Organizations Must Follow Five Crucial Steps When Implementing Layoffs In a Recession, Says HR Advisory Firm McLean & Company

Though layoffs should be used as a last resort, they are sometimes the only viable option and must be handled with great care by HR and organizational leaders.

TORONTO, Nov. 30, 2022 /PRNewswire/ - With signs pointing toward an economic recession, many organizations are finding themselves re-evaluating costs and resource allocation. McLean & Company, the trusted research and advisory partner for HR and leadership professionals worldwide, is recommending that organizations and their HR teams explore opportunities to upskill or redeploy employees wherever possible instead of relying on layoffs. However, to support leaders when layoffs are unavoidable, the firm has released research insights to provide business and HR leaders with the tools and best practices for laying off employees when all other options have been exhausted. The published research is an industry blueprint titled The Complete Manual for Layoffs. 

When layoffs may be the only viable option for an organization during a potentially difficult economic period, there are certain considerations and steps McLean & Company advises HR professionals consider to ensure the process is done with as much objectivity, humility, and sensitivity as possible.

"The remote work environment many organizations find themselves in adds a layer of complexity to the already sensitive process of laying off employees," says Karen Mann, vice president, HR research, learning solutions & advisory services at McLean & Company. "Layoffs and terminations are not easy for anyone involved, and the element of remote and hybrid employees can make things feel even less human and more detached. Acting with empathy throughout the process will be key in maintaining mutual goodwill and supporting both short- and long-term strategic goals."

When considering layoffs, McLean & Company recommends HR teams and leaders follow five key steps to best navigate the complex processes of reducing headcount as a means of cutting costs in response to an economic downturn:

McLean & Company's research emphasizes the importance of remembering that layoffs should be pursued as a final course of action, because even when handled with extreme care, there remains a risk of damaging the employer brand and the long-term relationship an organization has with its past, present, and future employees.

To learn more about what to do when layoffs are the only option, HR professionals can download McLean & Company's research-backed industry blueprint The Complete Manual for Layoffs.

Additional resources:

• Develop an Offboarding Plan to Manage Risk and Transition Employees Effectively
• Redeploy Your Workforce During a Crisis

For more about McLean & Company or to download the latest industry research, visit hr.mcleanco.com.

Through data-driven insights and proven best-practice methodologies, McLean & Company offers comprehensive resources and full-service assessments, action plans, and training to position organizations to meet today's needs and prepare for the future.

McLean & Company is a division of Info-Tech Research Group.

Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and Industry analysts through the ITRG Media Insiders Program. To gain access, contact pr@mcleanco.com.

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SOURCE Mclean & Company