Compassionate approach eases layoff pain

Having recently been on both sides of the employment fence, one of the counselors at Resource's Employment Action Center recently discussed with me how little it takes for employers to make life easier on employees they are letting go, and what great benefits they get in return for their thoughtfulness.

Glenn Sonnee joined our agency this year after 36 years at the Federal Reserve Bank in Minneapolis as a trainer in the bank's check-processing department. He volunteered that his former employer deserves kudos for how it has handled the layoffs of more than 250 people because of significant reductions in demand for paper checks.

Sonnee said the bank gave its employees plenty of notice, communicated regularly with them about impending layoffs and provided support for finding new jobs both internally and externally. In return, employees worked hard through their last day and upheld the trust their employer had in them.

"Best of all, no one was ever presented with a box and escorted to the door by a security guard," said Sonnee.

For more than 30 years, our division of Resource has helped almost 30,000 residents of the Twin Cities find new employment after being laid off. Layoffs are generally difficult for both employers and departing employees.

Making life easier

Laid-off workers have told us that there are some things an employer can do to make a layoff notice a little easier to take -- and probably easier to give. These are the most frequently mentioned:

• Laid-off workers who have been given as much notice as possible that their job would be ending report appreciation for the extra time they had to prepare.

• Giving some explanation of why the layoff is occurring makes hearing it a little easier, especially if it emphasizes that the layoff is not because of poor employee performance.

• Allowing pre-layoff reemployment services at the job site to help workers find new work as quickly as possible and minimize unemployment time cushions the blow of job and income loss.

• When laid-off employees know community-based services are available to help find new jobs, it helps them feel hopeful about their future. The Minnesota Department of Employment and Economic Development (DEED) www.deed.state.mn.us/dw/worker_info.htm is a great resource for information.

• Giving a reference and contact information reinforces that the company cares about what happens to its employees.

These are basic steps most companies can take without adding significant costs. In addition, the Federal Reserve offered some extras that made layoffs go smoother:

• Management maintained an open-door policy for questions and just talking things out.

• As a phased layoff, the company asked for volunteers, which had no adverse effects on their separation packages. Management still controlled who left when, but employees felt like they had some choice in the process.

• Layoffs were done in private, and in person, respecting confidentiality. Each person received a layoff letter to review before signing. They also were allowed to inform people about their departure themselves.

Treating employees well goes a long way in protecting a company's image. Sonnee doesn't think that the Federal Reserve Bank's compassionate approach to layoffs was all about public relations. He believes it had more to do with management's care and commitment to the organization's employees.

Do well, end up looking good

In early March, the bank had a gathering at a local hotel for former employees. One of the executives thanked them for what they had done. He reported that throughout the layoff process there were no reports of "slacking off" and that departing employees exceeded every work standard.

The Fed's story is a win-win for both the employer and former employees. The bank's positive reputation was maintained during the process. Given the small costs of incorporating basic compassionate measures during layoffs, I hope other organizations can learn from our extensive experience.