Make sure your HR team runs a discrimination claims analysis as part of the process. The organization can target different levels of employees for furlough, as long as you have too much capacity in that group or if they are higher-paid employees. Often, targeting high-level employees for furlough can generate superior cost savings, but that strategy does carry with it the potential for increased damage to morale and retention.
Review company policies and employee contracts. You’ll want to abide by any agreements you set in place between your company and the employees. Remember if ever in a situation where you are in front of a judge, you will have wanted to follow the rules of legal documents – the judge can help you if you follow the rules of the legal document, you don’t want to be his foe and disregarded contracts – you’ll have no legal footing.
Create A Strategy
With the company’s future goals and visions in mind where is the company expanding and contracting? How will the layoff meet those goals? Making decisions based on business goals is important in illustrating your choices.
Consider All Options
If the company has thoughtfully considered all of its options before laying off its staff, the business saves itself questions in this area down the road.
Research The WARN Act
You may need to provide notice to some employees. Researching this Act will help you plan the timeframe for notice needed and the layoff.
Identify Which Roles Can Be Eliminated
And, which roles are essential? With business future goals in mind, the answers to both questions from both angles will help narrow in on what staffers are left to decide on.
Decide On Objective Criteria
According to Schwabe, “Examples of specific nondiscriminatory criteria for selection can include:
- temporary employees;
- past performance reviews;
- attendance;
- positive teamwork;
- versatility (ability to perform more than one job or function);
- department or production line closures (you may just select an entire production line);
- elimination or consolidation of specific jobs;
- the relative ability of the employee;
- training, certification, education, and experience;
According to Schwabe, “If the statistical analysis supports that you are laying off a high percentage of employees in a protected class, then it may be necessary to reconfigure the RIF so that you choose other employees to lay off who may have been close or borderline for the program.”
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