Dear Roy,
HR professionals are going through a very tough time. Recession combined with need for cost cutting in all the areas results in pink slips. And in most of the organisation, the person to communicate the pink slip is HR. Even line managers are not comfortable in doing this and passes to HR. The challenge infront of HR is how to sent out honourably an employee who till the other day was like a key player and moroever, this should not affect the morale of employees who will be staying back. I suggest the following approach which I am doing myself.
1. Be aware of management's strategies. This will help for effective communication with the employees who are going to stay back or sent out.
2. Have an open communication with the employees and continuously explain the scenario outside as well as in the organisation (without revealing sensitive information). This will help the employee to mentally prepare himself.
3. While giving pink slip, appreciate the employee's contribution and give positive feedback. We should show empathy. Try outplacement option to help the outgoing employee. Please remember, tomorrow HR person may also be given pink slip by his boss.
4. As far as possible inform the employees who are staying back that the outgoing employee has resigned on his own. Don't make pink slip obvious. This will damage the morale of other staff.
5. Talk positive with the employees and emphasis the need for working as a team to come out of the crisis.
6. If staff welfare measures are implemented, please continue. If not introduce. Staff birthday, wedding anniversaries etc., will be vital.
7. HR person should not be emotional about pink slips. We should see the reality and accept and adjust.
Regards
Bhavan