How to Diplomatically Lay Off Staff During a Recession: Diplomacy is Important

There is no easy way to layoff staff during a recession, but staff layoffs can affect employees' perception of themselves, their work and their potential employment future, individually and collectively. Thus, diplomacy is important.

Knowing how to layoff staff diplomatically during a recession is vital for everyone’s well being. 

Understanding the meaning of the word diplomacy will help you as an employer to diplomatically layoff staff. 

According to the freedictionary.com, the word diplomacy is “the art or practice of conducting international relations, as in negotiating alliances, treaties, and agreements” or with respect to employers and employees, “tact and skill in dealing with people” which also entails “skill in managing negotiations, handling people, etc., so that there is little or no ill will”.

Recession signifies a decline in the economy that can affect everyone’s lives.

Many businesses downsize their organizations or operations when there is a global recession. Recessions can happen suddenly and unexpectedly in conjunction with global affairs, or on a smaller scale with respect to the economic status of any country. All employers and employees are vulnerable to recession in one way or another. At times, for employers with successful business organizations, there are no other alternatives than staff layoffs.

What can you as an employer do when you are forced to layoff staff?

Begin by explaining to your staff the reason for, as well as the degree or nature of the layoff with honesty and with integrity. An apology from an employer can go a long way in preventing ill will related to layoffs. It is important for staff members to know approximately how many staff members will experience layoff and why. 

Knowing when and what they can expect during the layoff process is important.

Breaking the news of a staff layoff carefully and cautiously is a good idea. Be aware that news of how, when or where a layoff will take place can result in employees experiencing shock, fear and panic, even if a layoff is anticipated.

When layoffs actually happen, it is not an easy time for employers or employees. When a staff layoff is uncertain, but possible, it is advisable to let employees know in advance, because many of them can prepare for staff layoffs and make plans regarding other possible employment. The danger in doing so is that some employees may choose to quit rather than wait for the actual staff layoff date.

Employer-employee negotiations may be inevitable and often become volatile in nature. Unions may be involved when there are broken contracts and employees are entitled to specific benefits, vacation pay or payouts. Individual or collective negotiation should be equal and fair for all employees.

Treating staff with dignity and respect at all times, is important.

Providing accurate employment records will help employees obtain unemployment insurance or other government benefits they are entitled to receive. Stating the reason for layoff on employment records, for example, as downsizing, is important with regard to staff being able to obtain other employment. Encouraging them to upgrade in terms of academic courses, skills and training ahead of time, can prove beneficial.

Diplomacy is something that successful employers practice with respect to their staff at all times, but it is particularly important when there are layoffs. If diplomacy is manifest by employers with respect to layoffs, employees will be able to see the possibility of being rehired or returning to their original jobs, in the future. Diplomacy offers an aura of hope and expectation, even during a recession.