Our company is looking at potential reductions next year for the first time and we are preparing a reduction in force (RIF) policy that could impact long tenured individuals. Curious what other organizations are doing on this to give employees additional time to look at other opportunities and/or organize their personal affairs. There is an intent to set up a tiered notification based on length of service with the company. So for example if an employee works: - Less than 5 years - 30 days notice of job elimination - 5 to 10 years - 60 days notice - More than 10 years - 90 days notice Keep in mind that our reductions will be small numbers (2-5) and will likely not trigger a WARN Act notice. We want to be respectful and considerate of our employees, but balance the needs of the organization as well. Have other companies structured a RIF policy similarly and have you provided any type of outplacement to help displaced workers?
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Head Talent Development in Software8 months ago
At our organization, while we don't have a specific Reduction in Force (RIF) policy, we conduct strategic workforce planning exercises. This approach ensures that our headcount aligns with business needs, cost considerations, and future planning. Rather than relying on a predefined RIF policy, we aim to maintain a dynamic workforce strategy that anticipates and adapts to changing organizational requirements.VP of HR8 months ago
In my opinion, several concerns should be considered before instituting a policy regarding how you notify employees - particularly if that policy is to be publicly available to employees. First, your policy should be applicable not only to this situation, where your reductions will be small but to future situations, where reductions may be quite different. For example, imagine a future RIF of an entire department, where the leader has less than 5 years, and an admin has more than 10 years. Does it make sense to provide a longer notice period to the admin than the leader? Who do you notify first? How do you ensure the message is being controlled? What if the person entitled to a longer notification period is someone already targeted for performance/attitude issues? How can you ensure that those negatively impacted don't drain the morale and engagement of others? Will they be working or looking for a new job during their long notification period? Where is the point of diminishing returns on a slow exit? Our organization believes that the purpose of a long notice period is because the individual needs to know they are being impacted in order to complete/transition work. If your organization finds itself thinking of a long working notification period as a humane way of delaying a negative impact, consider transitioning that time into a severance payment. In lieu of a policy that discusses notification periods, you may want to institute a Severance Policy, which would state what people are entitled to if there is a RIF or position elimination. Common elements of a Severance Policy in the U.S. are severance payment (either a one-time payment equal to X number of weeks or salary continuation for X number of weeks), continued health benefits for X weeks (can be different from the financial payment), and eligibility to outplacement assistance. In order to future proof your policy, consideration should be made for both years of service -AND- professional level. (Keep in mind, that finding a new position for those at higher professional levels takes longer. Severance aims to help minimize the impact and smooth the disruption for employees. As a result, it is typical to afford more consideration for professional level than seniority.)
For example:
*Grades 1-4* get a base severance payment of 3 weeks salary for their first year, plus 1 additional week for each additional full year of service, up to a maximum of 12 weeks. They are entitled to continued benefit coverage for the entire time of their severance period and will receive COBRA afterward. They will also be eligible for outplacement assistance (a tiered program that gives at 4 weeks of support from vendor X).
*Grades 15-20* get a base severance payment of 12 weeks for their first year, plus 2 additional weeks for each additional full year of service, up to a maximum of 52 weeks. They are entitled to continued benefit coverage for the entire time of their severance period and will receive COBRA afterward. They will also be eligible for outplacement assistance (a tiered program that gives 12 weeks of support from vendor X).
Your unpublished, involuntary termination process for RIFs and position eliminations can reinforce your company's intent to conduct notifications with respect and dignity and can follow certain guidelines, like:
* Managers are well-prepped by HR before notifications and have a plan for how to discuss with remaining employees
* HR is always present during notification meetings
* Where possible, notifications are delivered individually and follow a brief, set agenda
* Employees can have a 1:1 meeting with HR after receiving the news to ask more detailed questions when not in shock
* Notifications are generally avoided on Mondays and Fridays
* Employees are allowed to leave for the day upon notification but, if prudent, may return to tie up loose ends (This is dependent on the organization and their level of risk. It can also consider the person and his/her role. Clearly define the next steps/last day and err on the side of brevity for those who need to work out a notice period.)
This allows you to flex with business needs while providing a set of standards for how people should be treated during this vulnerable time.