This archive report was first published on 25 June 2020.
As a manager, making tough decisions is an integral part of your role. However, laying off employees, especially those who are great at their jobs, can be a daunting task. This is especially true when the affected workers have formed strong bonds with their colleagues.
According to Mwikali Muthiani, Managing Partner at MillennialHR, 'the reason you are their leader is so that you can make tough and objective decisions during times of crisis.' When faced with the decision to lay off employees, it's essential to familiarize yourself with your organization's guidelines.
Most companies have clear criteria for implementing salary reductions to ensure that the process is objective and fair to all parties. However, if such a criterion does not exist, there are three points to consider when deciding which employees to lay off.
Firstly, productivity is a crucial factor. While your team may have had excellent results overall, individual contributions over time can reveal the weakest links. It's better to let go of poor performers and retain the strongest employees.
Secondly, consider the business needs. Are there product lines being phased off, or plans to outsource operations, or new business lines coming up? Retain employees with transferable skills that you need most.
Lastly, consider making the decision voluntary. Losing one employee who is willing to go can be beneficial, as they will eventually leave anyway, and you can retain those committed to the company's vision.
While the last-in-first-out principle may seem like a viable option, it only serves to reduce costs and doesn't necessarily mean that your longest-serving employees are the most productive.
Ultimately, make prudent decisions and be at peace with the outcome, whether you stay or leave.
Mwikali Muthiani - Managing Partner, MillennialHR; @MwikaliN
