Employees And Employees For The Layoff

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Layoffs are an inevitable part of any business that affects both employers and employees. Companies usually decide to do layoffs when they have financial difficulties; financially troubled companies reduce the number of employees to cut their costs and generate profit. Laying off employees is one of the toughest decisions that management has to make. Employee reduction is a decision that must be made carefully and with caution because it involves not only legal issues, but also affects morale in the company.
If an employee is laid off based on the subjective criteria such as the supervisor’s opinion about the employee’s characteristics, the employee can take legal actions against the company. Therefore, the company must use objective and quantifiable criteria such as the yearly evaluations, productivity, or seniority to base its decision of whom should be laid off. Also, to prevent legal issues, a company must have policies, procedures, and layoff criteria in relate on how to choose employees for the layoff. The policies and dismissal rules must be consistent across the company to preserve morale and prevent favoritism.
Layoffs affect morale in the company; when employees feel layoffs are unfair or not justified, it decreases their trust and loyalty and increases their resistance to the change. Therefore, in order to keep morality at the high level, the company should be honest about the reasons for the layoffs. Layoffs should not come as a surprise to employees;
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