Law.com Article Counsels Better Way to Lay Off Employees
This blog, as we’ve mentioned before, straddles the worlds of law (more particularly, litigation) and management. Our presumption is that powerful lessons and insights are available where they intersect.
Today, we discuss a Law.com article that hardly deals with legal issues and, instead is focused on management issues, more particularly the impact of how layoffs are handled on morale. The article is by Melanie A. Klinghoffer, a writer for Legal Times and an attorney (“There’s a Better Way to Lay Off Employees”).
(There is discussion of the legal risks of layoffs in a recent post on the Connecticut Employment Law Blog by Daniel Schwartz, Reducing Risks in a Reduction in Force – Is There a Perfect Solution.)
With a focus on management issues, Ms Klinghoffer counsels that the better way to layoff employees involves a plan that incorporates three parts:
(1) provide sensitivity coaching for staff executing the downsizing, (2) develop a well-structured transition program for employees leaving the organization, and (3) carry out an internal reassurance and motivation program for remaining employees.
I recommend the article itself for elaboration and discussion of these elements.
In my prior life before joining the Bar, I experienced layoffs from both sides: helping to plan them (when they were uncommon, if not unheard of in the company in question) and having been laid off. There is nothing pleasant about either side. I empathize, therefore, with the personal story that introduces the Law.com article.
As mentioned, the emphasis is on management issues: layoffs can damage the morale of the remaining employees but the damage can be contained and minimized by careful planning, sensitivity and appropriate transition strategies. Not all of the specific suggestions will be applicable in all cases but in appropriate circumstances most make good sense.
Strictly speaking, the article is off-topic for us because the “better practices” identified in it are not drawn from the world of litigation. On the other hand, the article clearly identifies “better practices” so why quibble about the source. Besides, costly, avoidable litigation is always a possibility when layoffs are handled in something less than the better way.
Thank you for sharing my article with your readers. I completely agree with your presumption that there are powerful lessons and insights when the worlds of litigation and management intersect.
Since my article printed in February I have been inundated with stories of layoffs and downsizings that did not use "better practices". The companies and management team lacked coaching, transition plans and failed to plan strategically consequently creating a destructive and often time irreversible outcome.
Perhaps if more counsel step up (such as you and your firm have) and provide their clients with both preventive measures to avoid litigation as well as steps such as the plan I offered as a management solution our marketplace would experience profit and rebuild in times of challenge.