HRM 530 Week Seven Assignment

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Strayer University, Washington *

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530

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Business

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Feb 20, 2024

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Strayer University Week Seven Assignment Dismissal Meeting HRM 530 Strategic Human Resource Management Professor Obioma Iwuanyanwu February 6, 2024 1

Layoffs inevitably create a tense environment within the organization, especially for those employees directly impacted. It is crucial to recognize that these individuals may go through a range of emotions, including feelings of being marginalized and upset. By showing empathy, we can minimize the risk of conflicts or violent incidents. Taking the time to comprehend and validate their emotions not only aids in their coping process but also demonstrates genuine concern. Additionally, clear, and direct communication is vital in mitigating negative sentiments. The more we engage in open dialogue with affected employees, providing them with relevant information about the situation, the more reassured they will feel. During times of financial crisis, layoffs may unfortunately become a reality, but it is essential to inform employees in advance so they can plan accordingly. Offering as much information as possible will help alleviate their anxiety, regardless of the circumstances. Lastly, it is crucial to create a safe space for employees to express their frustrations. Layoffs can be extremely frustrating for everyone involved, and allowing individuals to vent their emotions can greatly assist them in coping. We exhibit empathy and understanding by providing this outlet and fostering a supportive environment during this challenging period. Managers who stifle employees' emotions contribute to a negative work environment and hinder productivity. Organizing events where terminated employees can openly communicate their feelings with their managers is advisable. (1) A company experiences the impact of layoffs in three distinct manners: 1. Disengagement 2. Lower Work Quality 3. Reduced Innovation To execute a dismissal meeting effectively, the manager should follow these guidelines: 2

1. Arrange a private meeting with the employee in a quiet and uninterrupted setting, ensuring the presence of a third party as a witness. 2. Efficiently address the purpose of the meeting, being both clear and compassionate. Instead of scheduling the meeting on a Friday, consider an earlier date to allow the employee ample time to secure a new job following their dismissal. 3. Inform the employee about the specific date on which their contract will be terminated, providing a comprehensive explanation for the termination to avoid any confusion or potential legal repercussions. 4. Offer a concise overview of the termination conditions without delving into intricate details, as employees may require assistance in processing the information, particularly if the layoffs come as a surprise. 5. Provide employees with an opportunity to seek clarification by encouraging them to ask questions. Show empathy and understanding in your response, while refraining from debating the merits of the termination decision. 6. Extend personal support and assistance, without overturning the decision. 7. Address the logistics of the transition, including sharing relevant details about their severance package and facilitating the collection of any belongings if they are required to leave immediately. Coordinate with the staff to arrange for packing up after a meeting or mutually agree on an alternative time and date. 8. Express gratitude for the employee's contributions and convey good wishes for their future endeavors. (2) If a company chooses to provide severance pay to employees who have been terminated, several factors need to be considered. Firstly, the severance package should consist of a single 3

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lump sum payment. Additionally, the company should consider providing health insurance coverage for a limited period. Furthermore, the terminated employee(s) may be eligible to receive unemployment benefits while they search for a new job. While there are no specific guidelines for employers to adhere to when compensating terminated employees, the final pay slip should include the following information: a) Salary Structure A salary structure is essential for acknowledging variations in employee expertise and competence. With a well-defined pay scale, you can compensate your employees in a manner that effectively aligns with your business objectives, all while adhering to market competitiveness standards. b) Market Analysis Integrating market data and salary information into your compensation package guarantees that you are offering competitive remuneration to attract highly sought-after talent, while also maintaining a fair and reasonable compensation plan for your organization. It is essential to adhere to the company policy when calculating daily, monthly, and biweekly wages, considering the number of days the employee worked in the month. If there are any doubts regarding the inclusion of sick leave, it is advisable to reach out to the Department of Labor for clarification on the final payment(s) of the employee's contract. To establish a fair compensation program, employers should consider both internal factors and external market data. Conducting a market analysis can help identify positions where there is no competition or where overpayment may be occurring. Sharing this information with key stakeholders would be highly beneficial. 4

