LAYOFF & RETENTION BONUS

owenlady

We are looking at the very real possibility of having to reduce our workforce by perhaps 1/2. Not having worked on this issue before, I was wondering if some of the very knowledgeable experience here at the forum had any ideas, programs, help they could share.

We want to keep everyone through 12/31 and know that some folks may start looking and wanted to provide some sort of expanded severance package and/or incentive to retain these employees, then going forward, we would want to have a more enhanced retention plan for those positions that are identified as crucial to the business and which we want to keep to various lengths beyond 12/31 and some for the unforseeable future.

Has anyone worked on a plan such as this they would share.

Then, I wondered if anyone has criteria they've successfully used to determine who is laid off if it is done by anything other than seniority?

I would appreciate any assistance you could provide.

You could email me at [email]carole.owen@bgfh.com[/email] or fax me at 859-268-3571.

Again, thanks.

HR in CA

While I have nothing in writing, this is what we did at my last employer:

The entire plant was closed, the first thing we had to do was notify certain city, county and state agencies based on the WARN Act. We had to pay employees 8 weeks as mandated by WARN, but we were flexible enough to let those who found other employment go and worked those who had not found other work.

A team of about 15 were designated as the closing team. We were paid a bonus equal to our salary, so for me it was an easy choice to stay. I stayed 90 days past the announcement date assisting employees with their paperwork, etc. Our severance was 2 weeks for each year of service offered in either a lump sum or in payments. Our health insurance continued through the end of our severance. Once our severance was over we were offered COBRA, but most of the 15 had landed in other employment. The closing team were also offered enhanced out-placement services, resume writing, career coaching, etc.

All in all it made the reality of losing my employer of 10 years a bit easier to take. The decision to close the plant was made just days before the September 11, 2001 terrorist attack, after that losing my job didn't seem like a big deal at all.

Good luck, this can be a very emotional time for both the half staying and the half leaving. Take it one day at a time.

owenlady

Thank you so much for your answer and for the encouragement.

Having worked with our employees since '97, or at least many of them, my heart hurts to be facing this. Well even if I didn't know them, my heart would hurt. When I've had to assist in terminations for performance or related issues I never forget it is someone's life we are dealing with and though it can't be helped, I won't forget that now.

And I so want to be as well informed as possible to ensure we do this as well as we can.

hrbanker

We are being acquired by another organization. They offer retention for critical positions. In spite of that, we have had employees walk away from up to 6 months of pay for a full time position elsewhere.

Just be prepared for some of your most important employees to leave. Having a backup plan for each department is a good idea.

GinnyP

>We are looking at the very real possibility of
>having to reduce our workforce by perhaps 1/2.
>Not having worked on this issue before, I was
>wondering if some of the very knowledgeable
>experience here at the forum had any ideas,
>programs, help they could share.
>
>We want to keep everyone through 12/31 and know
>that some folks may start looking and wanted to
>provide some sort of expanded severance package
>and/or incentive to retain these employees, then
>going forward, we would want to have a more
>enhanced retention plan for those positions that
>are identified as crucial to the business and
>which we want to keep to various lengths beyond
>12/31 and some for the unforseeable future.
>
>Has anyone worked on a plan such as this they
>would share.
>
>Then, I wondered if anyone has criteria they've
>successfully used to determine who is laid off
>if it is done by anything other than seniority?
>
>I would appreciate any assistance you could
>provide.
>
>You could email me at [email]carole.owen@bgfh.com[/email] or
>fax me at 859-268-3571.
>
>Again, thanks.