"From a company's standpoint, the decision to terminate a group of employees is fraught with potential legal, financial and public relations consequences," says Thomas Silveri, president and of the HR consulting firm Drake Beam Morin. "It is critical that managers communicate the news of layoffs in a professional, legal, and humane way in order to treat the departing employees with sensitivity and to maintain a respectful corporate image."

A recent global study conducted by DBM reveals that one out of every 10 people who lost their jobs in 2000 first told a colleague of the job loss - a strong signal to employers that the way they lay employees off directly impacts their reputation. That in turn impacts on hiring and retention.

Avoiding the wrong way

Based on its experience in working with organizations undergoing restructuring DBM recommends the following five-step process for ensuring a successful termination:

1. Prepare the materials. Explain the rationale and prepare all severance information in writing (notification letter, salary continuation/severance period; benefits; outplacement, etc.)

2. Prepare the message. Write the script you will use during the meeting and the key information you will convey to remaining employees. Keep it short and to the point.

3. Arrange the next steps. Schedule meetings with your organization's human resources and outplacement professionals. Review what should be done with the departing employees' personal belongings and specify when the employees should leave the organization.

4. Prepare yourself emotionally. Don't assume personal responsibility for the termination. Remember it is a business decision based on business needs. Acknowledge your anxiety, prepare your approach and talk about your feelings with the human resource and outplacement professionals.

5. Anticipate employee reactions. There are typically five reactions to termination: anticipation, disbelief, escape, euphoria, or violence.

By acknowledging these various reactions and learning to recognize them, you will ensure that no matter what the reaction, you will be prepared to handle it in the best way.

Do's and Don'ts

DBM also recommends the following for conducting a termination meeting:

'Do's'

• Invite the employee in to sit down.
• Get right to the point.
• Explain the actions taken and the reasons.
• Listen to the employee and wait for a response.
• Restate the message if necessary.
• Use your prepared notes/guidelines.
• Clarify the separation date.
• Give an overview of the separation package.
• Explain the logistics for leaving the company.
• Provide appropriate written materials.
• Close the meeting within 15 minutes.
• Escort the employee to the next appointment.

'Don'ts'

• Don't say "Good Morning," "Good to see you," or "How are you?"
• Don't engage in small talk.
• Don't use humor.
• Don't be apologetic.
• Don't defend, justify or argue.
• Don't threaten.
• Don't discuss other employees.
• Don't sympathize.
• Don't try to minimize the situation.
• Don't make promises.
• Don't personalize the anger.
• Don't use platitudes like "I know how you feel," or "You will be just fine," etc.

"Managers need to learn how to manage this process in a way that preserves the current productivity levels and the company's ability to attract top talent in the future," said Silveri.