While it may not be positive news, it is crucial to identify and communicate areas of concern so that they can be addressed. It is worth noting that fair pay does not mean applying the same salary across the entire company, but rather ensuring that all employees are compensated in a manner that reflects their experience, efficiency, and effectiveness. This includes considering factors such as capacity and responsibility. Fair compensation entails providing an overall payment that is fair, appropriate, and proportional to the value of the work being performed. It considers various elements, including experience, skills, and education, to determine an individual's compensation. Offering competitive pay is essential for attracting highly sought-after talent while also maintaining a fair compensation package for your business. This can be achieved by incorporating salary benchmarks and market data into your compensation plan. Compensation Structure Based on Years of Service Length of Employment Position Level Separation Benefits Disbursement Amount Disbursement Date 0 – 6 Years 1 2 3 $4,000 $5,000 $6,000 A benefit plan can include the option of receiving a lump sum payment. During the time of the layoff. 6 – 12 Years 1 2 3 $8,000 $9,000 $11,000 Company benefits subtracted from bi-weekly benefits. Payments are due on the 15th and 30th of each month until the outstanding 5

balance is fully settled. 12 – 20 Years 1 2 3 $12,000 $15,000 $18,000 The severance package provides a weekly payout of $1500, encompassing various benefits as well. Every Friday until the full severance payment is made. Business owners often contemplate downsizing their workforce as a means of cutting costs. However, this strategy can lead to additional expenses for the company, ultimately undermining the intended savings. For example, the company may be obligated to provide severance packages to departing employees, compensate remaining employees for overtime work, and enlist job placement services to fill temporary support positions. Additionally, when a team member is laid off, it creates a void within the organization, resulting in various repercussions. The absence of a key team member can disrupt the overall functioning and productivity of the team, thereby impacting the organization as a whole. Moreover, if layoffs are executed on a large scale, the company may encounter even more formidable challenges. These challenges may include: a) Boosting Revenue Business owners who refrain from laying off employees tend to experience higher employee retention rates. By avoiding layoffs, senior employees are less likely to become disillusioned and 6

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leave the company. Additionally, when employees witness, their colleagues being let go, they are less inclined to entertain job offers from other companies or actively seek new opportunities. b) Diminished Customer Loyalty Implementing layoffs can have a detrimental impact on customer retention. Each customer is a valuable asset to any business, and employers must prioritize retaining them. When a company resorts to layoffs, it sends a message to customers that it is facing a crisis. With fewer employees, there may be delays in delivering goods and services, further alienating customers, and potentially leading to a decline in loyalty. c) Emotional Distress While the terminated individual undoubtedly experiences the most significant suffering, the remaining employees also endure mental strain. Layoffs disrupt the established order, forcing employees to take on additional responsibilities and form new working relationships, which can induce stress. Consequently, employees working in a state of fear are likely to witness a decline in productivity. The situation is exacerbated when the terminated employee continues working until the contract's termination date. (4) The reduction in the workforce can significantly impact the morale of the remaining employees. Witnessing the departure of their colleagues can evoke a sense of uneasiness and concern among the workforce. Separating from an employee can result in decreased productivity and engagement, ultimately affecting the overall prosperity of the organization. 7

Reference(s): 1. Clear HR Consulting Inc. July 22, 2019. How to Conduct a Termination Meeting. https://clearhrconsulting.com/blog/hr-smalltalk/conduct-termination-meeting/.. 2. Glizcel Ditto. October 26, 2020. How to Design a Fair & Equitable Compensation Program. https://hrsoft.com/design-compensation/ 3. Leanes Lowrie. October 26, 2016. How a Layoff Affects an Organization. https://smallbusiness.chron.com/layoff-affects-organization-77197.html. 4. Yabunga Julius. August 20, 2018. Dismissal meeting: Initiating a Successful Layoff. https://www.linkedin.com/pulse/dismissal-meeting-initiating-successful-layoff- julius-yabunga. 8

HRM 530 Week Seven Assignment

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