Employee Dismissal: Planning, Procedure, and Compensation Payment

Subject: Employee Management
Pages: 6
Words: 1679
Reading time:
6 min
Study level: College

Personnel layoffs are a problematic chore that some business managers regard as challenging to perform, but circumstances always force them. Consequently, terminating a member of staff who has never had any issues with the manager may appear to be too difficult. Nonetheless, due to circumstances, one is sometimes obliged to discontinue the services of such an individual (Collins et al. 19). When there is any form of strain or stress to take that step, Hobson’s option is always acceptable and successful to let the person leave the organization. However, some repercussions usually emerge during employee dismissal, which could significantly affect the company’s performance.

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Coping with Undesirable Reactions that Accompanies Workforce Termination

Below are three tried-and-true strategies for a manager to deal with the unpleasant emotions of organizational dismissals.

Plan Carefully

The layoffs must be thoroughly designed and executed, with no aspects overlooked. The human resources manager (HR) must aid top management in probing inquiries to determine how vacancies will be replaced. They should also consult with defense advisers to fully comprehend the risks and consequences of each activity. It is vital to evaluate the skills, capabilities, and expertise that the organization will need in the future and how current personnel will integrate into succession planning. The business should take advantage of this chance to focus on the success and advancement of the future workforce, giving them a considerable advantage when regular operations restart (Collins et al. 22). It should also maximize current talented employees and pursue strategic planning before a rival takes them.

Treat Staffs with Dignity and Respect

Administrators should approach every personnel with decency and respect. They should handle each individual as though they are the only ones affected by the issue, even if it impacts many people. Each staff has the right to a private conversation with the leadership, and they should be given a chance to ask questions. The message should be presented with compassion and sensitivity, considering that the dismissal will affect their families and livelihood.

Re-recruit Remaining Workforce

The leadership should demonstrate a high degree of engagement and transparency when communicating to the employees. This is the time to re-hire existing staff by reaffirming the company’s commitment to them and stressing the support provided to those affected. Convince them of their relevance and purpose within the firm to avoid losing them. The HR must be adept in dealing with such circumstances to ensure that people affected are treated with dignity and aided in making a peaceful transition (Collins et al. 30). When corporate leaders properly implement the plan, they may also restate their dedication to current workers and clarify the organization’s objective, assuring its success.

Procedures for Organizing for an Employee Dismissal Meeting

Observing the essential procedures of organizing a staff dismissal meeting might provide favorable effects since workers are prepared in advance about the impending termination. Thus, the first step to take when holding such a meeting will involve notifying the targeted parties (Collins et al. 30). In addition, giving a notification to employees and letting them know about the possibility of dismissal is one method of upholding the right to inform persons ahead of what will happen to them. This might help avoid a legal dispute if the employee is sacked without following the proper procedure. The notification should also outline the benefits that the soon-to-be-affected staff members will receive. The second step would be to draft a letter of disengagement. After the workers have been acquainted with the reason for termination and the associated benefits, it is time to prepare forms of discharge, which will be distributed to the affected individuals. The papers must be well-structured, and no vulgar or insulting language should be used.

The third phase of this process would be to review the upcoming meeting with the company’s legal advisor. In this case, senior executives, human resource specialists, and the firm’s attorneys should discuss the procedures of the layoff meeting in-depth. This is where the administration also devises strategies that will help avoid a disorderly dismissal meeting (Collins et al. 35). The fourth stage is when the management invites the targeted workers to a session. However, affected people should be informed about the termination talks by their former supervisors. The meeting’s date and venue must also be announced to these personalities. Nonetheless, the date and location might be posted on a noticeboard or in strategic locations around the firm so workers can identify it and understand its details.

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The final step is the stage at which this specific encounter will occur. Arriving on time at the meeting place is crucial because it helps decrease tempers among the aggrieved party. Refreshments and water should be available at the venue for the firm, board of management, and concerned staff to enjoy. Furthermore, making the dismissal meeting look conversational can successfully encourage impacted personnel to receive the severance letters without producing chaos or gridlock at the conference (Collins et al. 37). It is proper to encourage all workers who came to the meeting to collect their dismissal papers from the concerned authorities immediately after the end of the session.

Conversely, it would be critical to evade humiliating individuals and branding the former employees as outsiders. When dealing with laid-off individuals, human resource management should be guided by empathy and concern. When the dismissal event is handled respectfully, the impacted employees are more likely to accept the outcome (Collins et al. 38). However, sacked workers who refuse to come to the meeting or collect their termination papers would have to leave the firm’s premises immediately. If they do not oblige, law enforcement personnel will have to be authorized to chase the rude and obstinate former staff members.

