en-us http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/ Comments from The Right Way to Lay People Off http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment103469497hi mitch, just what I was thinking while I was reading this (really!) fantastic article. always make sure that the company can only turn to better performance if the right people carry it on their shoulders and are able/willing to change things Mon, 11 Oct 2010 13:27:20 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment103469497 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment102653767Excellent, well thought out and developed post. I appreciate the time you took to write it. Thank you! Wed, 6 Oct 2010 14:48:16 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment102653767 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment102521265Great post.. I would add one step.. somewhere in the middle of this process.. identify and contact your best employees and reaffirm their value to the organization! Reinforce the challge you are facing and that they do not have to be concerned. I would also suggest that do it quick and all at once if possible. Tue, 5 Oct 2010 19:24:34 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment102521265 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment101274439Ben another fantastic post. I have already forwarded this post on to a few friends and a management professor friend of mine. One thing I would add to this that may seem counter-intuitive is not have a layoff policy. Every organization I have worked in that had a layoff policy changed it within a few days - months before the eventual layoffs. Not only did it foreshadow what was coming and create angst, which runs counter to Point 2, but also created a bad taste in those who were let go and the "survivors" mouths. Layoff policies are created in good times and get ransacked when their actually called upon. Tue, 28 Sep 2010 02:14:50 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment101274439 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100729672Thank you for this article. What is the other person _has_ failed? What if you're firing somebody because they did a poor job? I'd love to hear your advice on that one. Fri, 24 Sep 2010 17:22:16 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100729672 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100420330well said...... Wed, 22 Sep 2010 19:48:11 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100420330 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100411258Ben, This is great advice that companies should follow. It's even more critical for small and privately owned companies. The layoffs that you do will also resonate in your community. You have to face people who lost their jobs with you in church or at community events. If people understand that it is a situation of laying off people so the company could stay alive or keep people on and going out of business later and destroying the jobs for every employee, it helps a little. I will say that Up in the Air was emotionally difficult for me to watch. Wed, 22 Sep 2010 18:54:40 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100411258 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100374299I was recently asked (in an interview...) whether I found it easier to lay people off or fire them. I said laying them off was more difficult - because if I am firing someone there is cause and if I did my job right there was a number of advance notices. Laying folks off with integrity and honesty is important to keep both the people staying and the people leaving engaged. I think your point of ensuring everyone understands that it is a company issue is very important, as many people will always feel like they are being singled out. I think it is important to be organized (as said) so people know what to expect and they have information available. They should also have contact information for asking questions. Follow up meetings from the CEO need to focus on next steps with the remaining people, more than once over the next couple of weeks to ensure that the strategy doesn't fracture. Managers need to re-inforce this message (and believe it themselves) if the business is to succeed. Wed, 22 Sep 2010 15:34:38 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100374299 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100338754It is rather disheartening and frustrating to see your friends get laid off (or be told that there is no money for raises for us peons) when you know that the management is taking home so much money and wasting money on new toys. Wed, 22 Sep 2010 11:56:24 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100338754 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100262943You need to be careful about punishing the guilty (as tempting as it may be). The company has to be able to go forward. The optimal way to do that is generally with competitive compensation for your best people even if they happen to be managers and execs. Tue, 21 Sep 2010 22:33:59 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100262943 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100262765Good point and that's a whole other topic. From the packages that you design to the effort that you put into placing the employees. Tue, 21 Sep 2010 22:32:32 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100262765 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100262629Generally the best way to do it is to lay them off then have them lay their people off. It's tricky, but that works best. Tue, 21 Sep 2010 22:31:11 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100262629 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100240430I'm curious, how do you handle the managers that you're laying off? Who delivers the news to whichever of their direct reports you're laying off? Tue, 21 Sep 2010 20:12:40 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100240430 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100230277Excellent post. Well written. In my first year with PTC, I went through 5 RIF's (reduction in force ... aka layoffs). From what I witnessed PTC seemed to handle them well. Company performance had, indeed, failed. At the same time we stoked the fires of what the company could be by getting behind a serious transformation effort. It helped build morale and create momentum for those that remained. Like Loudcloud/Opsware, PTC bounced back from difficulties to become a multi-billion-dollar company. Tue, 21 Sep 2010 18:58:10 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100230277 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100222598I was laid off from my company in the worst possible way. I was sick and still got called to office where the HR guy along with my manager told that they were sorry to let me go. I hope they read this article and learn. Tue, 21 Sep 2010 18:37:00 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100222598 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100219252I couldn't agree with this more. Senior execs and management are the ones who will reap the most reward in the long-run, so I believe that in the short-run bonuses and salaries should be slashed. Tue, 21 Sep 2010 17:44:14 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100219252 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100212986Color me completely surprised that there isn't an additional step titled "Treat your laid off employees fairly" that outlines some basic parameters of the right way to treat an employee post-separation. It's not sufficient to simply "be fully prepared with all of the details of the benefits and support that the company plans to provide" if said benefits and support are no good. That info trickles back to existing employees and trust in management suffers greatly. Tue, 21 Sep 2010 17:03:59 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100212986 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100207312Ben, I have no experience of this myself, but I think you might have missed a single point - top execs and lower management need to get their compensations slashed. Otherwise it's impossible to be honest or open. Tue, 21 Sep 2010 16:20:24 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100207312 http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100199081AOL had (has) a culture of layoffs for years and years going back to the '90s, partly to clear under-performers I suppose but also because of the revolving door of execs with "the next big plan." Thousands and thousands were sent packing (I lived through about 12 rounds of layoffs) And during that time growth exploded up until the acquisition of the largest media company in the world. Just an observation. Tue, 21 Sep 2010 15:18:30 +0000http://benhorowitz.wordpress.com/2010/09/21/the-right-way-to-lay-people-off-2/#IDComment100199081