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A Guide to Employment Verification Letters

Cartoon image of two males and a female leaping into the air with joy - in the foreground hands hold a letter with the word "Accepted" across the top.

If you work in Human Resources (HR) or operate a small business where you handle most of the HR responsibilities, you might encounter a request for an employment verification letter. Both present and former employees use a proof of employment letter to verify their employment with your company.

The key to providing an employment verification letter is to know what to include in this letter and the appropriate policies to have in place to handle requests for these letters. In this guide, we’ll cover everything you need to know about the purpose of employment verification letters, the methods for writing these letters, and tips for handling requests.

Why Is an Employment Verification Letter Requested?

An employment verification letter serves as an official document that helps a present or past employee prove that they either once worked for your company or currently do. An employment verification letter might be used for any of the following scenarios:

  • A former employee needs to prove their employment history to a new company.
  • A current employee is applying for lending, such as for a home mortgage, and needs to prove to a lending institution that they are employed and verify their earnings.
  • A current employee is applying for a rental and needs to verify their employment status and earnings with their new landlord.
  • A former employee wants to have official documentation on hand to use during future application processes.

In most cases, when an employee submits an employment verification letter request, they will inform you of the purpose of their letter. This will help you know what relevant information to include in the letter.

How to Write an Employment Verification Letter

If an employee has submitted a request for a verification of employment letter, the first thing you’ll want to do is find out whether the requester needs an email or a physical letter. Additionally, you’ll want to know to whom the letter should be addressed, along with the address of the organization requiring the employment verification.

When writing an employment verification letter, be sure to include the following:

  • The name of your company and your address.
  • The name and contact information of the company requesting the letter.
  • The employee’s name and job title.
  • The dates of employment.
  • The employee’s salary or compensation.

Keep in mind that depending on the state in which you are doing business, there may be additional regulations around what you are legally allowed to put in an employment verification letter. Make sure to check with local laws prior to including information in a verification letter. For example, in some states, you can provide a reason for termination if this is requested, while in other states this is protected information.

Employment Verification Letter Samples

As you begin writing a letter of employment verification, use the following samples to help get started.

Example 1: A simple letter verifying the dates a former employee worked for your organization:

TechCompany USA

123 Anywhere Street

Springfield, IL 62701

September 21, 2022

FutureTech Resolution

123 Way Drive

Springfield, IL 62701

To Whom It May Concern:

This letter is to confirm that Jeremy Litcher was employed at TechCompany from May 1, 2018, to August 2, 2022.

If you need further information, please don’t hesitate to contact us at 777.777.7777 or by email at HRservices@Techcompany.com.

Sincerely,

Kristin Lundham

Human Resources Specialist

TechCompany

Example 2: A more detailed letter for a loan company that includes salary information:

TechCompany USA

123 Anywhere Street

Springfield, IL 62701

September 21, 2022

Loan Star

123 Frontage Road

Pittsburgh, PA

15213

To Whom It May Concern:

Please accept this letter as verification of Jason Menderson’s employment with TechCompany USA.

Employee Name: Jason Menderson

Employment Dates: February 21, 2012 – Present

Current Job Title: Customer Service Lead

Current Salary: $75,000

If you have any questions or need any additional information, please don’t hesitate to reach out at 777.777.7777 or by email at HRservices@Techcompany.com

Sincerely,

Kristin Lundham

Human Resources Specialist

TechCompany

Policies for Proof of Employment Letter Requests

Once you have determined your format for writing employment letters, make sure that you put a consistent policy into place for future requests. This will not only help to streamline your process but will also make sure that any person handling these HR requests is following local regulations and guidelines.

For example, if an employee, present or past, requests an employment verification letter, you should have a response on hand that quickly details the information you will need to fulfill the request. This might include a request for the following:

  • The name and address of the organization that needs the verification letter (e.g., a loan company or a new place of work).
  • The method for submitting the letter, whether by email or by physical mail.
  • The information that needs to be included, such as salary and dates of employment.

Additionally, let employees know how many days they should expect for the turnaround of this letter.

Extra Tips for Writing Employment Verification Letters

When writing an employment verification letter, you want to ensure that you are following professional standards. Use the following extra tips to polish your employment letters:

  • Keep it short: Employment verification letters should be simple, concise, and factual. They do not need to include extraneous information, such as how you feel about an employee.
  • Double check the facts: Make sure that before you submit an employment verification letter you take the time to check the information included. Never estimate employment dates or compensation. The accuracy of this information can be particularly critical in the case of lending.
  • Use a business letter format: Always include contact information on the top left-hand side of your letter. When printing the letter to be physically mailed, print the letter on business stationery.
  • Respond in a timely manner: Remember, an employee might be relying on your response to secure financing or for another time-sensitive reason. Make sure that you adhere to a quick turnaround on employment verification letters.

If you are looking for further tips on handling hiring, employment requests, and more, be sure to check out our Insights page for Hiring Teams.

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Hybrid work exhaustion is making flexibility look foolish

Pen notebook and crumpled with handwritten note TOXIC PRODUCTIVITY, means desire for productivity at all times, inability to stop working and take adequate time to rest and recharge

During the pandemic, offices shut down and employees were forced into remote work life. For some, this was a welcomed change. Many employees had been requesting remote work options for years leading up to the pandemic. For others, it was a tough transition away from their normal office routines.

For leadership, the sudden and rapid shift required quick adaptations and policy changes. New technology had to be sourced, purchased and implemented, and teams had to figure out a new cadence in a remote work setting.

Now, as things return back to normal, many companies are requesting that their employees return to the office. However, for much of the workforce, this invitation back to the office hasn’t been welcomed. According to Gallup’s 2021 State of the Workforce study, 91% of employees who were able to work remotely due to the pandemic wish to continue doing so.

To meet employees in the middle, some companies have turned to an alternative solution—hybrid work. Hybrid work mixes remote work and in-office work together to, theoretically, provide ultimate flexibility.

However, hybrid work is not without flaws, and, for many, hybrid work has actually turned out to be more exhausting than in-person or remote work on its own. In fact, 80% of human resources executives report that their hybrid systems are actually exhausting for employees. Take a look at what can make or break the success of hybrid work for your business.

Why hybrid work can lead to exhaustion

Hybrid work sounds like the ideal blend between in-person and remote work. This style of work allows employees to continue to work from home at certain times while returning to work in the office part-time.

Unfortunately, while it sounds all very nice in theory, hybrid work can quickly lead to exhaustion and even burnout for varied reasons. The following are all reasons why hybrid work might not be as successful for your company as you had hoped:

1. Continually working in a state of flux

In some situations, hybrid work leaves employees exhausted from working in a continual state of flux. Employees might need to undock and bring home laptops and other workstation items each time they leave the office. Then, they need to set up their workstation at home, only to tear it all down and try to remember to bring along important components to the office the next day.

