Final Assessment: Case Study 2

Renee’ A. Nolen

HRMN 400 Section 6381

Professor Gregory James

March 5, 2023
Question 1:

Whenever a reduction in force is conducted it is very important that proper planning and

a process be developed to ensure it is conducted fairly and with empathy. A successful process

requires careful planning and generally takes several months from start to finish. I would

recommend that VTI use an approach that combines early retirement, voluntary leave of absence

and a standard reduction in force. There are pros and cons with each of these options, however, if

conducted with careful planning these options can be successful. Let’s look at the merits of each:

 Early Retirement -these packages are often offered to employees who are close to

retirement age but in some cases like VTI’s it may be offered to longer tenured

employees who may be in their 40’s and are not yet considering retirement. The

benefits of this program is that it is a relatively low-cost way to reduce staff while

maintaining a level of good morale through difficult circumstances. Other

employees will see that this group is being offered retirement or severance

packages and will be taken care of by the organization.

 Voluntary Leave of Absence – this option will allow VTI to downsize by

allowing employees to volunteer to be separated in lieu of another employee who

may be slated too involuntarily separate. This option is a smart way for employers

to control layoffs while still being viewed by remaining staff as a positive option

for reducing staff. Since this personal leave of absence policy is voluntary,

companies extend this benefit as a form of generosity. Businesses that offer this

additional leave are demonstrating their interest in a worker’s well-being. As a

result, employees feel valued by their employer, increasing their dedication to not

only their job but to the company overall (HR, 2020). An additional benefit of
 using this option for the employer is that the rules of voluntary leave are a bit

more flexible than other options giving VTI more flexibility into how they

conduct this project. For example, job protection is not a requirement of this

option, meaning, if an employee volunteers to leave there is no guarantee that

they will get their job back in six months or a year if conditions in the

organization improve.

 Reduction in Force – a standard reduction in force will also be necessary for VTI

and should begin with the contingent workers. If possible, the RIF’s can start with

employees who are not full time to minimize employee dissention and maintain

morale (HR, 2020). However, the full-time employees generally garner more of

an expense for the employer due to salary and benefit packages. These employees

should be included in the RIF but should be based on criteria, such as job

performance, for example.

Question 2:

As discussed in the case study there are several options to consider when determining

the employees that will be selected in a RIF. It’s very difficult to implement this program

without there being some potential impact for legal action, however, it will be important for

VTI to determine the selection criteria and develop a procedure for handling all layoffs. There

are several options to consider beginning with merit-based selection. This option would be

deployed with all three of my proposed criteria and it would be my first choice. This helps

employers weed out poor performers and reduces the cost of severance and benefit packages

that may result from other methods used (Brown, n.d.). The next method could be based on the

skills of the employees. An employer can evaluate the skills necessary to do the job and what the
requirements will be to continue production once the staff reduction is conducted. This can be

tricky because an employer must be cautious not to use “age bias” as a discriminatory factor in

this method, even if they didn’t mean too. Another option would be to consider a seniority-based

selection, which could be criteria under the standard RIF but would not apply to an early

retirement or voluntary leave of absence criteria. This method is believed to be one of the

simplest options because those employees who were hired last will be the first to go (Brown,

n.d.). There are no real best answers for a reduction in force but care should be taken to choose

the options that propose the lowest amount of potential legal concerns and to choose options that

show the greatest amount of humanity and empathy to staff.

Question 3:

If an employer has a good process and well documented performance discussions, laying

off poor performers is a good first step in choosing who fire. First, there should be solid written

documentation that the employee has been experiencing performance issues.  A RIF should not

solely be used to manage performance issues. Laying off employees with performance problems,

who are in necessary positions, may create problems for the company, care must be taken to

ensure discrimination is not something an employee can claim (JOSSO 2 by Atricore, n.d.-d).

Jenna should conduct an extensive review of performance records for every member of the

impacted team. This should include all materials related to employee performance and can

include performance evaluations and anyone on a performance improvement plan (How to Lay

Employees off Because of a Lack of Performance, 2017). In addition, VTI should review

attendance records, disciplinary actions, and any documented management feedback available

for all potential impacted employees. Last, Jenna should work with the middle managers who

have responsibility for impacted teams and create a checklist documenting what criteria is being
used to evaluation performance. Once this is completed a ranking system can then be used as a

way of identifying the worst performers.

Question 4:

There are no “guarantees” that legal action can be avoided during a RIF however, organizations

can limit their chances by carefully planning and by working with legal counsel to ensure that the

appropriate documentation is in place. First, the VTI HR team should draft a written business

justification that highlights the need for the staff reduction. This should be established in writing

and should provide the business-related objectives by conducting the RIF (Fox & Clark, 2017).

The information that should be included in the justification should list the following:

 Structure of the business

 Company’s future goals

 Why the RIF is necessary?

 What alternatives were considered?

 What is the selection criteria?

