How to Layoff Employees Smoothly

how to layoff employees smoothly

Hiring the right employee can be tough sometimes, but what’s even tougher is getting rid of bad-hired employees without having a big impact on their team. That’s where you need the right layoff process to keep running your team smoothly. Because any wrong step in the layoff process can cause the organization a significant financial loss by such employees layoff. And that’s why to make the employees’ layoff errorless, organizations should use a HR software.

Even if, by mistake, the organization attracts a bad hire, there are ways to lay him off without creating a massive impact on the status of an organization. Here we have listed down the ways to make layoffs more tolerable for any organization.


Even if, by mistake, the organization attracts a bad hire, there are ways to lay him off without creating a massive impact on the status of an organization. Here we have listed down the ways to make layoffs more tolerable for a small business.

What is an Employees Layoff?

An employee’s layoff defines a state of temporary or permanent employee termination from employment because of an ill personality discovered from the regular analysis that may negatively affect an organization’s reputation. It is up to the organization what type of actions to take against such behaviors. The layoffs can be due to an employee’s faults or the company’s hardships.

Why is an Employee Layoff Essential?

One may never want to be a part of laying employees off. It is challenging for an employer to downsize their work staff, but it becomes essential due to these reasons.

Sometimes, employees are not paying much attention to their work. This may bring negative effects to the workplace and other employees. It is definitely not a good sign to reflect on your customers.

In the beginning, the organization may leave the employee on warning. But if the same condition happens again, then the employee can be terminated immediately without any notice. This is the reason almost all companies prefer the probation period. Hiring an employee under probation gives the company all the right to dismiss an employee of all the responsibilities.

However, employees are not the only reason behind the layoffs. The company’s willingness to downsize and problems in handling employees may be the reasons why companies prefer employee releases. For example, many employees have lost their jobs due to hardships in the corona pandemic. This happened due to the gaps in communication between workers. However, with the right remote monitoring solutions, those problems could be solved easily.

How to Layoff Employees to Lighten up the Stress of Employers?

Knowing that laying off employees isn’t easy, employers can follow our guidelines to lighten up their stress. It is always fruitful to analyze and track the ethics of a company and the legal regulations on employee termination. Despite finding another employee, it is better to terminate the one with low dedication. Here are the steps that may lighten up the stress of the employer to a greater extent.

1. Know your Business Requirements

Laying employees off is a big decision. Performing it without any prior planning can be challenging for the company. Before dismissing any employee, an employer must be able to configure how to manage the activities of that particular job. However, delay or failure in laying off people can be harmful to the business’s finance and reputation.

Some of the solutions to this include

  • Avoid paying unnecessary incentives to the employees.
  • Stop promoting such employees.
  • Suspend such employees.
  • Cut-off the overtime from the salary

By suspending employees, the employer can easily manage the finances and the workflow of the company. It helps them get the functions right on track before the breakout. Some of the companies choose rather to suspend the employee than laying them off, But despite the suspension, such employees still are employed and join back whenever the employer wishes.

Before planning a staff layoff, there are a few things to be analyzed and followed immediately to stop the company from going over budget.

  • Start the recruitment of candidates for job positions and avoid making similar mistakes.
  • Analyze your budget and act accordingly.
  • Discuss with the employees to overcome such behavior to reduce the risk of losing employees.

2. List Down the Staff Layoff Details

Before planning to speak with employees, it is better to have proof of the details. The employer may never want to create panic around the workplace by delivering wrong decisions. Thus, figuring out ways to lower stress and panic is something more essential. Here are a few options an employer can go with.

  • Analyze if the company needs permanent or temporary staff layoff.
  • What are the reasons for choosing to fire employees?
  • What assistance can you offer to such employees if it’s not their fault?
  • Who will get the layoff?
  • Analyze how much of your ongoing work is disturbed.
  • How will this affect the current staff?
  • How to warn employees if needed?

3. Handle with Care

Employees are the organization’s primary assets, and handling them with care and support is also essential, along with the job work. Despite the lack of performance and attention to work, treating employees with dignity and respect shows the culture you reflect on at your company.

In the beginning, it is always hard to interact with the employees on the matter of their layoffs. But somehow, finding out a simple and understanding way is what an employer should have. Even if the business is going lower, and you need to terminate employees, show them enough support that makes them more helpful to the company’s needs.

Such an understanding can help employees and employers stay connected even after the layoffs. And once the company gets back on track, employers can reemploy the terminated employees who were beneficial to the organization.

This nature of the company can attract more worthy candidates and retain the employed ones for a longer time. But it would be better to ensure that they are receiving all the incentives and rewards to avoid wage violations.

4. Smooth Down the Transition Period

As we mentioned earlier that the employer might need to lay off even the talented and knowledgeable employees due to the hardships of the small companies, it is advised to smooth down the transition period to avoid the adverse effect on the company’s services.

For example, the company has four designers, but the employer only has to choose two who have to take up the familiar work, though with more responsibilities comparatively due to the downsizing. Under such conditions, you can ask the dismissed employees to provide assistance to the other employees by increasing their transition periods.

Meanwhile, you can even identify if those terminated employees are actually worth keeping in the company. Moreover, you can offer incentives to encourage and support them. This also creates a positive impression of you organizing appreciation strategies for the current staff.

5. Provide Assistance After Layoff

As you layoff employees, offering them support under such circumstances can be more beneficial to them due to an impact on their employment. You can offer them assistance in outplacement with which they can receive help in building knowledge and career development. The employees can also avail themselves the unemployment benefits for termination due to the company’s closure.

Such a step increases respect despite the reasons for the dismissals and shows employees that the employer genuinely cares about their employees’ wellness and productivity. You never know, but you may wish to rehire them again. Creating such a positive reflection can go a long way.

Summing it up

Employees Layoffs are never easy for employees and employers. Employees may get depressed due to the stress of balancing life and finding another job. Employers also may find it difficult to let go of their best workers, whatever the reason is. But planning out all the strategies can help get through it, and offering assistance to the employees can help to maintain the same mutual understanding in the future too. Employees layoff is an important function among the HR functions. If you want to learn more about other HR functions, then you can read our guide on human resource.

Grow your business with factoHR today

Focus on the significant decision-making tasks, transfer all your common repetitive HR tasks to factoHR and see the things falling into their place.

Fill details to request free trial

  • This field is for validation purposes and should be left unchanged.
Request Free Trial