This can be an annoying extra task and may lead to inefficiency. Employees are continually starting and stopping what they are doing as well as wasting copious amounts of time setting up and tearing down workspaces.

Not only that, but daily routines don’t stay the same. This leads to a lack of consistency in daily life, which can be frustrating and tiring.

2. Having unclear expectations

One of the number one reasons why employees get burned out by hybrid work is because of unclear expectations. When hybrid work is rolled out without clear policies and guidelines in place, it can leave employees confused. This becomes a particularly messy situation when different managers give different answers to the same question.

If employees aren’t sure when they are supposed to work from home and when they are expected in the office, or what they are expected to accomplish in both settings, it can lead to difficult situations where employees fail to meet an expectation of which they weren’t aware in the first place.

3. Feeling disconnected from coworkers and the company

Moving between in-office and at-home work can leave employees feeling more disconnected than ever from their companies and coworkers. Communication can quickly break down, and employees might no longer spend as much time collaborating with one another as before.

This is particularly problematic when it is unclear what channels should be used for communication. Some people might be having conversations directly with each other in the office, while others are using digital channels to talk. Important information can quickly be lost in the mix, and key players can be left out of decision-making processes.

This can also create an imbalance in mentorship and networking. Those who are in the office more frequently might get more face-time with the boss. Those who spend more time at home might begin to feel disconnected and left out.

4. Being frustrated by desk options

When everyone worked in-office, employees usually had their own dedicated workspaces. Every day, they arrived at the same desks and the same setups. This made it easy to quickly start the day.

In some cases, hybrid work involves a rotating desk or open-space plan. Employees must find a desk when they arrive or sign up through an online platform to request a specific space. This can be irritating when there is a lack of availability. No one wants to show up to the office only to fight for a spot to sit down and work.

How to make hybrid work successful

Hybrid work can be exhausting, however, it doesn’t have to be. There are ways in which leadership can create a successful hybrid work environment.

1. Ask employees what they want

Start by surveying your employees to determine whether or not hybrid solutions are the right fit for your team. If employees indicate an interest in hybrid work, dig deep into what they believe that will look like. This can help you align expectations and prevent miscommunication early in the process.

2. Establish clear policies

In order to balance what your employees want and what the business needs, take the time to establish and communicate clear policies to every team member. Items you should cover in your hybrid work policies include:

  • Expectations around scheduling. Will employees set their own hybrid schedules? Will their managers dictate when they show up? Are there specific requirements that have to be met? Make sure your policy details this information clearly.
  • How communication should take place. With people working both in-office and from home, where should teams go to talk about projects? If someone has a conversation in the office, how should that information be translated to remote employees?
  • Whom the policies apply to and why. You might not be able to offer the same remote flexibility to every department and team. If you are going to be operating with multiple styles of work, make sure everyone understands where they fall in relation to expectations.

3. Find the right technology for your team

It is incredibly important to keep information and communication standardized and synchronized. Make sure that you have the right technology in place for both in-person and remote employees to be successful. This should allow for collaboration that is seamless from any location and should make project management easier for blended teams.

4. Create culture in creative ways

Hybrid work doesn’t need to result in a disconnected workforce. In fact, there are companies that have operated as fully remote from day one. These companies are using creative ideas to instill company culture and connection.

For hybrid work, consider hosting an in-person event once a month where everyone comes to the office on the same day. Schedule face-time with remote employees and consider a virtual post-work event. Make sure that during onboarding, employees have the chance to connect with coworkers and that company values are clearly defined and reinforced.

Hybrid work holds a lot of promise. However, for many employees, a poorly executed hybrid style of work is more exhausting than remote or in-person options. Pay attention to your own workforce and look for ways to create a better approach.

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Termination Letter Writing (With Examples and Template)

Emploinment termination letter. Unfair dismissal concept.

When you are in charge of managing employees, whether directly or through a human resources role, there may come a point in time when you need to terminate an employee. While terminating an employee is rarely an enjoyable task, a properly composed termination letter can make the process much smoother.

One key document during the process is a termination letter. An employee termination letter serves as an official termination notice. It is a simple correspondence that outlines important information regarding the end of an employee’s time with your business.

In this guide, we’ll help you learn everything you need to know about writing an employee termination letter, along with termination letter examples and samples.

What Is a Letter of Termination of Employment?

A letter of termination of employment, frequently called a termination notice or termination letter, is an official correspondence used to document and explain the end of a worker’s employment with an organization. Companies will use these letters to explain to an employee the details surrounding their termination, including key information such as when their last day of work will be and when they can expect to receive their last paycheck.

There are two ways an employee might be terminated—voluntarily or involuntarily. Voluntary termination occurs when an employee resigns, quits, or completes a contract. An involuntary termination takes place when a business terminates a person’s employment with or without cause.

When Should You Provide a Letter of Termination?

You should provide a letter of termination to an employee immediately after informing them of their end of employment. If you operate in the state of Arizona, California, Illinois, or New Jersey, a termination letter to employee is a legally required document. While you might not be legally required to provide this letter to employees in other states, it is still a business best practice. Ideally, providing this document in a timely manner will allow an employee the most time possible to find a new job.

Termination Letter Template

If you are tasked with writing a termination letter, you can use the following termination letter template to help you get started. For more inspiration, check out the termination letter examples below as well.

[Date]

Dear [Employee’s Name],

This letter is to inform you that your time of employment with [Company Name] is terminated effective [date of termination] due to [factual reasons for termination].

[Insert any applicable documentation or details if termination is with cause]

Your final paycheck will be provided to you on [date] and will include [compensation such as unused leave].

Your health care benefits will continue through [date].

Please return the following company property to Human Resources immediately:

[Property to be returned]

If you have any further questions, please contact me at [phone number] or [email].

Sincerely,

[Name]

[Job Title]

Termination Letter Examples

If you need help writing a termination letter, use the following examples as a showcase of how to include the right amount of details in your letter. Be sure when using a template or example to replace all copy with relevant information.

Termination Letter Example 1: Layoffs

September 12, 2022

Dear Stanley Meris,

Over the past two years, COVID has taken a toll on the profits of ABC Edge Agency. As we look forward, we are forced to reassess our budgets and spending in order to mitigate losses. In restructuring our company, we have determined the best course of action is to eliminate 200 positions at the company. I regret to inform you that we will remove your position as customer service representative as of September 13, 2022.

Your final paycheck will be provided to you on September 13 and will include all unused leave. Your healthcare benefits will continue through September 30, 2022.

Please return the following company property to Human Resources before your last day with the company:

  • Cell phone
  • Laptop
  • Headset

If you have any further questions, please contact me at 777.555.3333 or Karen.Filips@ABCedgeAgency.com.

Thank you for your hard work over the past three years.

Sincerely,

Karen Filips

CEO, ABC Edge Agency

Termination Letter Example 2: With Cause

September 12, 2022

Dear Brandie Waters,

This letter confirms our conversation today, informing you that your employment with ABC Retail is terminated effective immediately. You have been terminated for the following reasons:

  • On August 10, you received notice of a no call no show violation.
  • On August 23, you received a second notice of a no call no show violation.
  • On September 1, you were put on an improvement plan (see attached signed document).
  • On September 9, you receive a third notice of a no call no show violation, putting you in violation of your improvement plan.

Your final paycheck will be provided to you on September 13. Your health insurance benefits will continue through September 30.

You must return the following ABC Retail property to human resources immediately:

  • 5 Employee Polos
  • 1 Headset
  • 1 Radio

Should you have further questions, please contact me directly at 888.999.2222 or by email at Phylis.Wall@ABCRetail.com.

Sincerely,

Phylis Wall

District Manager of ABC Retail

Termination Letter Best Practices

When terminating an employee, use the following best practices to help guide the process.

  • Work with a lawyer: Depending on where your company is located, you may need to adhere to specific laws when writing a termination letter. To ensure that you obey all termination of employment laws, consult with a lawyer before you begin the process.
  • Have a conversation first: Before you hand the termination of employment letter to a worker, have a conversation with the employee one-on-one. Let the employee know about their termination prior to providing them with the document.
  • Don’t get personal: While you must include details explaining the reason for terminating an employee in your termination letter, make sure you keep it professional. Even if you struggled with an employee’s behavior or attitude, a termination letter is not an appropriate place to include a personal rant. Doing so is not professional, and it can put you and your organization at risk of a lawsuit.
  • Be clear and concise: In some cases, providing a notice of termination to an employee can be difficult. You might be tempted to try to soften the blow by including extra information in your letter. However, a termination letter should be kept short and to the point. This letter should only contain pertinent information about an employee’s termination, not an expression of your sadness or remorse.

To learn more about how to handle employee hiring and termination, stay tuned to our employer insights center, where you’ll find helpful guides and articles specifically designed for the modern employer.

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Job Search Engines Vs. Job Boards and Ladders

People searching for a new job. Job search concept on blue background.

If you’re like many employers in today’s market, you have at least a handful of open positions to fill today or in the near future. And even if it’s not a handful of open jobs at this very moment, every organization has open positions from time to time that need to be filled or backfilled.

So, how do you get your open job out there for candidates to see? There are a few options to target the talent pool you desire, including online job search engines and job boards. In this post, we highlight where it’s best to advertise your open role and how Ladders Recruiter can help you land the right candidates.

What’s the Purpose of Job Boards?

Jobs boards:

  • Typically host specialized positions by location, career type, or industry.
  • Host job posts submitted by recruiters and hiring organizations.
  • Work well when you have a highly specialized or niche position to fill.
  • Often display jobs shown on more than one job board as employers try to increase their recruitment talent pool and reach.
  • Often charge a fee to host a job for a specified period of time.

Hundreds of thousands of online job boards host open positions for employers. Job boards generally have an area of focus or specialization—some focus on geographical locations, a particular industry, like accounting, engineering, and security jobs, or cater to a specific talent pool searching for a specific type of job, like remote and temporary work. It’s common practice for a single employer to post on several relevant job boards to increase their reach and chances of identifying the right candidate for their open positions.

Job boards are often hosted by:

  • Local Chambers of Commerce.
  • Professional associations and organizations.
  • Universities and colleges.
  • Employers via their company websites.

How Do Job Search Engines Work?

Though the terms job boards and job search engines are used interchangeably by many, they do have some clear differences. Job search engines look across web pages and aggregate job listings by pulling from company career websites, job boards, and other websites. Similar to how the Google search engine works, job search engines use an algorithm to crawl over thousands of web pages to identify job listings and display them as a list of results.

Differences Between Job Boards and Job Search Engines

Where job boards typically focus on a particular job type, location, or industry, job search engines, like Ladders, receive job listings from thousands of online sources and aggregate them. Additionally:

  • Job search engines are backed by more candidates visiting them, so they tend to reach a lot more candidates than job boards do. Job boards tend to have a smaller candidate pool visiting them due to their specialization.
  • Job search engines index jobs from several online sources, including job boards and company career pages. Job boards, on the other hand, host positions that employers post directly to the board—they do not aggregate or pull jobs from other sites.
  • Posting to multiple job boards can add up and become costly for employers. With job search engines, an employer can sign up for free to post a job and review applications and then upgrade later for greater reach and features if they choose to do so.
  • Job boards typically sell respective job details or postings. Job search engines, on the other hand, often offer a performance-based job advertising model that provides flexibility, and the service or job posting can be stopped at any time.
  • Job boards can work well for employers that have niche or highly specialized positions. At the same time, job aggregators, or job search engines, make it easier to track applications coming in, since they’re coming in from a single source vs. having to track applicants from several job boards.
  • Job aggregators often provide the option to integrate your applicant tracking system (ATS) with their platform to help you streamline the application process. Job boards generally do not provide such a feature. With job boards, one of the following typically occurs:
  • Emails are generated and sent to you when applicants apply for your position
  • You have to go in manually and check the board for applications.
  • You outline the directions for applying for the job, and applicants apply to you directly through your ATS or by email.

Is Ladders a Job Board?

Ladders works with thousands of high-end, verified recruiters who either post jobs, source highly qualified professionals from the Ladders’ database, or both, growing their teams from their $100K-$500K+ candidate pool. Ladders’ high-level talent comes with an average of 15+ years’ experience and $154K median income. Additionally, 36% have master’s degrees, and 89% have bachelor’s degrees. These features help employers to fill their open positions from a large candidate pool of top talent.

Ladders also offers advanced search filters and a Boolean search feature to allow for advanced targeting of high-end professionals. You also have the capability to save your in-depth searches, which allows Ladders to make recommendations to you, read resumes with full contact info as you search (without losing your place in search), ATS integration and more. You can post your job for free and upgrade as your needs expand.

How Does Ladders Stack Up?

Ladders is the leader in $100K-$500K+ job search, which provides hiring managers and recruiters with a starting point of high-end, qualified talent, and from there, you get a focused search based on specific needs. Ladders offers:

  • 7 million users: pre-assessed and targeted as active or passive $100K-$500K+ job seekers.
  • 15 years’ experience on average, so no enthusiastic amateurs, just professionals.
  • 89% with a bachelor’s degree and 36% with a master’s degree—you have access to educated and proactive talent.
  • $154K median member income—talent meets achievement meets results.

