Industrial or global shutdowns, cost reductions and business fallout are just some of the reasons why employees are laid off. Fallon and McConnell (2007) argue that firms make layoffs primarily for economic reasons. Today, many organizations are forced to downsize due to these factors. However, before layoffs occur in organizations, many steps need to be taken to ensure the process is effective. Selection criteria are the most important aspects of organizations' initial decision to make workforce reductions. