Virtual Layoffs: A Guide for Employers

The rising popularity of remote work and virtual operations has transformed the operation of a modern workplace. Various work-from-home arrangements and remote working policies have constantly been emerging, but the transition to a fully remote workplace is still too early to be called mature.

With remote work becoming a ubiquitous demand of every employee and the new norm of work in the current era, the way that layoffs and terminations are handled virtually has quickly turned into a burning issue urged to be solved— and Pacific Prime is here to address this issue in-depth.

The Debate of Virtual Layoffs

There is nothing wrong with virtual layoffs on its own. Its impersonal nature could be brutal to employees and stakeholders who are impacted, but it is understandable for employers to choose this pathway for a remote workforce who prefer the comfort of working at home over traditional office settings.

Leaving that aside, virtual layoffs that have been done so far could be handled more humanely— we’ve seen HRs’ cameras off, chat function disabled, follow-up questions disabled, a lack of coordination between departments in the case of a university ESL teacher layoff.

To be fair, layoffs are inherently dirty jobs that executives, managers, HRs, and directors have reflected as the worst aspect of their responsibilities. Nonetheless, the termination process results in emotional, psychological, financial, and physical distress such as anxiety and frustration.

Other potential emotional reactions to unemployment include:

• Disbelief
• Loss of enjoyment
• Feelings of worthlessness
• Fear
• Anger

Delivering bad news over a computer screen exacerbates the discomfort of the unemployed, and the added probability of signal delays, and inability to make eye contact and communicate in a sincere tone, has made the communication process even more complex.

Digital communication hasn’t been made to the point where it could rival body language and physical gestures. While we wait for new tech to emerge in the virtual communication landscape, here are some tips to soften the interaction and make the process easier for both employers and employees.

Tips to Do Layoffs Remotely For Employers and HRs

The basics of doing layoffs remotely for employers and HRs are to be personal, confidential, clear, and transparent throughout the process.

Be Personal and Confidential

• Schedule one-on-one video calls:
  • Avoid group meetings or impersonal methods like email or text
  • Use video calls to maintain a human connection
  • Ensure the employee can see your face and read your expressions

• Maintain strict confidentiality:
  • Inform only those who need to know about the layoff beforehand
  • Use secure, company-approved communication channels
  • Remind the employee that the conversation is confidential
  • Avoid discussing details of individual layoffs with other employees

• Follow up personally:
  • Send a personal email after the call to reiterate key points
  • Offer to be available for follow-up questions
  • Consider a personal check-in call a week later

Be Clear and Transparent

• Explain the context:
  • Provide a brief, honest explanation of the business reasons for the layoff
  • Share relevant information about the company’s situation
  • Avoid placing blame or making promises about future re-employment

• Provide specific details:
  • Clearly explain the effective date of the layoff
  • Discuss severance package details, including duration and amount
  • Explain what will happen to benefits, including health insurance
  • Describe any outplacement or career transition services being offered

• Allow time for questions:
  • Pause frequently to allow the employee to process information
  • Encourage questions and provide honest answers
  • If you don’t know an answer, commit to finding out and following up

Steps to Conduct a Humane Virtual Layoff

There are several considerations at different stages when conducting a humane layoff such as communication strategy, legal requirements, privacy concerns, and giving appropriate follow-up support.

Preparing for Virtual Layoffs

Before initiating any layoffs, it’s crucial to lay the groundwork:

1. Review legal requirements and company policies to ensure compliance.
2. Develop a clear communication strategy that addresses all stakeholders.
3. Prepare necessary documentation, including severance agreements and benefits information.
4. Train managers and HR staff on virtual layoff procedures to ensure consistency.

Conducting Virtual Layoff Meetings

The actual layoff process requires careful planning:

• Choose appropriate communication tools that ensure clear audio and video.
• Schedule individual meetings to maintain privacy and allow for personal discussions.
• Ensure privacy and security during the process to protect sensitive information.
• Have IT support on standby to address any technical issues promptly.

Informing Employees about the Layoff

When it’s time to inform employees, clarity and empathy are key:

• Start with a clear and direct message about the layoff decision.
• Explain the reasons for the layoff, focusing on business factors rather than personal performance.
• Provide details on severance packages and benefits continuation.
• Allow time for questions and address concerns honestly and compassionately.

Supporting Affected Employees

Offering support can ease the transition for laid-off employees:

• Provide resources for job search and career transition assistance.
• Make counseling or mental health support available.
• Maintain open lines of communication for follow-up questions or concerns.

Considerations for Virtual Layoffs

Layoff is not a mere process of contract termination, employers and HRs need to take into account the perspectives of the company’s reputation, existing employee morale, and company data security amidst virtual workplace settings.

Company’s Reputation

It makes sense to keep your company’s reputation in check. An inhumane layoff reflects how you treat your employees will negatively influence your brand name. The terminated employee will then turn to platforms like Glassdoor and leave you a negative review.

Don’t underestimate the influence of such reviews. A study has found that over 83% of job seekers are likely to base their decision on where to apply on company reviews, and roughly 50% consider the company’s reputation heavily before accepting a job offer.

This underscores the importance of implementing good virtual layoff practices to make the employee feel supported and comfortable as much as possible.

Existing Employee Morale

When an employee is dismissed within a team, remaining team members can suffer from a noticeable lapse in motivation and morale— having survivors’ guilt while worrying if they are going to be the next one in the team to be terminated.

Adding to that, team members will be afraid of the increased workload as the responsibility of the dismissed member is transferred and distributed among them.

It is best to assure the rest of the team through transparent communication to address their potential concerns and consider making increased efforts in acknowledging and recognizing the contribution of all employees to enhance their morale and ultimately performance.

Company Data and Information Security

As we are making significant strides toward a virtual workplace, it is likely for employees to have access to the employer’s I.T. and information systems through work laptops that the company provides.

Disconnect the dismissed employees from your internal network following the meeting and contact with them through their personal emails.

This has to be done as soon as possible as resentful employees could end up causing chaos in your computer system or leaking intellectual properties intentionally as “revenge”.

A Word from an Employee Benefits Specialist

Handling virtual layoffs professionally is crucial for maintaining company reputation and culture. While the process is never easy, following these guidelines can help ensure that layoffs are conducted with empathy, clarity, and legal compliance.

By prioritizing clear communication, employee support, and ethical practices, employers can navigate the challenging waters of virtual layoffs while minimizing negative impacts on both departing and remaining employees.

As virtual operations continue to evolve, it’s important for companies to continuously improve their HR processes to adapt to the changing business environment. Remember, how a company handles layoffs can have long-lasting effects on its reputation and ability to attract talent in the future.

For any inquiries on employee benefits, contact our team of expert advisors today!

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Eric Chung

Content Creator at Pacific Prime

Eric is an experienced content writer specializing in writing creative copies of marketing materials including social media posts, advertisements, landing pages, and video scripts.

Since joining Pacific Prime, Eric was exposed to a new world of insurance. Having learned about insurance products extensively, he has taken joy and satisfaction in helping individuals and businesses manage risks and protect themselves against financial loss through the power of words.

Although born and raised in Hong Kong, he spent a quarter of his life living and studying in the UK. He believes his multicultural experience is a great asset in understanding the needs and wants of expats and globe-trotters.

Eric’s strengths lie in his strong research, analytical, and communication skills, obtained through his BA in Linguistics from the University of York and MSc in Teaching English to Speakers of Other Languages (TESOL) from the University of Bristol.

Outside of work, he enjoys some me-time gaming and reading on his own, occasionally going absolutely mental on a night out with friends.

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