Working at Home—Small Firms Must Master the Softer Side of Layoffs

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Every few days or so I receive calls from people who are looking for work. Some of them are freelance writers and project people; others are in business development. This availability of resources means that layoffs are continuing and are likely to hit more home-based businesses than at any other time in recent history.

During the boom of the last several years, many people running home-based businesses hired staff and expanded. Either by choice, or because time didn’t permit physical expansion, these businesses stayed home-based and staff came to the home offices or worked remotely. For most of these home-based business owners, this current downturn may represent the first time they have dealt with layoffs.

If you’re laying off people for the first time, you can find advice on the legal details by talking to your attorney and researching online. I recommend researching rules regarding benefits continuation, severance pay and other details to avoid legal trouble.

The other side of layoffs how to manage the softer side of the process is discussed less frequently. Unfortunately, I have had to let people go over the years for a variety of reasons and, with the help of my staff, have built up some practices that I use to ease the pain on both sides.

Use these tips if you are facing layoffs.

-Get right to the point. When you are letting someone go, be direct. Some people mistakenly take a long time to wind around to the fact that they have to terminate someone. This is probably because they want to put off the moment when they say, “I have to let you go.”

But taking the long way around doesn’t do anyone any favors. The person on the receiving end usually knows what’s coming and wishes the employer would get it over with. To avoid this tendency, start the conversation with the fact that you have to lay the person off and then fill in the details of why, as well as timing and compensation.

-Lay everyone off at once. When possible, let everyone go in one fell swoop. Although there is more temporary pain when multiple people go, it is worse to gradually cut away at staff, leaving other employees wondering who is next.

-Let people know you would hire them back. If layoffs are economically motivated, you can lessen the blow by letting people know that you would hire them back if things turn around. This statement is not a commitment to do so, but it is a way of communicating to people that you regret having to terminate them and genuinely would like to join forces again.

-Ask them to stay for a little while to finish up projects. Layoffs do not require the immediate departure of employees unless you are concerned about security. If finances permit, ask employees to stay on to finish outstanding work.

Most people will appreciate a few extra days of income. Before making this decision, consider the personality of the people you are letting go. If you have any reason to suspect they will do damage to your business, it’s better to make a clean break.

-Consider part-time work. Some companies cut back on the number of hours worked per week or month, as a means of keeping valued employees.

-Notify other employees promptly. After layoffs are complete, speak to any remaining employees about the actions you have taken, why they were necessary, and your plans for turning the company around.

-Provide support. Give out the name of recruiters and offer to review resumes and even make calls to potential employers for your most valued former staff. Any leg up you can provide will mean a lot to someone who is facing a job search.

Alice Bredin is author of the “Virtual Office Survival Handbook” (John Wiley & Sons) and a nationally syndicated columnist.

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