WSJ: The Long Goodbye

Why Some Employers are Providing Laid-Off Employees with Longer Notice Periods

December 10, 2023 – Although layoffs are on the rise, compassion for employees seems to be increasing, too. Many companies, including household names like Wells Fargo and Disney, have recently embraced the idea of the long layoff—giving employees notice weeks or months ahead of their final workday.

Why the change? Onwards HR CEO Sarah Rodehorst explains, “Companies can’t lay people off on the quiet anymore. Whatever they do is much more under a microscope. They have to hold themselves to a higher standard.” Mismanaged layoffs can quickly make the rounds on social media, resulting in potential legal and PR nightmares.

The longer notice period has its advantages, too. When employers of a certain size make significant layoffs, they’re required to adhere to the federal WARN Act, which mandates a 60-day notice period. The notice requirement is even longer in some states with stricter laws—often referred to as Mini-WARN Acts. Though employers can opt to forgo the notice period and instead provide employees with the equivalent in back pay and benefits, longer goodbyes benefit both the employer and the employees.

Advance notice enables departing employees to hand off tasks and train others, making for a much smoother transition. Plus, they can search for a new job with the support of their soon-to-be-former employer. Employees often appreciate the longer notice period, as it gives them more time to sort out finances and figure out next steps. It also shows the remaining employees that the employer is dedicated to treating its people with respect—a valuable point to make when morale might be low.

When layoffs are inevitable, at least they can be handled with transparency and compassion.

Read the full article with your Wall Street Journal subscription.

Want to see how Onwards HR works? Request a demo.