Question

What types of support can an organization provide to employees identified for layoff?

(250 words)

Answer 1

Introduction:-

Labor decisions have of lately become an extremely important discussion of micro economics, primarily because of the fact that they impact costs for a firm in a very large manner. Further every employees combined effort is what brings in profits for the firm and ensures that it operates under equilibrium wherein it can maximize its economic profits.

Layover are never easy for a company to do since it spends a lot of money on factors such as employee training and development and the overall productivity and work morale of the existing employees also may get impacted.

Following are the support options which can be provided to employees which have been clearly identified for a layoff.

Case Specifics:-

Though, the overall support options available and adopted by different firms may vary, the following are key things which an organization can improvise so as to allow other employees to not get affected and its productivity to remain constant:-

1) Monetary Compensation:-

This indeed is the first and foremost choice which allows for the financial impact on employees to reduce to a certain short term extent. Companies that compensate employees for layoff tend to maintain the same morale of the existing employees since they realize that it is the most important factor for anyone.

This however is more of a quantitative method to adopt and is short term since it becomes hard for people to find jobs post layovers.

2) Counselling; Explaining Reasons:-

Most often, companies are faced with employees with low productivity, or processes get clamped down because of improvement in technologies for which the existent employees are rendered useless for a firm.

Thus, explaining these reasons and playing fair with employees is extremely important. An employee must know correctly as to where he lacks so that in the future those areas can be corrected respectively.

The employees can also be told to take specific training to increase their knowledge base so that they stay relevant for the industry which can then hire them.

3) Out Placement Communication & Help in Networking:-

It is important to realize that not all the employees would have the network required to get them employed again. While companies may directly be involved with recruiters and other agencies which help them in providing resources, such agencies can be communicated easily to the laid off employees respectively.

Also, a company can provide help in networking by connecting lay off staff with others which could help them in getting a job. These could include industry experts or others which the firm is aware off.

Conclusion:-

Thus, we can conclude by saying that layovers are often necessary for firms to reduce costs of operations or to make sure that employees with lacking skills are removed from the organization.

However, to allow this seamlessly and to avoid a back clash from employees it should be a well thought out plan and be assistive to employees that are being fired. This allows long term success for a firm as a brand.

Please feel free to ask your doubts in the comments section if any