Implementing a Reduction in Force

Each reduction in force is different; however there are several common steps that generally occur.

Notifications

How will affected parties be told? Consider the following:

• Employees affected. These employees should be told in person by their manager and, if possible, a human resources representative. The employee should also be provided a letter that specifies the terms and conditions. Other written communication pieces can be included such as handouts, releases, confidential agreements, references, etc. Employees should also be provided with follow-up contacts.
• Notice letter. The letter should specify service date calculation, recap final dates and benefits. Consider having the department head sign the letter. Each letter should be double-checked carefully. If possible, do not terminate an employee on his or her birthday or service anniversary.
• Employees not directly affected. Employers should not overlook the employees who will remain. They should be notified as soon as reasonably possible after the employees who are affected are notified. There are many techniques that can be used. One of the most effective is group meetings led by senior managers that review what is happening, answer questions and provide resources for follow-up questions such as e-mail hotlines.
• Community. WARN situations require notice to governmental entities. Even if the reduction is not covered by WARN, some notice to the community should be considered. Minimally, the local newspaper (and television), community leaders, directors and vendors may have questions that should be anticipated and an individual within the company assigned responsibility for responding to or contacting these groups.
• Customers. Will customers be notified and, if so, how will customers be notified and what will they be told? If the decision is not to proactively notify customers, then will "questions" and "answers" be prepared for customer service staff? Will staff be trained to handle customer questions and concerns?

• General employee meetings. How many meetings should be held for employees who are not losing their jobs and how many employees would be involved in these meetings? How long will be meetings take? Who will conduct the meetings? Do the individuals who will conduct the meetings need training in order to be effective? What support materials and handouts need to be prepared? Who will prepare the materials? Who will review the handouts prior to distribution?
• Outplacement. How will the outplacement counselors be accommodated? Will the counselors be onsite and "pick-up" the employees immediately after being notified? What suitable space is available? What supplies and resources will be needed?
• Paperwork. What paperwork and notices must be prepared and approved in advance? Will a press release be generated? Are there any employment contracts? Will notices include recapping confidential agreements or is a separate document needed? Will a copy of the employment reference be given to the employee? How will references be handled?
• Exit interviews. Will exit interviews be conducted subsequent to the notice meeting? If not, why not? If exits are conducted, how will they be scheduled? Are there any timeframe constraints? Is there any follow-up by mail planned? How will the issues of concern raised in exit interviews be addressed?

• How will employees remove their personal items from the workplace? Will the company provide boxes? If employees are leaving immediately, can the supervisor box up the employee's personal effects to avoid having the employee returning to the work area?
• Many employees may react emotionally. Tears, anger, raised voices and shocked silence are not unusual reactions. How are the individuals conducting the meetings prepared?
• In specific situations it may not be possible for the employee to leave immediately. Consideration should be given to encouraging the employee to leave for the remainder of the day (with pay). Employers should do everything reasonably possible to preserve the employee's dignity. Consider the way an employee has to leave the building and try to ensure privacy.
• If possible, do not schedule notices on Fridays or Mondays, or immediately before or after a recognized holiday. While there are no good times of the year for a reduction in force, avoid December if possible.

• Who? Who is communicating and to whom are they communicating to?
• How? How will the message be sent and how will it be transmitted?
• When? When will the communication start and stop?
• What? What is the content of the communications? What is the purpose of the communication, and what does the sender want the receiver to remember?

• Will additional security staff be needed and if so, for how long?
• Who is responsible for deactivating security access? When will it be done?
• How will employees who receive notice be addressed if they return to the workforce (assuming the employees leave immediately)?