In today’s challenging economic climate, layoffs at small businesses can become a necessity. In April, U.S-based employers announced 64,789 cuts, which was a 28% decrease from the 90,309 cuts announced in March, according to a report by global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc. However, Andrew Challenger, senior vice president at the firm anticipates more cuts in the future as labor costs continue to rise.
When faced with the need for layoffs, it is crucial to handle them in a professional manner. First and foremost, it is essential to comply with regulations related to layoffs such as the federal Worker Adjustment and Retraining Notification Act (WARN Act). Different states may also have their own rules regarding layoffs like New York State’s WARN Act. Crafting a layoff plan is the next step which involves choosing dates for the layoffs and notifications as well as informing employees privately about the situation.
It is important to clearly explain the reasons for the layoffs and update employees about severance benefits, unemployment benefits and health insurance options. Offering support such as writing a letter of recommendation for affected employees can also help ease the burden of the situation. Managing layoffs with empathy and professionalism is key to maintaining a positive work environment amidst challenging economic circumstances.
