Laying off workers requires tact, care

By Joyce M. Rosenberg
Associated Press

In recent weeks at many small companies, employers have had to decide how to handle letting workers go because of slow business. Then they had to learn how to deal with those workers who were kept on.

It might seem more humane to give laid-off employees advance notice rather than have them leave immediately, but that doesn't take into account how high emotions can run, said Alan Cutter, CEO of AC Lion Inc., a New York executive recruitment firm.

The company needs to be protected from what an angry employee might do, such as damage equipment or data.

"The best way to lay off is to do it that day — although it's a very harsh way to do it," said Cutter, who's had to lay off about 20 percent of his staff.

Mary Pisarkiewicz found out the hard way what can happen when a departing employee looks for revenge.

Pisarkiewicz, a founding partner of Pisarkiewicz Mazur & Co. Inc., said a dismissed receptionist managed to very quickly get into the consulting firm's database of clients and delete it.

"It took us months to piece it back together," she said. Her advice to business owners: "You've got to go out there with them when they pack up their desk — as horrible as it sounds."

There's probably little you can do to soften the blow, but Cutter suggests telling employees "it's not them, it's the business."

Glenn Diehl, of Skyline Displays Manhattan Inc., suggests meeting with remaining employees, keeping the sessions upbeat and giving workers an incentive to keep going.

He recently held a pizza party for his staff, and talked about plans for the company's holiday party and next year.

Diehl told employees that while the company would close for Thanksgiving week without pay to save money, "if we hit our sales goal by June 30, we will rebate everyone the week's pay."

"We plan to succeed next year," he said.

It's probably a bad idea to tell employees there won't be any more layoffs. Diehl did that earlier this year and turned out to be wrong. He said his credibility suffered.

As you deal with layoffs, you also need to have some compassion for yourself. Laying people off is one of the most stressful things a business owner or manager has to do, particularly when the employees are likable and productive.

One way to make the process easier is through timing, Pisarkiewicz said.

"Never do it on a Friday ... it's really terrible for the employee," she said. "Monday's too shocking. ... Don't do it first thing in the morning — it's so evident and obvious and not good for the other employees."

Her suggestion is to deliver the news at midweek, such as Tuesday or Wednesday, at a time like 3 p.m. And if you feel squeamish, know that you have a lot of company — other bosses are in the same situation.

"I've been in business for 22 years and it never gets easier," Pisarkiewicz said.