Should You Diversity Your Search?

In many circumstances, it’s wise for employers and recruiters to utilize a multifaceted approach when hiring for jobs. Such an approach gives you access to a larger talent pool and can help combat high market competition when utilizing only one job board or job search engine.

If you have open positions you need to fill, you might choose to post them on a job board, on several job boards, a job aggregator, more than one job aggregator, or both job boards and aggregators. Your choice will be driven in part by your budget, your target market, and the resources you have available to sift through resumes and applications.

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How to Write a Job Description That Works

Roles and responsibilities with wooden pen

Searching for the ideal employee consists of creating an engaging and appealing job description. With the many job postings already in the pipeline online, you want to be sure your listing gets the attention it deserves from qualified candidates. Your goal is to fill the position with the best person, not just any person.

With the proper guidance, your job description listing can stand out in a crowded field of other listings and get the attention of the right candidate.

An effective job description will include all the relevant details about the job and more. It is concise yet thorough enough to provide the necessary information for a wise decision. When the candidate is finished reading it, they can make an informed decision.

What Is a Job Description?

A job description summarizes the required tasks and responsibilities of the position, as well as the skills, experience, and qualifications necessary to fulfill the role. It also contains important information about the company, its hierarchy, and the salary range. This information could include the company’s vision or culture if it’s relevant to performing the job. In addition, company benefits will engage candidates if they are worth it.

A carefully written job description is a vital part of finding the best candidate for the job. Job seekers use it to determine whether they would be a good fit for the job.

Components of a Job Description

A job description template outlines its many components. You can use this template as a guide in preparing your job description.

Job Title

The first thing the job candidate will see is the job title. This needs to be clear and straightforward. You want to ensure that the title description is specific and easy to understand. You can use keywords or phrases that pertain to the job title so that the person looking for the job will be able to quickly understand what the position entails. Remember, the candidate will likely be scanning through several job descriptions at a time. So, if the job title is clear, the person will know what is involved.

Avoid using abbreviated terms or lingo because not everyone will be familiar with these.

Introductory Paragraph Summarizing the Company

Begin your opening paragraph with an overview of the company. Use action words or powerful adjectives to paint a picture of what the company brand image is. This section should be brief, only a few sentences or one paragraph. It can let the person know what is unique about the company, provide information about the company’s mission, or establish the company culture.

Duties and Responsibilities

Clearly define the job duties and responsibilities of the job position. You can break this down so that the candidate will know if they are qualified and interested in the job. Be sure to include the following in your job description under duties and responsibilities:

  • Summarize the main responsibilities that typically come with that particular job. List the specific duties involved with doing that role. Also, be sure to include any tasks that are generally outside the scope of the job but may be unique to your company. For example, if you are hiring an office receptionist and the position requires writing the meeting minutes, you would want to include writing proficiency. This allows the candidate to assess whether they have the skills necessary to do the job.
  • Next, describe the everyday activities that the position entails. By providing this information, the person can determine what a typical day is like. It also gives the person an idea about the workplace environment.
  • You can also include how the job position fits into the hierarchy of the business. For example, you can describe who the candidate reports to and how the department will interface with other departments within the organization. This provides candidates with an overview of the company structure and how the job position fits into the whole picture.

Qualifications and Skills

This section will list the qualifications and skills necessary to do this position. Include both technical and soft skills in this section. Soft skills may include things like:

  • Dependability
  • Communication skills
  • Leadership ability
  • Teamwork
  • Time management skills
  • Organized

Also, be sure to include any specific certifications or training if you require them. You can list qualifications and certification requirements in a bulleted format.

Salary and Benefits

Candidates are always interested in seeing the salary amount, especially if it’s competitive. If the salary is dependent on the candidate’s experience or qualifications, you can list the salary range instead of an exact amount. Also, provide information about the benefits since these can provide an added boost to the salary package.

Formatting Tips for a Job Description

Follow these formatting tips when creating the job description:

  • Use bold headings for each section of the job description.
  • Skip to the next line after the heading for each summary.
  • Use easy-to-read plain text for the summaries beneath the headings. Text can be in Times New Roman, Arial, or Calibri in 11– or 12-point font.
  • Add an extra line between each of the sections.
  • Use bullet points in the duties and responsibilities and qualifications and skills sections.

Here is a formatted template example:

Job Title

Text in normal font.

[Skip a line]

Introductory Paragraph Summarizing the Company

Text in normal font.

[Skip a line]

Duties and Responsibilities

Text in normal font.

[Skip a line]

Qualifications and Skills

Text in normal font.

[Skip a line]

Salary and Benefits

Text in normal font.

Implement these tips and use the formatting template, and you’ll be well on your way to writing your next job listing. Following this guide can help you attract candidates who are a good fit for the job.

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AI and Personal Data – Ready for the Great Reset Yet?

A finger presses a mesh of glowing lights from which the profile of a women's face is emerging on the other side. Artificial Intelligence concept.

You don’t need to answer that question. You do have a right to privacy. Trouble is, New York City and California are transforming their concerns about privacy (not yours, employer), into new laws that will come into effect on 01 January, 2023.

The new laws concern Automated Employment Decision Tools (AEDTs).

And even though the “good news” is that total confusion over the laws and the “high volume of public comments” has led to a delay in enforcement – April 15, 2023 for New York City and July 01, 2023 for California – legal eagles are advising employers to get prepared now. Inviting a couple of lawyers round for Christmas dinner is something to consider.

No? OK – let’s look into it.

Automated Employment Decision Tools – and You

For a non-comprehensive list of tools in use by employers, we’ll point out:

  • Resume scanners using specific content to prioritize job applications.
  • Video tech used to analyze candidate characteristics or mannerisms.
  • Software used to monitor employees to analyze performance.
  • “Job Fit” tech generally if used in the evaluation of a candidate/employee.

Under the new law In New York City, requirements will include: 

  • Implementing a “bias audit” of AEDTs within one year prior to use.
  • Informing candidates or employees about AEDT use for hiring or promotion.
  • Inform same about the job qualifications and characteristics the AI tech will use.

“Violations of the provisions of the bill would be subject to a civil penalty.” — NYC

Well, that part is pretty clear, even if they did neglect to add “Happy new year!”. Touted fines for NYC are $500 for first violations and up to $1,500 for each subsequent violation.

Just to be perfectly unclear on what AEDTs are, according to the NYC law, here’s a quote:

“The term “automated employment decision tool” (or “AEDT”) is broadly defined as “any computational process, derived from machine learning, statistical modeling, data analytics, or artificial intelligence, that issues simplified output, including a score, classification, or recommendation, that is used to substantially assist or replace discretionary decision making for making employment decisions that impact natural persons.”

