1. Design a plan for a successful layoff? Explain all important requirements..

Layoff,

Have HR identify (and train) the individuals on their staff who will monitor the process, answer questions, and advise managers. Set up communications and information gathering systems to identify employee concerns, answer their questions, and squelch rumors. Develop a PR strategy for externally communicating.

1. Layoff planning and strategy

The first step in doing layoffs is to become an in on how to do them well. The secret is to be scientific and disciplined. Remember: peoples lives and a companys survival are involved, making it that much more important that you do not take a learn as you go approach. In the planning and strategy phase, your company will need to:

• Identify the common problems that can occur during layoffs
• If you dont already have one, develop a comprehensive workforce plan that includes supply and demand forecasts, headcount fat smoke detectors, redeployment and layoff elements
• Do research and benchmarking in order to identify the characteristics and critical success factors of a successful layoff. Become an expert in workforce planning and layoffs by reading, utilizing consultants, and benchmarking. Its crucial to know when and why layoffs work, as well as why they often fail
• Where possible, study the results of previous company layoffs. Identify the key individuals involved and seek their counsel and advice. Seek out and talk to both survivors and laid-off individuals to get their reaction on what worked and what didnt.
• If it has not already been done, set the companys business objectives for the next 24 months. Then identify where and how layoffs can contribute to those goals. Sales, product development, market and economic growth, competitor actions and demand forecasts need to be updated.
• Overall business unit needs must be identified, including which businesses require a low-cost structure in order to be profitable
• Establish any needed procedures for laying off your international personnel in accordance with local laws and cultures
• Alternatives to layoffs must be evaluated and utilized. (Common strategies include: executive pay cuts, across-the-board pay cuts, voluntary or forced use of vacation, partial or total hiring freezes, voluntary separations, reduced hours, etc.)
• Get overall go ahead approval from the CEO, especially since even beginning layoff discussions can have negative business and morale impacts
• Identify the proposed goals of the layoff process. Typical goals include cost reduction in targeted areas, and eliminating poor performers and people with skills that are no longer needed. This is generally done in conjunction with the CFO.
• Identify the amount you need to save
• Narrow down the range of layoffs options and the advantages and disadvantages of each. Present them to top management and let them cull down the list to just two.
• Conduct an extensive cost/benefit analysis of the two options and present them to senior management for final approval.
• Involve the CFO early in the process. Utilize their financial acumen and knowledge of cost accounting to help in identifying key cost and leading indicator ratios that let them know when the company is getting even a little fat. Metrics and performance standards must be developed to insure that managers continually maintain a lean workforce.
• Set the final goals for the layoff process.
• Develop a rough written layoff plan and have it evaluated by outside experts.
• Set the budget for the layoff process. Include costs for outplacement, counseling, extended benefits, severance packages, consultant and legal advice, closing facilities, retraining and redeployment. Costs are almost always underestimated, so over-budget by at least 20%.

Layoff preparation Notify your HR consultant as soon as you become aware that you will face a complex layoff situation. Identify all positions that may be affected. Review the job description and identify the essential experience, skills, and/or knowledge that are necessary for each position.

How to Conduct a Layoff or Reduction in Force

• Step 1: Select Employees for Layoff. ...
• Step 2: Avoid Adverse Action/Disparate Impact. ...
• Step 5: Determine Severance Packages and Additional Services. ...
• Step 6: Conduct the Layoff Session. ...
• Step 7: Inform Workforce of Layoff.