Using a strategic approach in the context of mass layoff management at domestic enterprises

Abstract

The feasibility of using a strategic approach in the process of mass layoffs has been determined, which helps both to consider the issue of layoff within the enterprise that conducts the downsizing and take into account its impact on the environment, the regional labor market. The developed countries' experience of tackling the mass layoffs has been analyzed and the implementation of a rapid response strategy based on Ukrainian market realities has been suggested. The regulatory support of mass layoffs in Ukraine has been analyzed, on the basis of which the feasibility of establishing a body responsible for implementing the strategy at the regional level has been provided: the Secondary Employment Commission. The basic financial source for implementing the strategy has been proposed namely the funds of a unified social tax. The basic six steps of the strategy have been considered, first of all networking advance notice of the layoffs, meeting with the employer. At this stage it is very important to determine the major advantages that accrue to the employer in the case of implementation of the strategy, among which are the following: reduction of costs on carrying out mass layoffs, reduction of the administrative burden, saving the level of productivity and quality of work, saving the image of the company, reducing the number of claims for compensation, change and growth promoted by the guarantee of employment. The next step is a preliminary estimation of the number and severity of possible layoffs, seminars on the layoffs and organization of an information and methodological support center for employees, the organization and implementation of support programs for redundant workers, evaluation of the effectiveness of the selected methods. The basic indicators for assessing the effectiveness of the strategy implementation at the meso- and microlevel have been proposed.