Employees should have plans regarding a possible reduction in force (RIF) to help them find new jobs faster and bolster their financial status in the interim. One step is to take a continuing education course to improve the competitiveness regarding resume skills. Most employers offer tuition assistance; thus, enrolling in an online course that one can complete quickly is an added advantage as it upgrades one’s resume. The second option is to build an emergency fund by cutting back on discretionary purchases and directing the funds into a savings account to serve as a cushion for the time one is unemployed (Zipin, 2021). Financial advisers advise that you must have between three and six months’ worth of costs covered in your emergency fund. The third option is to use one’s network to help find a new job by asking your professional contacts. Employees should always have a passive job search in progress as it leads one to job opportunities previously unaware of and a head start on landing a new job.
Employees whose contracts have been terminated by their company are entitled to some rights, while employers are required to assist in the transition. An employee may be qualified for severance pay, unemployment benefits, and the right to receive a final salary. An employer should offer severance packages to employees based on their years of service to the organization to reduce the likelihood of legal claims by former employees (Peek, 2022). Employers need to inform employees of their rights regarding unemployment benefits, including information they need to apply for the benefits. Employers should provide laid-off staff their final paycheck by the next business day after the termination. These payments provide financial relief while they search for new jobs.
The WARN Act was created to protect the welfare of workers who are frequently fired or laid off without warning and put in a precarious financial situation. In a layoff of more than 50 workers at a single place of employment, the legislation mandates that companies give their workforce and communities 60 days’ written notice and post-employment planning mechanisms (Hernandez, 2020). Employers who violate the legislation are subject to severe legal repercussions, including back pay and benefits for each day of violation to each displeased employee for up to 60 days (Hernandez, 2020). The Act places the responsibility on employers as the notice assures that assistance will be provided to impacted employees and their families.
Employers should provide outplacement services to help laid-off employees to move on to another job or career. The services focus on improving the skills required for re-employment, such as career transition counselling, networking and interview coaching (Lee, 2020). Organizations should engage employees to prevent guilt and stress regarding the nature of the termination. Employers should devote a week to training and discussion sessions to help HR managers deliver an empathetic and consistent message regarding layoffs. Employers should identify transition employees with extensive institutional knowledge and provide incentives to ensure smooth knowledge transfer. The transition period helps employees process the termination news while the incentives allow them to adjust accordingly.
Employers’ responsibility during a layoff is vital in ensuring a smooth transition. Organizations should provide outplacement services and termination packages that help laid-off staff have financial and emotional stability during unemployment. Employers who provide staff with termination packages ensure they understand their rights and options, provide updates on available job opportunities, and assure them of the resources that continue to be available often build professional goodwill and limit liability litigations.
References
Hernandez, C. (2020). WARN Act: What employers need to know. Insperity. Web.
Lee, R. (2020). Laid-off employees: Top six ways to help. Career Minds. Web.
Peek, S. (2022). How to terminate employee benefits. Business.com. Web.
Zipin, D. (2021). How to make a layoff less painful. Investopedia. Web.