
• Reducing costs, saving time plus improving
employee engagement and morale
• Services for job seekers

5. Page 5
Canada in recession

6. Canada in recession
• Which workers were laid-off
during these recessions?
• How did layoff rates vary across
recessions?
• How did chances of finding
employment shortly after being
laid off evolve across recessions?
• Among workers who managed to
find paid employment shortly after
being laid-off, how do wages
before and after layoffs compare?
Page 6

7. Page 7
Downsizing

8. Downsizing
• Definition
• Criteria used by HR departments
• Push strategies
• Pull strategies
• Long-term employment alternatives
• Cost-saving strategies
Page 8

9. Page 9
Restructuring

10. Restructuring 1 of 3
OBJECTIVES
• Organizations must originate a key
plan to send to employees about
mutual training and practices
• Management must develop feelings
in employees that will enhance their
performance
• Reward packages need to be
motivational and inspire loyalty
• Salary survey needs to determine the
right basic salary
Page 10

11. Restructuring 2 of 3
OBJECTIVES
• Performance management must be
linked to organizational objectives
• Conduct training needs analysis
• Deliver professional training
• Provide feedback
Page 11

12. Restructuring 3 of 3
• Stage one
• Stage two
• Stage three
Page 12

13. Page 13
Key challenges

14. Key challenges 1 of 2
• Possibility of high attrition
• Possibility of other drop outs
• Possibility of increase in recruitment
cycle time
• Possibility of breach of physical
security
• Possibility of breach of date security
• Possibility of legal action
• Possibility of impact on existing
clients
Page 14

15. Key challenges 2 of 2
• Possibility of impact on re-hiring of
resources
• Possibility of negative publicity on
social media
Page 15

16. Page 16
Environment Canada

17. Environment Canada 1 of 5
PRINCIPLES
• Structure
• Consistent and frequent
communication is essential
• Fairness, transparency, access and
representativeness are central to
decision making
• Employees to be treated with dignity
and respect
• Objective is to maximize employment
opportunities for those wishing to
continue their career
• When possible, employees are
retained in their current branch

18. Environment Canada 2 of 5
SELECTION FOR RETENTION
• Guiding values apply
• Decisions must be recorded and
available
• Right of recourse applies
• Merit criteria is developed
• A variety of assessment tools
recommended
• Duty to accommodate persons
with disability applies
• Participants to be assessed in the
language of their choice, must be
given reasonable time to prepare,
must be advised of the selection
methods to be used and provided
with feedback

19. Environment Canada 3 of 5
SELECTION FOR RETENTION
• Determine the part of the
organization that is affected
• Identify the similar positions and
employees
• Determine the merit criteria
• Communicate decisions to employees
• Assessment and selection
• Communicate results
• Confirm qualified employees
Page 19

20. Environment Canada 4 of 5
SELECTION TOOLS AND METHODS
• Formal interview
• Reference checks
• Performance evaluations
• Written exam
• Personal knowledge
• Test
Page 20

21. Environment Canada 5 of 5
AREAS OF ADJUSTMENT
• Organizational boundaries
• Geographic boundaries
• Occupational boundaries
• Functional boundaries
Page 21

22. Page 22
Drill

23. Page 23
Drill

24. Page 24
Organizational memory

25. Organizational memory
• Definition
• Collective and individual
• Storage bins
• Procedural and declarative
• Survivor reactions
• Impact and contribution of IT
• IT-powered process reform
Page 25

26. Page 26
Employment Standards
Act 2000

27. Employment Standards Act 2000
• 50-199 employees
• 200-499 employees
• 500 or more employees
• Exceptions
Page 27

28. Page 28
Definition of merit

29. Definition of merit
• Essential qualifications
• Current of future asset qualifications
• Operational requirements
• Organizational needs

30. Page 30
‘Right fit’ criteria

31. „Right fit‟ criteria
• Similar or identical positions within
the department or unit
• Specific to each position based on
the requirements of the position as
the emphasis in some positions
may not be exactly the same as in
others
• Each position based on the current
and future requirements of the
department or unit
Page 31

