Staff reduction checklist

In a time of crisis and economic recession, the problem of employee discharge becomes more critical than ever. Employers and owners whose companies suffer from crisis are forced to reduce staff and lessen labor costs. This checklist will show you how to consistently develop and implement your staff reduction plan.

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1. Considering the reasons for plan development

• Consider internal forces (a project has been completed, mandatory budget reductions, etc.) and external factors (recession, war, etc.) for layoffs
• Look for any alternatives to staff reductions (probably, non-staff expenses can be lessened to mitigate the need for layoff; some employees have expressed their interest in reducing workload, etc.)
• Consider whether staff reductions will affect the delivery of services to customers and develop actions to mitigate this impact
• Examine the affected employee appointment types (temporary employees, contract classified, professional staff, etc.)

2. Development of reduction plan

• Draw up a list of positions that are due to be eliminated or reduced (pointing at reasons for the reduction)
• Prepare assessment of the work performed by each position in the list
• While creating the list, take into consideration the skills, experience and knowledge of each employee, and then prioritize each work, setting higher and lower priorities
• Develop a post-layoff work allocation plan (it means to identify individual positions and the work that will be appointed to retained employees after the reduction is finished)
• Evaluate budgetary impact and check necessity to modify any job classification or salary grade that may result from the staff reduction
• Create and announce the layoff schedule that shows the dates and nature of staff reduction
• Draw up a communication plan that ensures all employees of the company, at an appropriate time for their positions, have been informed about the reduction and the extent to which the reductions will affect them

3. Layoff notification requirements

• Contact Human resources consultant (a 'service team' responsible for providing consulting and employment services in an organization) as soon as you begin to consider possible reductions
• Initiate the actual reduction process at least 7 weeks before the day on which the employee will get the official notice of discharge
• Draw up a list of all the individuals who need to know about the reductions, including directly affected employees, senior management, business partners and customers
• In cooperation with Human resources consultant prepare Employee Discharge Form for each affected employee
• Make all the necessary information concerning the layoff available for the affected employees

4. Work assessments and cost mitigation

• Check voluntary reductions (probably there is an employee(s) who expresses an interest in reducing his/her work schedule)
• Assess how work appointments are structured and whether current work structure most efficiently meets the company's goals and objectives
• Develop revised job descriptions according to the restructure caused by the reductions
• Consider training to be implemented if needed...

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