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Does anyone have experience in shutting down a plant or store? I am wondering what you have to offer those managers and employees that stay until closing to make it worthwhile for them to do so. We ha
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posted at 10/9/2008 10:49 AM EDT
Posts: 19
First: 1/22/2004
Last: 10/9/2008
Does anyone have experience in shutting down a plant or store? I am wondering what you have to offer those managers and employees that stay until closing to make it worthwhile for them to do so. We have to close down a location that is remote from any other we have and we are trying to figure out the logistics. It is impracticle to send employees from other locations to tow the line if they all walk out? Any advice is appreciated. Thank you.

Closedown

posted at 10/9/2008 12:15 PM EDT
Posts: 228
First: 11/1/2006
Last: 1/20/2010
Will you be offering a severance package to the employees at the closing location? You may want to offer a "stay" bonus as well. That is, if they stay through the final closing there would be additional compensation in the form of a stay bonus. This may or may not be an incentive for them to stay. I have seen it go both ways.

Closedown

posted at 10/9/2008 12:21 PM EDT
Posts: 79
First: 3/19/2008
Last: 10/15/2009
I have seen cases where laid-off employees really appeciated free employment counseling.

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posted at 10/9/2008 1:26 PM EDT
Posts: 108
First: 2/1/2007
Last: 9/9/2010
We had to go through a store closing, and needed employees to stay through the last day. We provided a bonus for employees that stayed through the last day. We also provided employment counseling, resume services, etc. for those employees that stayed through. With the exception of a few employees, most that stayed really worked hard through the last couple of days.

Closedown

posted at 10/10/2008 4:32 AM EDT
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
Or, just offer them a severance package and state clearly, in writing, that their receipt of it is dependent upon them staying (and working!) until the end of their last shift.

Closedown

posted at 10/10/2008 4:34 AM EDT
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
And tell them (you can do this whether or not you're offering severance pay, conditional or otherwise) that if they leave before the end of their last shift, this will be considered a resignation without notice and that you will be advising the UI people and prospective employers of this.

Closedown

posted at 10/10/2008 11:34 AM EDT
Posts: 2442
First: 2/12/2000
Last: 9/14/2011
Don't forget to check and see if this closing is covered by the WARN act.

Closedown

posted at 11/11/2008 11:45 AM EST
Posts: 127
First: 8/22/2000
Last: 1/6/2009
Can't agree with your suggested approach hrbth. Threatening people doesn't endear them to a company nor does it normally result in success.

A better approach is what has already been suggested such as adding extra perks for people to stay.

I'm a firm believer that people come to work to be valued and do a good job. All they expect is the same in return.

A shutdown is about a change in business approach and as much as it may impact people, they'll continue to take care of the company as the company has taken care of them.

Best regards,

Denise O'Berry
aka "Team Doc"
http://www.askteamdoc.com

Closedown

posted at 11/13/2008 12:09 PM EST
Posts: 1771
First: 10/24/2002
Last: 9/14/2011
I was just responding to the poster who advising offering a stay bonus in addition to a severance package - I really don't see why offering two "perks" is necessary. I also advised being very clear in writing about it because I have lots of experience with people leaving early and STILL expecting to get severance pay. Finally, I don't recommend threatening EVERYONE with telling the truth to UI, just those people who start trying to leave early.

Closedown

posted at 11/14/2008 4:16 AM EST
Posts: 2442
First: 2/12/2000
Last: 9/14/2011
The reason for having the "stay" bonus is actually quite simple to understand.

Many companies severance payout is not sufficient to keep staff that are worried about finding their next job and of course the best ones will flee first if there is not reason to stay.
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