In California, Attorney General, Rob Bonta, was thinking along these lines in November:

  • A business commits an unfair business act or practice if it uses artificial intelligence or other automated decision-making tools in such a way as to have a disproportionate, adverse impact on or causes disproportionate, adverse treatment of a consumer or a class of consumers on the basis of protected characteristics.
  •  It can be an unfair business act or practice for a developer to sell or a business to utilize AIA without testing, auditing, monitoring, disclosures, and transparency. Transparency measures could include disseminating data and source code for independent review and testing, and disseminating the results of internal and independent audits. It is an unfair business act for an entity to refuse transparency, audit, or monitoring measures. 

Try to bear in mind that he’s only trying to help.

Burdens of Souring, Hiring, Retention – And Help!

As an employer or hiring team, your motives for using AEDTs is to improve the process of identifying, interviewing, and ultimately hiring the best fit candidates for open positions, with a view to enhancing productivity, retention and growth.

Increasingly easy online job applications means potentially massive response to advertised positions, with possibly many more fake-it-’till-you-make-it hopefuls than highly qualified experts in the relevant field. What to do? Enter Applicant Tracking Systems and any other automated help that becomes available to support analysis, assessment, and hiring the best.

And now, as you eagerly endeavor to optimize these complex AI assistants to achieve optimal outcomes, you find yourself needing legal assistance just to start pushing the buttons.

Still, progress.

With that in mind, related or similar local, state and even federal mandates are looming over the new year and our collective festive cheer, so getting on top of this one may be the first step to being capable of protecting yourself from the next one(s).

Unfortunately, getting on top of this one could be an uphill battle, even for the lawyered-up. That “high volume of public comments” mentioned above includes complaints about how vague many of the key terms actually are, and how many questions have been left unanswered. 

So the cynical could think that the delay in enforcement may be more for the people writing those “key terms” to figure out what they actually mean than it is for the employers who must start abiding by them as soon as humanely possible.

In September, the Department of Consumer and worker Protection (DCWP), proffered what it calls “Proposed Rules” to help employers get to grips with the question of how to comply with the new law, which is a nice gesture during the season of giving (and taking). Apparently, they’re still not finalized, but have been stated in this article already and can be found in greater depth here.

What’s the Point?

The point of all this is essentially to assess potential bias against anybody in a protected category: race, ethnicity, sex, for example. Those selected to move forward or given a classification by a AEDT would be analyzed with a view to identifying bias or lack of it. In New York City the following questions can tentatively be answered here (next steps: ask your lawyer):

Independent Auditors?

The audit would require an “independent auditor” – person or group not connected to the development or use of an AEDT responsible for an audit. Potentially, this would allow for consultants/contractors to be brought in and could mean legitimately using an in-house compliance team, if independent in the way mandated.

Informing Candidates and/or Employees?

Giving notice would or could entail posting the notice of AEDT use on the careers or jobs (as applicable in each instance), section of the company website, job posting, or email to candidates or employees.

Plan of attack?

  • Don’t limit your evaluations to your own AEDTs: Study vendors used by your company and AEDT tech used on your behalf, as legal responsibility could be open to question, probably depending on a slew of variants.
  • Figure out the “Independent Auditor” question and conduct an audit of your AEDT(s) and look into:
    • Related data collected and why
    • Full analysis of protected groups and comparative results
    • Methods and goals of data analysis
    • Criteria in place to decide success
    • Transparency of these and related processes 
    • Give notice as described and provide alternatives/opt-out
    • Find your own alternative if negative outcomes are identified

In October, the Biden administration published: Blueprint for an AI Bill of Rights. Here’s a quote to get you in the festive mood:

“Among the great challenges posed to democracy today is the use of technology, data, and automated systems in ways that threaten the rights of the American public. Too often, these tools are used to limit our opportunities and prevent our access to critical resources or services. These problems are well documented. In America and around the world, systems supposed to help with patient care have proven unsafe, ineffective, or biased. Algorithms used in hiring and credit decisions have been found to reflect and reproduce existing unwanted inequities or embed new harmful bias and discrimination. Unchecked social media data collection has been used to threaten people’s opportunities, undermine their privacy, or pervasively track their activity—often without their knowledge or consent.”

After all the cynicism prevalent in 2022, doesn’t that remind you of the final scene of A Christmas Carol?

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Work Schedules for Employees: A Supervisor’s Guide

Calendar software showing busy schedule of manager with many meetings, tasks and appointments during the week, time management organization at work concept, business person using agenda on computer

Developing work schedules for employees is necessary for business efficiency and productivity. There are numerous methods a manager can use to schedule employees and numerous work schedule options available that work for various business needs and policies.

Below we offer a guide to support you in evaluating the types of work schedules available to determine which work best for your department or organization.

What Are Work Schedules?

The determined times and days of the week that an employee is to work are referred to as their work schedule. Work schedules impact an employee’s payment, job responsibilities, and benefits eligibility. Federal, state, and local laws can also impact work schedules.

Why Are Employee Work Schedules Needed?

Improves efficiency. Knowing when employees are scheduled to work reduces time spent attempting to figure out where employees are and making adjustments, so you can focus on productivity.

Ensures legal compliance. There are numerous labor and employment laws to abide by, and effectively scheduling employees makes it easier to abide by them and assess compliance.

Provides consistency. It is easier to manage employees when you know when and where they are, allowing you to delegate more effectively and do your job better as a manager, too.

Helps calculate labor costs. Proper scheduling practices help to ensure you don’t over- or under-schedule staff to meet your demands, which means you don’t overspend or come up shorthanded.

Improves customer and client satisfaction. Customers and clients like to know they’ll be well taken care of and when they can expect to reach someone within your organization or at your call center, and proper scheduling of employees allows you to schedule employees based on skill sets to meet these needs.

10 Employee Work Schedule Options (with Examples)

Here are 10 different types of work schedules with examples.

Full-Time Schedules

Full-time work schedules are those that meet the hours defined as full-time by the company. In many instances, full-time employees work for the same number of hours and days each week. Employees with full-time schedules can be paid hourly or based on a salary, depending on their job classification. Most full-time employees are eligible for employer-sponsored benefits.

Example: A standard full-time schedule is working five eight-hour days, like 8 a.m. to 5 p.m., with an hour for lunch, Monday through Friday.

Part-Time Schedules

Part-time work schedules are those where the employee works less than what’s considered full-time in a given week at a company. Since most organizations consider 40 hours a full-time work week, part-time work would be any regularly scheduled hours that fall under 40 hours per week. A part-time employee’s schedule sometimes changes from week to week, as well.

Example: An employee who works Monday through Friday from 12 p.m. to 5 p.m. would work five five-hour days, or 25 hours per week, which equates to part-time.

