HR and Downsizing Etiquette

Whether due to economic conditions or strategic business decisions, HR Professionals may find themselves in a scenario where they will need to layoff employees. Despite the number of individuals effected, downsizing with dignity is important to minimize any damages.

Key points to remember:
- treat employees with respect and dignity
- be available to answer questions and concerns

Key Terms
This week’s HR terminology includes:

Automation: If office or plant automation makes it possible to maintain production levels with fewer employees, the result may be employee layoffs.

Offshoring: When companies move part or all of their business operations to overseas locations, domestic employees are affected by layoffs.

Outsourcing: If an organization decides to utilize independent contractors to handle tasks that employees have been taking care of, the end result will often be staff layoffs.

Severance pay: A security benefit voluntarily offered by employers to employees who lose their jobs.