32. Page 32
Exit interview questions

33. Exit interview questions 1 of 2
• Employees were treated with dignity
• Employees were treated fairly
• Employee complaints were
addressed
• Organization is sensitive to employee
needs
• Organization‟s effort for
outplacement
Page 33

34. Exit interview questions 2 of 2
• Will you rejoin the organization?
• Will you recommend the organization
to your friends?
• Would you describe the work
environment of the organization as
positive?
Page 34

35. Page 35
Conducting effective lay-
off meetings

36. Conducting effective lay-off
meetings 1 of 2
• Don‟t dwell on how painful the lay-
off is for you, for it is not about you
• Acknowledge and recognize all of the
positive contributions of the
employee
• Give the employee the essential
information in writing as well as
orally
• Repeat and reinforce the information
until you are sure that the employee
“gets it”
• Allow time for the message to “soak
in

37. Conducting effective lay-off
meetings 2 of 2
• Have a witness
• Retrieve what you need to get back
from the employee (e.g., keys, tools,
laptops, ID badge, etc.)—but leave
the employee‟s dignity intact
• Have paper tissues available
• Insist that the conference become a
“no interruption” zone
• Be sure that security personnel are
readily available if you anticipate a
volatile reaction
• Physically escort the employee off
the premises only as a last resort

38. Page 38
How to show genuine
support

39. How to show genuine support
1 of 3
• Provide “power” references/
recommendations for employees who
deserve it
• Use your own personal network to
locate possible job-openings for
workers you‟ve had to lay-off
• Provide on-site career advice and
training sessions on job-hunting,
resume writing, interviewing skills,
social media profiles, etc. and
include family members when
appropriate
Page 39

40. How to show genuine support
2 of 3
• Connect your laid-off workers with
municipality, province, federal and
not for profit bodies who can help
• Assist individuals laid off to complete
the necessary tax and benefits forms
• Provide downsized personnel access
to office space (and clerical help
where possible) for job-hunting
• Facilitate formation of support
groups for laid-off personnel and
their families
Page 40

41. How to show genuine support
3 of 3
• Keep in touch by letting downsized
workers know that you care about
their future
• Aiding downsized workers boosts the
morale of those laid off and those
who stayed on the job.
• Continuing to care for and relate to
individuals even after they‟ve been
let go is a prime example of “servant
leadership”
Page 41

42. Page 42
Public Service Commission
of Canada

43. Public Service Commission of
Canada 1 of 3
• Workforce reduction, with unique
position to be eliminated
• Workforce reduction, with all similar
positions to be eliminated
• Workforce reduction, with all
positions to be eliminated and new
positions to be created, and with
new merit criteria
• Workforce reduction with no
significant change to the duties, but
with changes to the merit criteria
Page 43

44. Public Service Commission of
Canada 2 of 3
PROCESS TO SELECT EXECUTIVES
• Determine the part of the
organization that is affected
• Identify the similar affected positions
and executives
• Determine the selection strategy
• Review the merit criteria and
determine the selection criteria
• Determine the assessment methods
to be used and assess the affected
executives
Page 44

45. Public Service Commission of
Canada 3 of 3
PROCESS TO SELECT EXECUTIVES
• Determine which executives are to
be retained and which are to be laid
off
• Communicate results to employees
Page 45

46. Page 46
Bringing it all together

47. Bringing it all together
• Leadership must be aligned and have
a mid- to long-term strategic view of
the organization
• Internal and external communication
• Departing employees need to be
supported in their transition with
dignity and respect
• Star performers need to be
identified, involved and retained
• Remaining employees need to be
engaged in and aligned with the new
organization‟s vision
Page 47

48. Page 48
Case studies

49. Page 49
Conclusion and questions

50. Page 50
Conclusion and questions
• Summary
• Videos
• Questions