Fixed Schedules

With a fixed schedule, the employee works the exact same days and hours from week to week, which is typically predetermined before employment commences. Fixed schedules often stay the same throughout one’s employment with an organization, and both part-time and full-time schedules can be fixed work schedules.

Example: A part-time fixed schedule could be Wednesday through Saturday from 9 a.m. to 12 p.m. weekly, and a full-time fixed schedule could be Tuesday through Saturday from 8:30 a.m. to 5:00 p.m. with 30 minutes for lunch each week.

Flexible Schedules

Flexible schedules operate similarly to fixed schedules, with some flexibility built in. The key difference is the flexibility to start and end at different times of the day, as long as the total number of weekly hours is met. Some employers require workers to be on-site or working during core business hours with the flexibility to alter their start and end times outside of those hours. Some companies might allow their employees to work some hours in the office and the rest remotely or at home.

Example: A full-time, flexible schedule requires employees to work 40 hours per week and be at work Monday through Friday between 10:30 a.m. and 3:30 p.m., with the option to arrive between 7:30 a.m. and 10:30 a.m. and leave between 3:30 p.m. and 7:30 p.m.

Split Shifts

A split shift schedule is where an employee works one part of their shift, clocks out, and then clocks back in to work the second part of their shift. Split shifts are common in the service, hospitality, and transportation industries.

Example: A server clocking in for their lunch shift, then clocking out for a few hours, and then clocking back in to help with the busy dinner rush would be considered a split shift schedule.

Rotating Shift Work Schedules

With rotating shifts, workers go in for a series of night and day shifts. Industries that operate 24/7, like some hospitality businesses and the healthcare industry, typically have shift workers.

Example: A nurse that is scheduled to work three night shifts, has two days off, and is then scheduled to work three day shifts, would be considered to have a shift work schedule.

On-Call Work

On-call schedules are those where employees are on-call to work if needed outside of their standard shifts. Employees are typically on-call for late evening or very early morning hours outside of their normal working hours. These types of schedules typically rotate between employees.

Example: Someone being available to work if called in from Monday through Thursday from 8 p.m. to 1 a.m. once a month.

Compressed Work Week

A compressed work week schedule means the employee works a standard number of hours in fewer days. In other words, if your standard work week is 40 hours over five days, the individual would work 40 hours in fewer days.

Example: A common compressed schedule is a 4 X 10, or four ten-hour days. Another common example is 4 X 9 and 1/2 day Fridays, which equates to four nine-hour days and one four-hour day, with the standard being that the half day, or four-hour day, falls on Friday.

Seasonal Employment Schedules

As the name implies, seasonal schedules are based on various seasons of the year and are temporary positions. Seasonal work can be part-time or full-time for the duration of a specific season, such as Christmas, wintertime for ski resorts, or the time leading up to the Fourth of July to help sell fireworks. Seasonal work is common for businesses that rely on the weather to offer certain services, like white water rafting, hiking, swimming, and skiing, and in retail settings that need additional staff for busier times of the year, like around the holidays.

Example: A retail store that hires extra cashiers from October through to the end of December to support the busy holiday season would be offering seasonal employment.

Freelance Work Schedules

A freelancer is hired to do specific work for an individual or business, though they are not considered employees of the organization. In some instances, a freelancer’s schedule might be set by the organization if agreed upon by the freelancer, though in many instances, as long as the work gets done, freelance workers define their schedules. Freelance work often pays by the project vs. by the hour.

Tips to Create Employee Work Schedules

  • Determine the needs of your organization based on the type of work, shifts that require covering, and so on.
  • Research employment laws pertaining to your business and consult legal guidance to ensure compliance.
  • Inquire about what employees would prefer.
  • Create a work schedule policy that defines scheduling rules and guidelines.

Finally, once your team’s work schedules are determined, find a place to post them for all members of the team to see. That way, it can save time and efficiency for the entire team.

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Is The Washington Post Toast? Layoffs Spread as We Head Into 2023

Close up of TV screen showing a large "Breaking News" headline

While the fortunes of traditional media have been subject to downturn, thanks to the rise of digital media, the fortunes of digital media are now, ironically, making headlines as it shows signs of going the way of the big tech downturn. 

Silicon Valley and the tech downturn are no longer alone as we prepare to enter 2023. Both traditional and digital media appear to be heading in the wrong direction, as inflation combines with lowering readership/viewing/listening figures and layoffs ensue.

According to a report by AXIOS, CNN is down 47 percent and MSNBC down 33 percent in viewing figures, with Fox News beating the trend with an upward trajectory of 12 percent in the same six-month span, between January and June, 2022. The top five digital news providers in the U.S. dropped 18 percent in the first half of 2022.

Layoffs announced by CNN in November are expected to affect hundreds of employees, while NPR announced hiring freezes. ABC’s December layoffs include national correspondents and “The View”’s senior executive producer, Estey McLoughlin. 

Shockingly, social media engagement with news content dropped a massive 50 percent during the same period. Some apologists claim this may be due in part to Facebook purposefully moving news engagement to its “News Tab”; however, the big picture indicates that this may be only part of the story.

BuzzFeed also announced layoffs in early December, dropping 12 percent of its workforce – around 180 people – citing an ad pullback and economic downturn.

While the overwhelming consensus appears to be that people have become weary of a constant cycle of bad news, the rise in viewership for Fox appears to be willfully ignored as those assessments are made. The indication is that something else may be the root of the problem; and an unwillingness to face uncomfortable problems usually means negative long-term outcomes.

Is The Washington Post Toast?

The Washington Post’s digital subscriptions and digital advertising revenue have been described as “stagnating” and the paper is set to show financial losses for 2022.

When The Post’s publisher, Fred Ryan, announced layoffs to shocked staff at a town hall meet he apparently didn’t anticipate follow-up questions, despite his workforce being made up of professional journalists. When questions came at him anyway, he scarpered as quickly as he could.

One sneaky journalist, of course, covertly filmed the escape and leaked it online, perhaps providing a silver lining to Mr Ryan’s poorly thought out Happy Holidays message.

The announced layoffs came a couple of weeks before Christmas and are scheduled to take place in the first quarter of 2023. In November, The Post announced that it was ending its once beloved print and digital magazine and laying off the staff, citing “economic headwinds.” This despite the fact that five of 40 stories most popular online for the paper were produced by the magazine and its staff, which first appeared in 1986. 

The fact that this recent communications disaster is just one of many horror stories that have happened as companies layoff staff is another story – but an important one.

To stay on point, the headline of this article may be too limited. Many are now openly asking the question: “Is journalism dying?” Some are even questioning the timing of the headcount reduction and becoming conspiratorial in their thinking.

