With financial security ranking as a top concern for most people, those who have recently been terminated and are going through a life transition may require the greatest amount of support.
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Most businesses will face the unpleasant reality of firing an employee at some point and should implement measures for handling this dilemma correctly and offer assistance during a difficult time.
To avoid negative repercussions, (such as a wrongful termination lawsuit), all companies large or small should have a procedure in place for properly firing employees. Instilling programs that provide financial planning or other resources for recently laid off employees protects the integrity of the business as well.
Appropriately handling the termination process not only benefits the employee, but the company as a whole. It will provide reassurance to other employees and limits tension, which is conducive to a productive work environment. It also provides the terminated employee with resources for coping during the transition.
Here are five steps employers can take to help with the transition process:
1. Proper Procedure: During the termination, include all documents related to job performance such as work reviews and written warnings to prevent any misunderstandings, and have a witness present to oversee the proceedings. Be sure to explain clearly--yet courteously--as to the grounds for termination, avoiding debate on the issue. Handle the termination with a human element, treating the employee as a person and not a number, and be sure to keep the termination confidential to maintain the former employees privacy.
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2. Outplacement Services: Typically hired by larger companies, outplacement firms can offer great assistance to recently laid-off employees. They provide help with resumes, hone interview skills, offer networking workshops and even access to life coaching.
3. Financial Transition Planning: This asset will help terminated employees understand their economic situation and offer financial advice on how to handle their accounts. Different groups can educate the employee on finding a new job that provides the necessary compensation bills as well as assisting with 401(k) and overall retirement plans.
4. Severance Package: Organizations that offer severance packages to downsized employees are providing them with a resource during the transition period. Most companies compute severance payments using a formula that is based on years of service among other factors.
5. Resources: Not all companies have the budget to offer access to an outplacement firm, but that doesnt mean they need to leave terminated employees out in the dark. At the very least, businesses can provide a list of resources and contacts where the terminated employee can seek assistance.
About Retirement Planning Group (RPG) Located in Riverwoods, Illinois, Retirement Planning Group (RPG) is a financial planning firm committed to tailoring the retirement process for each individual client and providing financial education programs for corporations. With a 95% client retention rate over the course of 16 years, the experienced staff of financial professionals takes time to counsel each prospect and deliver a plan designed to meet each individuals specific needs. They have been featured in esteem publications like the Wall Street Journal and Crains Chicago Business. Retirement Planning Group is located at 2610 Lake Cook Road, Suite 250, in Riverwoods, Illinois. They can be reached at (800) 596-0253. Find them online at www.rpgplan.com. Securities and advisory services offered through National Planning Corp. (NPC), Member FINRA/SIPC. A registered Investment Adviser. RPG and NPC are separate and unrelated companies.