How to Determine the Criteria for Employee Layoffs

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If you are in the unfortunate position of having to lay off workers, it is important to determine the criteria for employees layoffs carefully to avoid making mistakes.

The best way to decide on criteria for employee lay offs varies from company to company, based on factors such as number of employees, projects being worked on, pay scale, employee overlap and more.
Read the steps below to help your company come up with fair and justified criteria for employee layoffs.

Instructions

1. 1
   Consider the legal implications of laying off an employee - Some employees might have legal reasons why they cannot be laid off or need extra warning or benefits in doing so. These employees could include pregnant females, minorities, disabled, etc. Speak to a lawyer to determine if any restrictions apply to your company.
   
2. 2
   Consider the employee's general attitude - Most companies would agree that one of the most important criteria for employee layoffs is the employee's attitude. This includes the employee's work ethics, moral, flexibility, team playing skills, job motivation, etc. An employee who is generally difficult to work with is often the first to go. Not only is this employee not productive, but productivity of fellow workers also slides when (s)he is around.
   
3. 3
   Consider the employee's usefulness - Unfortunately, some employees are more useful than others. This could be because of job function (some functions are just less useful in the company) or because of the worker's personality. Some workers are more willing to take on additional tasks beyond their bare minimal job descriptions - these employees will be especially useful after other workers are laid off.
   
4. 4
   Consider the employee's skills - Does this employee have skills that are unique or does this employee have skills that are duplicated by many other staff members.
   
5. 5
   Consider the future of the company - Which projects is the company focusing on now and in the future? Is the employee that you are considering laying off a main player in one of the future projects or is (s)he mainly involved in a project that is dying out? You may want to transfer important employees from one project to another, but this consideration is still part of the criteria for employee lay off.
   
6. 6
   Consider the employee's pay in comparison to his/her usefulness - Is the employee being overpaid relative to their amount of contribution? Some employees are very talented and worth a lot of money, but they are not used to their full potential and are therefore not worth their high pay. Other employees may be receiving a very high pay but are a key employee in the company and are therefore worthwhile to keep on.
   
7. 7
   Consider when the employee was hired - Newly hired workers are often the first to let go when company layoffs are performed because they have contributed the least to the company and will be missed the least. However, criteria for company layoffs should focus not just on newly hired workers, but on how long all workers have been at the company. Ethically, some companies might want to keep on employees who have been at the company many years because of the employees' contribution in the early days and a feeling that laying them off would be a lack of gratitude. Although years at the job is not the only criteria, this combined with other criteria is important to consider.
   
8. 8
   Consider trade secrets an employee might have - Some employees are valuable because they hold knowledge about your company or corporation. Some are valuable because they have a unique skill that cannot be easily replaced.

Read more: How to Determine the Criteria for Employee Layoffs | eHow.comhttp://www.ehow.com