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CeliVega
02-27-2014, 05:40 AM
Let's say that my local business is not doing well, I might have to lay off a few employees or close down my business to prevent further losses. In what manners or ways that I can tell them the news, without causing an uproar or panic for everyone? Should I at least give them more compensation or recommendation to other companies to make those that I am laying off feel better?

Share just about everything on your mind everyone!

CSomm
02-27-2014, 01:18 PM
Compensation is a mistake, as it'll only lead to a quicker demise for your company. Honesty is key here, and if you can let some employees go, this is one of the nicest ways you'll have to fire someone (it's not you, it's me---but they'll believe it) and if you can be honest to your remaining employees about what the future holds---are you REALLY going out of business, or just falling on tough times? Tell them the truth, and give great recommendations to send them on their way.

If you stay calm, they will stay calm. If you tell them everything they need to know, and answer every question, they'll support you. If they know you'll help them transition into a different job, some of them will stick with you until the end. Good Luck!

AlecD
02-27-2014, 01:37 PM
The above poster pretty much covered it pretty well. Giving them letters of recommendation and staying in contact with them is certainly the best way.Above all, stay calm and most should follow suit.

mameeker@cuse
02-27-2014, 06:47 PM
Be honest and tell your employees the truth. You owe it to them because they could potentially lose a family supporting job and should begin searching for other employment.

Taru
02-28-2014, 02:21 AM
I think the best way is to just be straight with them. If you speak of the demise in a calm manner, then you'd have a higher chance of it being received in a calm manner as well. Also, it might help to show that you will try to give them whatever support you can give past the company's closing, but only what is fair to you and your company as well since you will probably also be packed with stress and worry about the failure of your venture. I think employees will understand it if you explain things well enough, and I think that is the key to these types of situations.

delusional
02-28-2014, 05:31 AM
Compensation can pull in into debt even further. Some employees will understand. Some others will be angry and don't understand.

SimplySidy
03-02-2014, 01:28 AM
When the business is down, I cannot thing of more compensations - and I think no one can. I always have been friendly with my team and as such, I hae always been open. When I was working as a Team Lead, I would always try to get the best for the team and we were more friendly - with many discussions concerning almost everything professional and some times personal too.

So, if I had owned the business which was not going good, I would call up the team leads (if I lead the team, better for me) and share the sad news with them. And then ask them to tell them to their team members. After all, managers dont do things on their own, they get things done.

In your scenario, I would call up a small get together (some may call it a meeting, but I will keep it as a get together) and then share the sad news. Then ask the employees to suggest ways to overcome. Or if the oercoming is not possible sooner, I would ask them to take their own decision and I will not have any personal issues with their decisions.

DomDom
03-02-2014, 02:41 PM
B honest and direct! You will just make it worse by beating around the bush in my opinion. Its hard to receive things like that but its easier for them if you tell them and they know what to expect.

sdsnook
03-02-2014, 03:02 PM
When I worked for a large corporation we laid off hundreds of people. Our Director kept open lines of communication with the entire team. He held department meetings, manager meetings and required his managers to meet with their people. When it came time to lay off specific people he did all of them personally, he did it rhythmically and sympathetically. Trust your leadership skills to do the right thing. Your employees are not bridges you want to burn!

danderson239
03-02-2014, 03:46 PM
Compensation is a mistake, as it'll only lead to a quicker demise for your company. Honesty is key here, and if you can let some employees go, this is one of the nicest ways you'll have to fire someone (it's not you, it's me---but they'll believe it) and if you can be honest to your remaining employees about what the future holds---are you REALLY going out of business, or just falling on tough times? Tell them the truth, and give great recommendations to send them on their way.

If you stay calm, they will stay calm. If you tell them everything they need to know, and answer every question, they'll support you. If they know you'll help them transition into a different job, some of them will stick with you until the end. Good Luck!

This is all true. The only thing I'll add - advanced notice of layoffs, if delivered correctly, will help. If you know you'll need to lay someone off at the end of the quarter now, consider telling them now. If delivered correctly, you can gain a lot of respect from your soon-to-be laid-off team members. Keep in mind, there's a PR element to consider with lay-offs. You don't want these employees to be bitter towards your business and ruin your reputation after they leave. The more empathetic and open you are, the more you'll gain respect.

29525500
03-02-2014, 03:56 PM
I would say the best thing to do is to tell them the truth, calmly, and sadly. Than I would offer directly to let anyone leave with a good recomendation. It is a gamble but it should come across as a challenge and hopefully many will try to answer it.

autograph
03-03-2014, 08:33 AM
You should gather your employees and deliver the news to them personally. Let them know that after some time, you will start to let go some of the employees. Be sure to give them good recommendations for those that deserve it to smoothen the process. Make sure that you tell them that it is not their fault.

alec
03-03-2014, 08:51 AM
Bring them all together and explain how and why things are going the way they do. Don't forget to tell your employees what are you planning to do about it. Seeing the issue handled with competence, active solution seeking and calm will keep them going strong and assure business doesn't go downhill even further.

As long as you can pay them and have an action plan at hand, the chance of them quitting is small.

The only case where I feel the employees are gonna run at the first sign of crisis is at those jobs where they worked constantly under pressure with bad management. They'd be fools to trust promises of better days from management like that.

Eagles910
03-03-2014, 09:00 AM
You shouldn't need to calm them down. This is business things happen. They should already be aware of that fact. All that you can do is tell them the truth. Let them know that they need to start searching for other means of employment. Assure them that you will provide a positive reference for them to their next employer. That should be enough.

ab123
03-05-2014, 03:03 PM
If you really have to find a way to save some money and it comes down to the cost of your employees, just a word of advice - always choose layoffs over paycuts. I know paycuts can seem like you're doing everyone a favor by not putting anyone out of a job, but paycuts completely kill morale and productivity and will hurt your business more in the long run. If you explain to the employees that you have to let go that it's purely for financial reasons and not for their performance, and give them letters of recommendation and offer to stay in touch like others have suggested here, that's really the best you can do in a tough situation.

ab123
03-05-2014, 03:07 PM
This is good advice. I'd also add to make sure the owner expresses his commitment to making the business a success and shows his/her passion for the company and employees. It's important that the employees don't feel like the clock is ticking on their jobs and that the boss has their jobs in mind as much as possible.

LindaKay
03-05-2014, 06:25 PM
People aren't going to be happy about losing their source of income. Would you be? The only thing you can do is handle it as professionally as possible.

Eagles910
03-05-2014, 06:58 PM
You are exactly right. This shouldn't be such a hard process. It's all business. You are the company owner. Do not be scared of your employees. Business is Business. Employees know how things work rather they admit it or not. There will only be backlash if you allow it. So be firm, and deliver your message.

cpefley
03-05-2014, 08:35 PM
If you are laying them off, how can you afford to compensate them? I would definitely try to give them enough time to make preparations to find another job, if you can. I would also write recommendation letters for those employees, if they deserve it.

caveman
03-06-2014, 02:19 AM
You can't really calm them down about it really. Because if I was in their position I would still freak out no matter what you say. The only way to approach this is in a professional manner by explaining to them. But this is already expected in the business world and they still got into it so it shouldn't be too bad.