Tips & info

Planning a Staff Reduction?

May 2009

When planning for a staff reduction, the following can be considered to avoid unnecessary unemployment costs:

  • Job positions that become open could be left unfilled for a time and later offered to employees who might otherwise be laid off.
  • Help your departing employees find new positions. Some nonprofits help employees prepare resumes, give them paid time off to go to job interviews, and even send notices and recommendations to other organizations about the talent they have available.
  • Be aware that the laws vary from state to state, so advance research is important. In some cases, managers have calculated their savings by assuming that if they give severance or vacation pay, the worker will be ineligible for benefits. This may or may not be true, depending on your state, so check with the claims manager at TALX UCeXpress, Paul Fountain.

The following options are available, if a layoff is unavoidable:

  1. Contact your Claims Manager, Paul Fountain, prior to committing to any plan. He can advise you on what your true costs might be by estimating unemployment costs. You can reach him at (800) 955.4351, ext. 7.
  2. Review your reserve account to determine if you need to make additional deposits to cover the costs. If you have questions about this, contact Terri Oakley at (800) 442.4867.
  3. Contact HR Services for advice on how to limit liability when implementing a reduction in your workforce. They can provide guidelines on when and how to inform staff, sample communications, forms and checklists; and state and federal regulations regarding the WARN Act notices. You can reach them by accessing the HR Services hotline at (800) 358.2163 or email hrservices@501c.com.

Register now for our free training Webinars for you and your supervisors at:
http://www.501ctrust.org/eventsnews/workshops/index.php