No employer ever wants to contemplate having to lay off a large part of their workforce – but it does. In 2019 alone, we have already seen major redundancies in large companies such as General Motors, Buzzfeed and, most recently, the latest cuts by Ford. Smaller organisations, such as local factories, school districts or even fire brigades, have also had to lay off a significant number of employees.
Sometimes redundancies cannot be avoided to keep a company afloat. However, wherever possible, employers should offer redundant employees the best severance pay and support they can. It is important to show that you care about their well-being. After all, many of these individuals have devoted years to your organization.
The question then is: what is the best way to support displaced employees? To find this answer, you need to understand the greatest concerns of displaced workers. Then find ways to alleviate the specific concerns of your displaced workforce with a severance package that offers more than just a modest paycheck.
Here are three typical – and understandable – concerns of redundancies that you need to consider when determining your severance pay offer:
Solve financial problems… and more
The greatest concern faced by displaced workers is due to financial stress. Their steady payouts are gone, and depending on the size of the severance package your company may offer, they may soon run into serious financial trouble. In fact, the state of their bank accounts often causes displaced employees to make desperate employment decisions.
In a 2019 Berke Assessment report, 62 percent of displaced respondents said they would accept a job offer that wasn’t right for them, simply because they needed money.
Make sure that your relocated workers do not end up in a position that makes them unhappy. Help them quickly find jobs with fair salaries by recommending them to employers in your network or giving them potential customers to work in companies that offer at least similar benefits or opportunities for growth.
In addition to money, consider including the following benefits in severance packages:
- Written recommendations
- Information on financial programming
- Uninterrupted access to benefits
- Part-time temporary agent instead of immediate dismissal
- Sponsored certifications to update skills
Help avoid a bad corporate culture
Money is not the only problem for displaced employees. In the aforementioned Berke Assessment survey, corporate culture was the main reason why they turned down a new job. In addition, 46 percent of respondents said they would continue their search if the opportunity did not match their value personality.
While you can’t control the corporate culture of other organizations, you can help displaced workers find a job with an employer that’s right for them. Offer outplacement services that provide former employees with more valuable information about the companies they are considering.
For example, one of the best ways to measure company culture is to talk to current employees. Services like the ones offered here by CareerShift help individuals contact employees when looking for a job. This opens the door to job opportunities and gives displaced workers the opportunity to ask questions about what it’s really like to work for an organisation.
Prevent skills stagnation
When an individual does not apply their abilities every day, they become rusty. If potential employers ask your displaced workers to complete probationary assignments or skills assessments, there is an increased likelihood that they will not work as well due to lack of practice or even a shaken nerve. Especially if it takes them a while to get an interview.
In the Berke Assessment survey, 41 percent of respondents said they would refuse a job without the possibility of career development. If they have to consider a role with less responsibility than their previous role because their skills have stagnated, it feels like a huge step backwards in their careers.
Give redundant employees a chance to move forward by incorporating training into severance packages. For example, there are hundreds of free online courses they can take when looking for a new job. Perform fieldwork for redundant employees by providing them with a list of relevant refresher courses to maintain their skills.
It’s never easy to make big cuts, even if it’s for the greater good. But if you’re forced to make this hard call, do it the right way. Make sure your relocated employees have all the support and resources they need to succeed in finding a job.
Want to learn about new ways you can support your employees? Check out our blog on parental leave rules!
