Handle with care! How employers can help mitigate the loss of employment (and earnings)
Have you seen the social media content lately where people send out 1,400 detailed and personalized resumes and cover letters, just to land 1 interview? Now imagine that you are a recently terminated employee who has not had to find a new job in over 10 years, and you’re now forced to seek new career opportunities while navigating the modern rules of the job search game - where do you even start? As a leader you have had to make the difficult, but necessary decision to terminate a member of your organization - what do you need to consider? During the termination process, employers need to support the mitigation of loss of employment (and earnings) for employees – most of us consider this to be the financial package that comes with the termination letter. Though that may be true, there is much more to it. Recently, the courts have deemed that money alone is not enough to help employees navigate the loss of employment, and that skills and personal feelings matter too.
I do not know if any of you have ever lost a job or been laid off, but I know that I have. It does not matter that it was unavoidable or not my fault; it still rocked my world (and not in a good way), made me question my life choices, and ultimately led me to develop new skills and a deeper empathy for those who experience terminations. What I have learned is that how someone experiences this transition can be heavily influenced by how their employer or manager handles the situation.
What should we consider for mitigation strategies?
Historically, when an employer considered mitigating the effect of the termination it was considered 'good enough' to focus on the severance package or gratuitous payment of monies to be issued to the exiting employee. Under common law, this is called “reasonable notice” and is in excess to what is required by local employment standards. However, recent court decisions have shown that money alone is not sufficient for mitigation in 2025, particularly with longer term employees re-entering the job market.
I often coach employers to prepare for this difficult meeting and advise them to consider what it would be like to be sitting on the other side of the table. his leads to discussions of what else can be included to help bridge the individual losing their job to new employment – what would you need support with if you were looking for a job tomorrow? Some questions come to mind:
- Are your computer skills up to date in your field and for your job search? Are you comfortable working with new technology, such as AI tools, and understand the influence that it has on your field of work?
- Do you know what job boards and job search apps to use for best success in your field or geographic location?
- Do you have a strong network or networking opportunities to help you learn about unadvertised opportunities?
- Have you updated your resume since you started your last job – and would you even know how to integrate current trends and online tools into this process?
Developing job search skills, and the job search itself is a full-time job. If you haven’t been in an active job search for a while, believe me that these things have evolved!
How can employers support mitigation during the termination process and the transition?
Regardless of the reason for termination, it is always encouraged to provide employment verification letters to the employee – these confirm when they worked for you, the positions they held, the tasks they performed, and any observable competencies they displayed consistently in the workplace. This is different from the “old school” reference letters, as this is not about selling the employee’s skills and abilities but confirming the details of their employment relationship with your organization. Ensuring that this information is consistently presented, between the employment verification letter and any reference calls, is important as well!
Effective mitigation strategies offered by employers should be as unique as the employee you are considering – it could be as simple as providing a list of job search and local training providers in your geographic area, covering the cost of a paid LinkedIn Learning membership or other skills training, and even forwarding suitable job postings to them for their consideration. Depending on the person, their position, and their tenure, you may even consider more formal out-placement support options from well-known agencies.
Mitigation impacts more than the job!
As leaders we need to consider the impact that termination has on self-esteem. Often, employees define themselves by the work that they do and the titles they have with the organization. This has a direct link to how they assess their self-worth and is especially relevant when the employee is in the early or late phases in their career. Employers should extend access to their Employee Assistance Plan (EAP) beyond the end of employment or provide links and access to other local resources, as well as consider how you can help with the recovery of self-esteem throughout the termination process. If the termination is without cause, consider giving the employee the opportunity to work with you on the communication message to their co-workers, clients, and others, as this will help them control their own narrative. Think about how you can provide support for former employees in networking connections, professional association fees, or other opportunities to meet new employers. Taking these extra steps can show your appreciation and go a long way for the exiting employee as they plan for their next endeavour. Mitigating strategies can also have a positive effect on your current workforce, demonstrating that employer decisions are made with care, and that you wish to help employees succeed at every phase of the employee life cycle.
A brave new world
Losing a job is a profound and significant event with far-reaching implications for anyone who goes through it. Studies have even shown that it is similar to the death of a spouse or a divorce in terms of the psychological impact. Helping people move from employment with you to their new future is the goal of mitigation. The terminating employer needs to consider more than just the legal minimums or offering extra money during the termination process to meet the definition of mitigation and create a process that supports the development of their job search skills, promotes local resources, and works to recover their self-esteem and confidence through this momentous change.
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From the LIHR team and lead collaborator, Rebecca Wilkinson, Senior HR Consultant Rebecca@LisaIsaacHR.com
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