Does that make sense? The mainstream media has always been controlled. If it tanks, some will fall one way and others another – one group making self-education a priority and no longer trusting any approved narratives.Some would argue that the Bezos owned Post was anything but a bastion of free-thinking American journalism anyway.

The answers are probably in the big picture. And that very much includes the tech industry, inflation, an unemployment rate the Fed claimed in September would rise to 4.4 percent by the end of 2023 – even though it then dropped back to 3.5 percent before returning to 3.7 – the continuation of high quit rates and the phenomena of “quiet quitting”.

Making the big picture more of a Picasso than a Renoir.

The New York (Bad) Times

Part of the downturn in this industry is pointed at Donald Trump. Once he left office, everybody saw the curtain come down on the only show in town, and business suffered. However, The New York Times and The Wall Street Journal have increased subscriptions since his departure. 

Still, rather than celebrating, hundreds of New York Times employees chose to spend a day standing outside the building, striking and chanting.

The mantra: “What’s outrageous? Stagnant wages!”

The strike is the first of its type for the paper in over 40 years. Unable to come to agreements with the union of New York Times’ editorial, media, and tech professional workers, The New York Times Guild, over issues including salaries and health-and-retirement benefits. Of course, the word “inflation” is coming up a lot in “discussions”.

Negotiations have shot back and forth for months now, with both sides seemingly unwilling to yield, and the strike as the culmination of frustrations, powerplays, or whatever you choose to think. Relying on international employees and non-union journalists to fill in the gaps has only added fuel to the fire.

Unsurprisingly, The Times saw protests begin in August over – wait for it – the union representing technology workers.

The Outlook in 2023

While many claim that we have been in recession since the U.S. economy shrank by 0.6 percent over two straight quarters this year, answering the technical definition of recession, others point to 50-year low unemployment figures at 3.5 percent, and claim that COVID-related disruptions have resulted in confused economic outcomes.

Those who believe we have been in a recession are predicting a depression in 2023, with unemployment starting to rise as layoffs across industries spread. With a current unemployment rate at a still healthy 3.7 percent, there is room for cautious optimism, with a recommended mantra of:

“Hope for the best. Expect the worst. And deal with what comes.”

Founded back in 2003, Ladders has weathered many storms with its members and knows how talented, hard-working people can optimize their skills and experience to dodge the big waves and stay on solid ground, with a clear career-path stretching out ahead.

We won’t be making the above mantra our official tagline any time soon, but we do want all professionals, whether in the recruitment industry or not, to think about it.

In preparation for 2023, with a view to increasing time-to-hire and improved retention rates, we’ve created our Hiring Teams Solution, which includes dedicated Promoted Jobs and Sourcing packages, live support, resume viewing during search with full contact info on display, and much more.

As this article points out, there are a variety of reasons why traditional and digital media is going through tough times, and it isn’t all inflation driven. The fact that it comes so soon after the stunning big tech downturn appears to fulfill many dark predictions about the immediate future, but that may not be the case.

At time of writing, the quit rate remains at 4.0 million, with The Great Resignation still in play and the “Quiet Quitting” phenomena on the rise. While some employers see a downturn as an advantage for them in this area, many warn that the much beloved remote work model is here to stay, and those who continue attempting to roll it back will likewise continue to suffer negative outcomes.

Whether or not the latter point of view is correct is up for grabs, as most things are during these strange times, but it would certainly be a strange time for companies to gamble so much.

Here’s to 2023 – stay in touch.

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“How Many Pay Periods in a Year?”

Wooden blocks with the word Payroll, money and a forklift. Payroll is the sum total of all compensation a business must pay to its employees for a set period of time or on a given date. Taxes.

Operating a business comes with various tasks and responsibilities. As an HR or finance professional, one of the jobs you may have to deal with, depending on the structure of your company, is managing payroll. You need to have a system in place to ensure that all the employees get a regular paycheck on time.

Employers can choose how and when they pay their employees, but must keep a few things in mind:

  • Pay your employees in a consistent manner. Select a payday frequency and stick with it.
  • Adhere to any specific state laws pertaining to pay period frequencies.
  • Communicate the payday frequency with your employees.
  • Be punctual in distributing the paychecks.
  • Follow the Fair Labor Standards Act (FSLA) when managing payroll.

If you follow the FSLA and any state regulations, you can choose the type of payday frequency and pay periods that work best for your business type and structure. Assessing the type of people you employ, how large your company is, how many pay periods in a year you’ll need, and what the schedule will typically look like can help you make the right decision when setting up the payroll.

This guide answers questions you may have about this topic as you prepare to pay your employees.

The Importance of Understanding Pay Periods

Your employees will want to know the frequency of their paychecks. So, it’s vital to establish a pay period upfront. A pay period consists of the following components:

  • Hours the employee has worked during a set timeframe.
  • A beginning date and end date.
  • A consistent pattern of beginning and end; the next period begins where the last one left off.
  • The same amount of time for each pay period.

The key to creating a payroll that works is to be consistent. Then you’ll know how many paychecks in a year they’ll get and how often they will receive one. You can pay your employees differently as long as the employee’s pay period remains consistent. For example, you may choose to pay the salaried workers less frequently than the manual laborers. Typically, low-wage earners are paid more regularly since they may rely on their paycheck from week to week.

What Are the Different Pay Periods in a Year?

There are four main pay periods from which to choose. These are as follows:

Weekly Pay

A weekly pay period is on a schedule that comes out once a week. Employers need to pay their employees at the end of every week. As a result, if you choose this pay method, you’ll need to schedule 52 or 53 payroll disbursements, depending on if it’s a leap year or not.

The weekly pay system is common for companies that employ manual labor workers and low-wage employees. However, keep in mind that since you’ll be running payroll more frequently, you’ll also have more administrative work and costs per year.

Biweekly Pay

The bi weekly pay period is the most common and popular. When using this system, you’ll pay employees every two weeks instead of every week. It needs to be on the same day every two weeks, though.

Since you will be only paying every other week instead of each week, you won’t have as many payouts per year. So, how many biweekly pay periods in a year are there? There are 26 bi weekly pay periods in a year as opposed to 52 (or 53) with a weekly pay period system.

This pay schedule may work out well for mid-sized to large companies because employees get paid regularly, and employers see a reduction in administrative costs for payroll management.

Monthly Pay

Monthly pay periods must be paid once a month and follow the same date every month. This pay period may be the most convenient for employers, but low-wage earners are not too keen on it. If the company employs mostly high-wage earners, it would be an ideal pay period because of the reduction in administrative costs.

Semi-monthly Pay

A semi-monthly pay period provides a paycheck for employees two times each month. This differs from the bi weekly pay period. Semi-monthly is scheduled on the same two dates of the month, usually the 1st and 15th or the 15th and 30th. However, the day could (and will) vary.

