Mitigating The Impact Of Layoffs Essay

1396 words - 6 pages

a) Once a company has decided that layoffs are necessary, several steps would need to be take to determine the positions that should be cut back .The following the steps outlined below can help a company determine what positions to cut and to make the best layoff decisions for their business:
1. Decide what the company will need going forward/write company’s future goals
2. Determine If the RIF would only affects one area, will a specific department be the only one to face cuts, or will the entire company face restructuring?
3. Determine which departments or components of the company that are profitable and feasible going forward
4. Review current employees and departments duties
5. Look for ways to consolidate positions
6. Write detailed descriptions of the new job positions
7. Determine specific talent, skills, and experience necessary in the future

b) After documenting the reasons for the RIF, a RIF committee should be created by the organization. The success of the RIF depends greatly on the committee; hence, Segal (2001) suggests that the committee should be diverse in regard to gender, religion, age, and race and consist of employees from various areas of the company such as finance, human resources, payroll, etc. Segal (2001) argues that it would be very hard from a legal standpoint for employees to prove discrimination claims when the RIF committee’s members are diverse. Following the formation of the committee, the members’ first step should be deciding on the positions, the number of positions, and the department or units that will be affected. Segal (2001) suggests that a new organizational chart showing how the company would look after the RIF should also be created. Determining who stays and who goes should be the next task the committee tackles. Marshall and Broas (2009) state that eliminating specific jobs or functions should be considered by the RIF committee because “prima facie” cases of discrimination by employees when RIFs are conducted in this manner are normally dismissed (p.20). However, if an RIF cannot be conducted by means of job elimination, Marshall and Broas (2009) state that the RIF committee would need to decide on individual selection criteria. Both Segal (2001) and Marshall and Broas (2009) also point out that the selection criteria must be well defined and the reasons for their selection documented. Marshall and Broas (2009) and Segal (2001) state that seniority is the most objective selection criterion. However, according to Marshall and Broas (2009), by using seniority as the sole selection criterion, health care companies run the risk of losing employees with expertise, initiative, and leadership ability and reducing the diversity of their workforce. To avoid the risk of losing such employees, many companies rely on performance as a selection criterion. However, Segal (2001) states that because performance is the most subjective criterion, and companies that use it have more legal claims...

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