Canadian HR Reporter

www.hrreporter.com 19 partner's job or geographic limitations to deal with to the same extent as larger households. Again, family size was not a consideration for management decisions during involuntary layoffs. Evidence-informed decisions The results demonstrate that, while the use of voluntary layoffs is popular in practice, they result in a mismatch of employee exit decisions when compared to involuntary layoffs almost half of the time. Yet, employers continue to use voluntary layoffs as a knee-jerk reaction to environmental uncertainty. Clearly, employers need to reconsider their approach. This research demonstrates the importance of taking an evidence-based approach to HR during times of change. For example, before executing layoffs, using an advanced analysis method such as the policy-capturing (or judgment analysis) method that this research used is a relatively quick and inexpensive method to help employers understand which factors influence decision- making during layoffs. This can allow the organization to identify potentially undesirable layoff decisions and prepare retention efforts or modify eligibility criteria accordingly. moderate cost-control approach to layoffs. They are more focused on subjective factors such as job performance, organizational commitment and job satisfaction. Voluntary layoffs decision factors In evaluating voluntary layoff decisions, the biggest consideration for employees was the size of the severance package. Employees who were offered a larger severance package were 46 per cent more likely to volunteer for a layoff than those offered a smaller severance package, irrespective of any other consideration (such as job performance, job satisfaction, education level, tenure with the firm or gender). Poor performers were only 14 per cent more likely than strong performers to volunteer for a layoff. Perhaps, they felt that they were at a greater risk of performance-based dismissal (being fired) or involuntary layoffs. As a result, they might self-select into voluntary layoffs to "save face" with co-workers or avoid the embarrassment of being fired. In addition, single persons were 13 per cent more likely to volunteer for a layoff, regardless of any other factor. These employees may have greater geographic mobility since they do not have a This can also identify if any non- work-related factors impact layoff decisions during involuntary layoffs. If so, efforts to mitigate the use of potentially discriminatory factors in layoffs decisions (such as gender, age or family status) can help reduce wrongful dismissal claims. Given the large influence of job performance on management decisions when it comes to involuntary layoffs, HR departments need to ensure that performance management systems prior to the layoff are effective, accurate and current. To be used effectively by managers during layoffs, performance assessments must also be reliable, valid and free from bias. When executing voluntary layoffs, employers should consider offering standard or comparable severance packages to minimize the likelihood that the wrong employees volunteer for a layoff. Eligibility for voluntary layoffs also needs to be clarified to help retain the strongest employees. If clear decision criteria, effective performance management systems and standard severance packages cannot be offered, companies should consider abandoning the practice of voluntary layoffs. By adopting this approach, managers can ensure that their internal workplace composition remains aligned with organizational expectations. CHRR Although layoffs are largely used as a cost-reduction strategy, the salary levels of employees had no impact on management's layoff decisions. Nita Chhinzer is associate professor in human resource management and business consulting in the Department of Management at the University of Guelph in Ontario. She can be reached at chhinzer@uoguelph.ca. Calgary-based Enbridge allowed employees to volunteer for a layoff when it had to reduce headcount in June.

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