Persuasive Essay: Layoffs within a Company
Prudence Blackman
COMM/215
October-13, 2014
Dr. Stephanie Lyncheski

Persuasive Essay: Layoffs within a Company
The decision to lay off employees cannot be the easiest for companies. There is a variety of different reasons why employers layoff their employees, and the laws in many states allow them to at any time as long as the reason does not contravene state or federal law. Being let go from your job can happen by firing or layoff, and though neither is, usually, desired, the layoff is typically the method that carries less of a stigma. Firing occurs with one worker for any reason that, usually, involves job performance, unethical behavior or personality differences. Meanwhile, a layoff, usually, occurs with more than one worker for more impersonal reasons involving business or economic decisions. Regardless of the reason, companies must take great care in the way they conduct a layoff to avoid legal ramifications.
Even though, layoffs can cause low morale amongst employees, companies have to use layoffs, as a way to optimize labor costs, staff reduction, and relocation. In addition, it is also necessary for the event of mergers or buyouts but it is necessary to aid in the restructuring of the company in hopes to regain financial stability.
Cutting Costs
The most common reason for being laid off is the company needing to cut costs in some way. This need could stem from debts that have to be paid off or lack of profits, because of a drop in sales, or loss of a line of credit. However, there can be financial consequences from the layoff itself if not done properly, such as the cost of lawsuits or severance packages. More intangible costs to the company's bottom line can result in the form of low morale or lower productivity of workers.

Staff Reduction
Workers may be laid off if positions have to be cut due to over-staffing, outsourcing tasks or a change in roles. A desire for eliminating redundant tasks in the interest of efficiency might also cause a loss of positions. Cutting staff may or may not be related to cost cutting, depending on other factors, such as new leadership and a change in direction for the company where positions are redefined. Layoffs due to staff reduction might affect the entire company or only certain departments. Expansion in some departments, such as in manufacturing, and shrinking in others, like marketing, could mean that some personnel need to be axed in order to accommodate the increased needs of the growing departments.
Relocation
Relocating a company's entire facility or one location of many could also cause a company to lay off its workers. Shutting down an original location, however, can have a huge impact on the surrounding community's economy and morale. Therefore, if massive layoffs are done due to relocation, the company must show genuine concern for these workers and provide resources to help them adjust or else risk damaging the company's public reputation.
Mergers and Buyouts
If a company is bought out by or merges with another company, the change could also cause a shift in leadership and corporate focus and direction. Different personnel often means new goals and business plans, which might require layoffs. In this case, objective criteria such as seniority, length of time with the company, or proven productivity numbers are likely to determine which to judge lay which workers off first, since new personnel have a more distant vantage point. Finding an easy way to avoid having to make cuts or Layoffs is not an easy task because they are so many factors that are beyond the company's control. However, they can be tactics used to prepare employees that may not affect the morale with the other workers. For starters, practice communicating clearly and often with the employees. The more you can tell them what is going on, the more confident they will feel simply from being in the loop. Employees understand that layoffs are a reality during lean financial times; they just want to know what to anticipate so they can plan accordingly. The more you can provide them with the peace of mind that comes with knowing what is going on, the more there will be in the office. Involve employees in brainstorming for solutions. Even if layoffs are inevitable, there will be a ripple effect through the office, including the possibility of an increased workload for many individuals. Get the employee's input on this process and allow them to have a say in how those new responsibilities are addressed. The more you make them feel they have a voice, the more loyal they will be through difficult times (Zatzick, Zhoa, & Tingling, 2014).
In an article “Layoff: A Four Letter Word in the Economy” Martin (1998-2014) states that, “It has been difficult in recent years to find good people. However, sometimes it is better to have a position vacant than to hire poorly especially in management. One bad manager can take down tens to thousands with them” (Martin, 1998-2014, para.10). Maintain a flexible workforce, “hire contractors for short-term needs, and hire temporary or seasonal help for short-term work. Hire part-timers who are willing to work only during the peak periods of need. Offer job-sharing options to current employees” (para11). Create a contingency plan. It is better to have well thought out and developed plan over a quickly devised scheme. “It is also much better off to have a plan to review if something bad happens than to have to invent something in the heat of a crisis”(Martin, 1998-2014, para.11).
In conclusion, Layoffs within a company is never an easy decision to make. Oftentimes, it is the only option a company may use for survival. However, implementing tactics and solutions prior to making a decision is vital because it will show employees that the decision was unavoidable after all prevention attempts made. Ultimately, by doing this employee morale is unaffected.

References
Martin, S. (1998-2014). Layoff: A Four-Letter Word in Any Economy. Business Solutions the Positive Way, 1, 10-12. Retrieved from http://www.positive-way.com/business/a_view_of_layoffs.htm?&session-id=8472ec4f011837241cc0534847bdb9eb
Zatzick, C.D., Zhoa, B., & Tingling, P. M. (2014). Avoiding Layoff Blunders. MIT Sloan Management Review, 55(3), 12-14. Retrieved from http://http://search.proquest.com/docview/1514708615?accountid=458