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Reductions in Force: What About Those Left Behind?

Reductions in Force: What About Those Left Behind?

Tips to Maintain Employee Morale and Motivation

Philadelphia, Pa. – April 15, 2009 – Practically no industry is immune to the recent financial pressures that have forced layoffs throughout the economy.  Despite crunching the numbers and considering alternatives, often an employer is forced to conclude that layoffs are necessary to keep the business afloat. 

Employers must focus on determining which employees remain vital to execute the company’s critical functions, ensure that protected classes are not disparately affected, notify affected employees in advance as required by federal and state WARN Acts, and have a plan for discharging those employees that maximizes their human dignity and minimizes disruption to business operations, according to Pepper Hamilton LLP, a multi-practice law firm.

“Employers should also consider their remaining employees, who will watch their friends and colleagues lose their jobs,” said Michael J. Canavan, a labor and employment attorney in the law firm of Pepper Hamilton LLP (MailScanner has detected a possible fraud attempt from "releases.buchananpr.com" claiming to be www.pepperlaw.com). “It’s critical to ensure that your remaining employees maintain their morale, and that they stay motivated under the pressure of trying to maintain operations with a decreased workforce. This is a critical, but often overlooked, aspect of any downsizing plan.”

Canavan suggested employers consider these points to get the most out of employees in difficult circumstances:

1.  Carry out downsizing respectfully.  Nothing can poison employees’ morale 
     faster than watching their former colleagues be shown the door abruptly 
     and disrespectfully. Remaining employees will wonder when their turn to be 
     so treated will come.  When downsizing, help maintain the dignity of those 
     who are losing their jobs by:

    -- Notifying them of the decision in private.

    -- Allowing them to say goodbye to their colleagues and transfer their 
        responsibilities in an orderly way.

    -- Providing them, if po