Once the documentation is complete it will be important to train the management staff on the ins

and outs of the process to make sure everyone is on the same page. VTI cannot risk a rogue

manager running around doing something other than what was prescribed. Additionally, ensure

that communication is made to all employees, even those not impacted to reduce the chance of

miscommunication and the spread of rumors (Fox & Clark, 2017). Last, to mitigate risk VIT

should ensure that release agreements and severance documents adhere to government

guidelines.
Question 5:

The communications drafted to the impacted employees and to all staff are lacking

information. First, the communication to the impacted group simply states that their job has been

“affected” but is not clear in stating they are being fired nor provides a detailed reason for their

firing. Next, the employees are only being given three weeks to find alternate employment in the

company before they are released, this is not enough time and could present some legal

challenges. The communication should have started with the company’s appreciation for their

service and dedication to the organization which comes towards the end of the communication.

Additionally, the impacted employee notice is confusing because it starts by saying they will

have 3-weeks to find other roles but then says they will be let go after six-weeks. This needs

clarification and more details.

The “all employee” communication addresses the layoffs but does not speak to how

production will continue once these layoffs are completed. Employees who will be remaining

with the team will want to know if production standards will be changed and how their normal

work will continue.

Overall, I think the decision to send a communication was necessary but also seemed

impersonal. I would not appreciate getting a letter to let me know I am being laid off without

talking to someone face to face first. HR and Management should conduct meetings with staff to

discuss why they are being laid off, how the procedure will proceed, and how the company will

assist them in seeking another job inside the company or with another organization.

Question 6:
 An employer that has just gone through a layoff needs to take care by communicating

with the remaining employees regularly. They should be authentic and genuine with

communication, and it should be done with compassion. VTI needs to understand that employees

will have questions about the layoffs and open-door policies should be implemented for those

employees that want to talk. Managers can leverage one on one meetings to create space for

themselves and their employees to clear up any confusion and provide reassurance to remaining

staff (Stange, 2022). VTI should also take care to maintain engagement levels by hosting

frequent team meetings and discussions and by temporarily increasing one on one sessions to

keep employees engaged and productive. The management staff should also look for

opportunities to hold team builders and potential “off-campus” events to keep remaining

employees bonded during the layoffs and after. One additional suggestion would be to deploy

employee surveys to gauge team morale and allow employees a safe space to air grievances and

discuss concerns (Stange, 2022).

Question 7:

A layoff can have negative impacts on production, employee engagement and overall morale.

Remaining employees should understand that productivity must continue, even with reduced

staff and new guidelines for performance standards should be communicated. VTI should

consider engaging the employees to help develop innovate ways to do more with less. Employers

can help keep folks on track by setting short-term goals and by letting the know who their

contributions will impact others on the team. Taking part in innovation and learning how their

work impacts others often can keep employees engaged during difficult times (Stange, 2022). In

these instances, employers need to begin to reevaluate expectations and revisit how they will

continue to meet their customers needs. When headcounts are lowered teams and managers need
to figure out how they will do more with less. Lastly, VTI managers need to realize that their

teams are smaller which means they each have a larger stake in their professional development.

If employees are going to be expected to take on larger expanded roles, managers need to use

that time to ensure staff is trained, expectations are clear and set goals for productivity that are

attainable to set teams up for success.

References:
Stange, J. (2022, July 13). 5 Ways to Boost Employee Morale After Layoffs.

https://www.quantumworkplace.com/future-of-work/boost-employee-morale-after-

layoffs

Fox, S. F., & Clark, J. C. (2017, July 6). 5 Ways to Limit Legal Liability After a Reduction in

Force (RIF). randstadrisesmart.com. Retrieved March 5, 2023, from

https://www.randstadrisesmart.com/blog/5-ways-limit-legal-liability-after-reduction-

force-rif

How to Lay Employees Off Because of a Lack of Performance. (2017, November 21). Small

Business - Chron.com. https://smallbusiness.chron.com/lay-employees-off-because-lack-

performance-24299.html

JOSSO 2 by Atricore. (n.d.-d). https://www.shrm.org/resourcesandtools/tools-and-samples/hr-

qa/pages/(rif)selections.aspx

Brown, A. (n.d.). How Do You Choose Which Employees to Layoff?

https://blog.careerminds.com/how-do-you-choose-which-employees-to-layoff

Hr, T. (2020, August 13). Pros and cons of voluntary leave of absence policies. Triton HR Blog.

https://www.tritonhr.com/blog/pros-and-cons-of-voluntary-leave-of-absence-policies/

Heathfield, S. M. (2021, February 24). The 5 Goals of Employee Performance Evaluation.

LiveAbout. https://www.liveabout.com/employee-performance-evaluation-goals-

1918866
Indeed Editorial Team. (2022, July 21). Pros and Cons of the Pay-For-Performance Model.

indeed.com. Retrieved February 18, 2023, from

https://www.indeed.com/career-advice/pay-salary/pros-and-cons-of-pay-for-performance

Advantages And Disadvantages Of Ranking Method - 774 Words | Cram. (n.d.).

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P3XCNUAZ7MQW#:~:text=The%20advantages%20of%20the

%20individual,organizations%2C%20it%20is%20not%20applicable.