SEPTEMBER 2006: ISSUE 61
YOU'RE... CYBER-FIRED? WRONG WAYS TO HANDLE EMPLOYEE LAY-OFFS
In a troubled economy, it's no surprise that so many companies
turn to downsizing to stay solvent. What is surprising is
the callous way some employers go about it. For example, via e-mail - yes, e-mail.
In late August, for example, according to an Associated Press (AP) report,
an electronics retailer used e-mail to let employees know that it would
cut 400 to 450 jobs, mostly at headquarters. The layoffs were necessary,
the company's e-mail explained, to cut expenses and "improve
its long-term competitive position in the marketplace."
On August 29, the company followed through with this e-mail: "The
work force reduction notification is currently in progress. Unfortunately
your position is one that has been eliminated."
In its defense, a company spokeswoman explained that company officials
had told employees in a series of meetings that layoff notices would
be delivered electronically.
But many outside observers aren't buying it.
"If I put myself in their shoes, I'd say, 'Didn't they have a
few minutes to tell me?'" commented Derrick D'Souza in the AP report.
Others agreed with D'Souza, a management professor at the University
of North Texas, that the move could be seen as dehumanizing.
"In most layoffs, you're releasing employees
who had performed up to standards," said Gail Jern, Westaff's
Human Resources Manager. "So, you really have to appreciate the
work they've done and treat them as respectfully as possible.
Acknowledge that they did get up every day and go to work faithfully
to take care of clients and make sure the business was running right.
Remember that for most people, a layoff is a major upset
for both them and their families."
More Unhappy Goodbyes
According to the Bureau of Labor Statistics, almost 115,000 people
lost their jobs in July in mass layoffs - those in which companies
let go 50 people or more.
In an era when "somehow layoffs have become an almost everyday event,
it's easy to treat them cavalierly," said John Challenger, chief executive
of the outplacement and human resources consulting firm Challenger, Gray & Christmas
Inc, in a recent Washington Post article.
This summer, for example, a worker in London learned she was fired
from her sales job by text message, according to the Post. "We
are a youth business, and our staff are all part of the youth culture
that uses (text) messaging as a major means of communication," the
company, a chain body-piercing studio, told a local newspaper via -
naturally - e-mail.
In yet another example of employer callousness, a former director
of admissions at a Boston law school told the Post how he was
let go in the midst of interviewing a potential student for admissions.
When asked to go to the new dean's office, he left the potential student
(who was none too happy) mid-interview. There, the dean told him that
he was being replaced with a computer system that would figure out
which students to admit. The job was over, immediately.
Other Downsides of Poor Downsizing
These kinds of faux pas are not only demeaning to employees
who are being let go, they can also be damaging to the employers who
have lost sight of the importance of respect. The consequences are
sure to be far worse than bad PR, said author Ruth Haag in a recent
press release from Rocks-DeHart Public Relations. For example,
being cyber-fired can make them wonder if they were ever important
to the company - and raise similar questions in the minds of
remaining employees.
"While quick and expedient on the part of management, letting
someone go in such a disrespectful way is destructive to morale and
worker loyalty," said Haag, author of Hiring and Firing: Book
Three, the third book in a four-part series entitled Taming
Your Inner Supervisor. Haag is also the CEO/CFO of Haag Environmental
Company.
"First of all, the remaining workforce will be spending an inordinate
amount of time talking about the layoffs, rather than working," Haag
said. "And as they will fear that they could meet the same fate,
your best employees will begin looking for new jobs."
"To top it all off," she added, "the e-mail layoff
method will most likely lead to trouble attracting dedicated workers
in the future. What promising candidate will want to work for a company
that treats its employees so inconsiderately?"
Using a Little Compassion
Laying off employees may always seem like a lose-lose situation. But
if done with compassion and respect, a company can avoid damage to
its reputation (See Side
Story).
A company also stands a far better chance of hiring back its best
employees at a future date or possibly working with former employees
on a contractual basis, Westaff's Jern said.
"In any business, as the saying goes, you never want to burn
your bridges," she added. "And from a human point of view,
treating employees with respect is just the right thing to do."
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