A bi weekly pay period will be on the same day every other week, but the dates will vary.

Which Pay Period Works for Different Businesses?

You can use whichever pay schedule and pay period that works best for your business model. Some companies prefer one pay system over another based on the structure of their business. Here are some tips to help you determine which method is best for your company:

Consider whether you have mostly high-wage earners or low-wage earners. The employees’ needs are important to consider. Since you want to attract and retain top talent, you’ll need to think about how your employees will want to be paid.

Think about the company’s cash flow so you don’t get into a tight jam every month. You need to be sure you can keep things operating smoothly from a financial standpoint, too.

Assess whether your employees are salary, hourly, or both. If you have employees in both categories, you may decide to split the pay periods between the two groups of employees.

Look at the size of your company. How many employees do you have to pay? If you have a large number of employees, it may make sense to pay less often because of the amount of administrative time it will take to process payroll. Keep in mind that you must balance this need with the needs of your employees.

Whatever pay period you decide to use for your employees, it’s essential that you stick with it. Why is this so vital? If you are haphazard in paying your employees, it won’t look well for the company. You also may be in violation of the Wages and the Fair Labor Standards Act. Not paying on a regular basis could result in missing a payment, which could cause serious legal problems.

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Demotions in the Workplace

Promote or demote symbol. Businessman turns cubes and changes the word 'demote' to 'promote'. Beautiful yellow table, white background. Business, demote or promote concept. Copy space.

Within the workplace, certain scenarios might necessitate demoting an employee. Demotions can be a valuable solution for dealing with budget cuts, restructuring your company, or responding to poor employee performance.

Prior to demoting an employee, it is important to understand what a demotion entails, when it is appropriate to demote an employee, and the pros and cons of demotion. This can help you determine whether or not demotion is the right solution for your specific situation.

What Is a Demotion?

A demotion takes place when an employee is shifted from one role to a lesser role in the company. For example, if an employee is a manager, a demotion might return them to a line-level employee.

Demotions can be permanent, or you can use them as a temporary solution. A demotion does not have to result in a direct departmental demotion but could instead involve shifting an employee from one team to another. The exact details of a demotion will depend on the reason for demoting an employee.

When to Demote an Employee

There are numerous scenarios that can result in the demotion of an employee. The following are all reasons why you might decide to demote an employee:

  • An employee is underperforming: Often, a demotion is an alternative to letting an employee go. If you have an employee who is not meeting their productivity or revenue goals, you might consider demoting them to keep them on their team while they improve their performance. In this case, you might consider a temporary performance-based demotion. An employee can earn their original role back by showcasing improvement.
  • An employee is failing to adhere to workplace policies: If an employee is not following company policies and has been written up for misconduct, a demotion is an alternative option to terminating the employee. Similar to performance issues, this might be a temporary demotion used as part of a performance improvement plan.
  • An employee needs further training: In some situations, an employee might lack adequate training for their role. In this case, demoting the employee to a position where they can learn the skills they need can help ensure they continue to earn money while becoming prepared for increased job responsibilities later.
  • An employee wishes to have less responsibility: There are situations when an employee no longer wishes to have their current level of responsibility but would like to stay with your company. In this case, they might voluntarily request a demotion. This is a great choice for employees who are in good standing with the business and simply wish to strike a different work-life balance.
  • A department is being dismantled: When a company goes through restructuring, entire departments might be dismantled. In this case, a demotion is an option for keeping quality employees.
  • A merger has taken place: If more than one company merges, it usually leads to downsizing teams or shifting department structures. Similar to dismantling a department, a method for retaining employees during a merger is to demote them into available roles.
  • Budgets are being reduced: When a company experiences unexpected financial strain, it can lead to the necessity of reducing personnel budgets. Demotions allow you to retain employees while lowering costs.

What Are the Benefits of Demotions?

The following are all benefits of employee demotions:

  • Training opportunities: In some cases, employees fail in their current roles due to a lack of training. Through a demotion, you can provide a paid-training opportunity that will prepare that employee to be successful throughout their career. This can help reduce frustration and lead to improved confidence.
  • Retaining talent: Just because an employee is not a good fit for one role doesn’t mean they aren’t a good pick for another. Demotions allow you to shuffle talent to the best role to fit their skills and talents.
  • Weathering financial difficulties: During financially uncertain times, demotions can help you balance your budget and make it out to the other side. This, in turn, gives you the chance to promote employees down the road.
  • Improved work-life balance: For some employees, a demotion is a welcome experience. With fewer responsibilities, they can focus on improving their work-life balance and discovering what it is in their career that makes them tick.

What are the Drawbacks of Demotions?

The following are the drawbacks of demoting an employee:

  • Leads to resentment: In some situations, an employee who has been demoted will be unhappy and displeased with their new role. This can lead them to become disgruntled and lack motivation in their new position.
  • Creates an uncomfortable team dynamic: If an employee is demoted from a manager role to working on the same team they once managed, it can create a difficult team dynamic. It might be hard for a former manager to let go of control and follow the leader who replaced them.
  • Causes an employee to leave: Even if you demoted an employee in an effort to retain them, the reality is that it might cause them to leave your company. If they feel their demotion was unwarranted, they might seek employment elsewhere.

How to Demote an Employee

If you have determined that demoting an employee is the right fit for your situation, use the following steps to help make the process as positive for everyone involved as possible:

  • Give them plenty of notice: Never blindside an employee with a demotion. This is particularly important if you are demoting them due to performance or behavioral issues. Address issues as they occur and bring up demotion as a possibility if improvements are not made. In the case of budget issues or restructuring, try to let employees know as early as you can about the possibility of demotions.
  • Have a one-on-one conversation: Don’t demote an employee through email. Instead, sit down with them to discuss the demotion in detail. Let them know the reason for the demotion and inform them what will happen next.
  • Don’t get personal or emotional: An employee might react strongly to a demotion. While you can’t control their anger or sadness, you can remain calm and keep the conversation professional. Let the employee know you are happy to let them take some time to process the conversation if they are particularly upset.
  • Clearly define their new role: Make sure that you provide your employee with a documented explanation of their position. Never assume that they know their new responsibilities, even if they were previously working in a managerial role on the team. Provide clearly defined expectations for them going forward.
  • Outline training and coaching opportunities: If you had to demote an employee because they couldn’t yet meet the expectations of their previous role, explain the ways in which you plan to support them going forward. Offer training and coaching that they can take advantage of to grow in their career.
  • Document the demotion: Make sure you keep copies of all notices you provide to your employee regarding their demotion. It is best to document the demotion with a written letter after your conversation. This should outline the date of their demotion and details their new position within the company.

If you are looking for more resources about hiring and retaining talent, make sure to check out our employer insights center.