Defining the Reimbursement of Laid-off Workforces

Compensation has always been a source of solace for any terminated employee. In today’s environment, when employment regulations or policies are in place to manage human resources, it is unthinkable to fire a worker and refuse them severance. If that person is rejected this privilege, the business may face substantial litigation, resulting in unforeseen consequences (Black 499). Different companies have different rules for evaluating employee compensation in the event of a reasonable dismissal.

As an administrator tasked with determining ex-employee pay, I will consider the following aspects: Firstly, is the length of time the individual has worked for the company. For example, if a former member has been in the firm for ten years, the remuneration will be substantial. Secondly, it is critical to consider the employee’s monthly wage. For instance, if they make around $300 each month, this should be included. Thirdly, while computing pay, it is also relevant to determine each individual’s yearly wage (Black 501). In this case, multiply $300 by 12 months which comes to $3600. I will then provide a quarter of the yearly wage multiplied by the number of years of service. In this scenario, the former employee is required to receive a quarter of 3600 US dollars divided by ten years, which should be a total of 9,000 US dollars. Using the above example, the remuneration of this particular former worker would be 9,000 US dollars.

A Table Showing the Chronology of Compensation Payment for the Workers

No. of Staffs Reimbursement / Payment
on Monthly and in the year 2020
The percentage offered is 0.25% Yearly Wages in
US dollars per person
Years worked for the company The Total Amount of Money acquired in US dollars
1 July 2020 0.25% 3,600 10 9,000
2 August 2020 0.25% 2,000 6 6,000
5 September 2020 0.25% 4,000 5 25,000
3 October 2020 0.25% 8,000 4 2,400
4 November 2020 0.25% 16,000 1 16,000
3 December 2020 0.25% 3,600 1 2,700

As shown in the table above, which displays the former workers’ compensation, the payout month is decided by the period (number of years) they had served. According to both the formula and the table, individuals who have worked for the firm for a long time are reimbursed earlier (Collins et al. 40). Thus, the total salary is equal to the number of personnel (multiply by) the percentage given (multiply by) a person’s annual wage (multiply by) the number of years they had worked.

Question 5: Employee Lay-off and Its Effects on the Company Performance

Workforce downsizing has been demonstrated to increase anxiety, tension, weariness, and uncertainty while decreasing morale, job satisfaction, and trustworthiness. Increased turnover and diminished motivation among personnel to assist one another, as well as poor job and business performance, are all linked to the above process (Collins et al. 37). Laying-off people who have contributed significantly to the company’s productivity might have disastrous implications. Nonetheless, the agency’s human resources and senior management, as well as the rest of the workforce, must recognize the retrenchment’s influence and explore measures to mitigate it. As a result, the sacking might have various effects on the organization, as shown below.

Firstly, the organization may face poor performance since staff accustomed to working with dismissed coworkers cannot focus entirely on their duties. They will be demoralized, and the entire group will seem unpleasant and revolting to the point that some may wish they had been fired along with their former coworkers (Park and Kim 192). Due to that, a person dissatisfied with their employment might reduce the company’s performance by lowering output, resulting in the firm’s failure to meet its goals.

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Secondly, due to the abovementioned exercise, the enterprise may attract some negative attention, as the public always loathes a corporation that fires people. If the surrounding community realizes that a given firm is accustomed to terminating its employees, they will always regard that company as an adversary and a barrier to employment development (Collins et al. 52). This will lead to a negative public perception of the company, which may contribute to diminishing market growth of the organization’s products. Thirdly, the company in question may lose crucial expertise and capabilities (Collins et al. 53). This is because the business will undoubtedly miss the services of several of its long-serving workers. The departure of experienced personnel can have a detrimental impact on the company’s performance and efficiency.

Works Cited

Black, Nicholas David. “Compensating Employees in Micro-Sized Social Enterprises with Innovative HR Practices.” Employee Relations: The International Journal, vol. 43, no. 2, 2020, pp. 496-506.

Collins, Denton, et al. “The Impact of Corporate Social Responsibility on Employee Layoffs, Severance Payments, and Layoff Disclosure.” SSRN Electronic Journal, vol. 46, no. 3, 2018, pp. 1-65.

Park, Jeongdoo, and Hyun Jeong Kim. “How and When Does Abusive Supervision Affect Hospitality Employees’ Service Sabotage?” International Journal of Hospitality Management, vol. 83, 2019, pp. 190-197.