HR never wants to break the news that employees are losing their jobs. But it’s often left to you, because doing it the right way can save a lot of trouble down the line.
There are several types of staff reductions, each with a slightly different meaning. Referring to the company’s plan by the proper term will eliminate some confusion and help the process go smoothly:
1. Furlough
In a furlough, employees work reduced hours so the company can save on payroll without having to terminate anyone.
For example, nonexempt workers might each take one unpaid day off a week for a few months. Exempt employees can be furloughed for a set number of full weeks.
2. Layoffs
Though any staff reduction is often referred to as a layoff, the word really means that the reduction is temporary. Telling employees they’re being laid off implies the company expects to bring the workers back when business picks up.
3. Reduction in force
Permanent reductions should be referred to as a reduction in force (RIF).
That makes it clear that staff is being permanently shrunk and workers will not be called back.
