Managing in Difficult Times: Handling Terminations in the Workplace
There are not many people who have been left unaffected, whether directly or indirectly, by the current economic crisis. With family, friends or colleagues losing their jobs, many employees will feel insecure, and morale and productivity can be adversely affected. What can managers do during such times to minimise the impact on employee morale and performance? By handling difficult decisions in a respectful way, managers can set the tone for their organisation, creating a work environment that says the organisation values all of its people, even if they have to let some of them go. When a manager is well prepared and able to communicate honestly with his/her team, employees exiting leave with dignity and the employees who remain are free to carry on, secure in the knowledge that their workplace treats people fairly and respectfully in good times and in bad. Below are some guidelines for managers to consider when faced with the difficult decision of whether and how to terminate the employment relationship.
Transparency
Although it is not always possible or desirable to let employees know how bad business is, do let employees know the true picture as soon as possible and be honest about the prospects ahead, particularly if redundancies are likely. They will find out in any event. Consider letting your workforce know ahead of time that the state of the business necessitates terminations; assure them that a process will take place to ensure that the decision-making process will be conducted in a fair manner, and that you will let them know of the outcome as soon as you are in a position to do so. Once a decision has been made to make cuts in the workforce don’t take employees by surprise by giving affected employees notice of termination on the same day that such a decision is announced to the workforce as a whole. This is likely to result in a ‘shock factor’ with long lasting reverberations on the morale of remaining employees.
Clear and Open Lines of Communication
Communicate honestly. Avoid distrust, suspicion and rumors by establishing clear and open lines of communication with your employees. People deserve to know the truth, and will appreciate your frankness and honesty. Try to keep any closed-door sessions and private conference calls to a minimum. Secrecy will only generate fear, incite rumors, and lower morale. If you have to impart bad news from an organisational perspective, then tell it to your team all at once rather than letting it leak out for some team members to disseminate to others. Encourage your team to talk about issues they’re having, and be aware of signs of unrest or signs of stress.
Consider Alternatives
Consider all alternatives before making the determination to terminate someone’s employment. Can employees transfer to another department? If it is a budget issue rather than a headcount issue, would employees be willing to take a period of unpaid leave or a pay cut in exchange for reduced working hours? This has been a method used by many employers in the region as an alternative to redundancies. Most employees when faced with such a request are likely to be willing to make the personal sacrifice if they know it will mean that jobs are able to be saved. If you are able to demonstrate a commitment to keeping your employees, rather than letting them go, you will earn their respect and loyalty. If terminations have to be made, consider offering voluntary redundancies as a first step. If your organisation is in a position to do so, give employees a period of grace during which they can find alternative employment whilst remaining as an employee on your books, and/or offer outplacement services to help employees find new jobs or training or further education opportunities.
Delivering Bad News
Telling someone that they are being made redundant is difficult news to impart. Any such conversation should be handled sensitively, in a discrete manner on a need-to-know basis. Failure to handle such conversations appropriately can lead to distrust and fear amongst remaining employees, or worst case scenario, a lawsuit. Whether well-founded or not, having to deal with a lawsuit filed by a disgruntled employee can take up an inordinate amount of time and money. Risks associated with terminations can be mitigated by making sure you are well prepared for the termination meeting. Make sure you vet the decision to ensure that the termination is lawful and fair and that you understand your legal duties and obligations as an employer regarding employee benefits, severance and notice entitlements. Follow any internal HR policies that your organisation has to ensure that you handle terminations in a consistent and lawful manner. Know what you are going to do before, during, and after the termination conversation. Approach the conversation in a way that you would want to be treated if the tables were turned: be clear in your message, direct, honest, calm and understanding.
Preserving and Boosting Morale
The way that terminations are handled will have an impact on the morale of remaining employees. If you handle terminations sensitively, treating affected employees with dignity and respect, you create a work environment that says you value everyone’s contribution. For existing employees whose bonuses or overtime may be down or non-existent, consider offering alternative methods of compensating. Improve your employees’ work-life balance by offering flexible working hours or introducing telecommuting, allowing them to work from home one day a week. Another relatively cost-effective way of rewarding members of your team is giving them the opportunity to go home early one day a week in recognition of their good work, or even taking a day off, without having to use their annual leave entitlements. Use any reduction in the workforce to think creatively about job design, assigning different responsibilities or redefining roles to give employees the opportunity of gaining experience in another area of the business or of learning new skills. Don’t forget the power of a well-delivered ‘thank you’ for a job well done. A ‘thank you’ made in front of the team is usually more meaningful than a rushed ‘thank you’ in the corridor. If you e-mail a team member to say thank you, consider copying that message to other members of the team and your own boss. Sending a handwritten ‘thank you’ note when someone goes above and beyond the requirements of the job can provide a well-deserved boost and sense of achievement.
Lead by Example
If there are now fewer employees having to perform the same workload, roll your sleeves up and ensure that you are working as hard as they are. Keep setting goals. If your team has something real to work towards, it will help keep their attention on what needs to get done. If you remain focused and committed to your role, your positive attitude will be an inspiration to your team.
