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Severance: Say goodbye on good terms when forced to downsize

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in Best-Practices Leadership,Hiring,HR Management,Human Resources,Leaders & Managers,Management Training

If you’re contemplating a layoff, you’ve no doubt given some thought to which employees you want to let go—and which ones you absolutely must retain.

But know this: Every time an organization lays off even a few employees, voluntary turnover jumps in response—and the ones who choose to leave are most likely employees you intended to keep.

In fact, the Academy of Management Journal reports that companies that laid off just 0.5% of their workforces—that’s one employee for every 200 on staff—experienced a turnover rate after downsizing that was 2.6% higher than competitors with no layoffs.

Reason: Employees who witness layoffs among their peers fear that they’re next, so they start looking for new jobs. And if the laid-off employees are treated disrespectfully, the valued employees you chose to retain are even more likely to jump ship.

Solve this problem by beefing up your organization’s career transition benefits, which c...(register to read more)

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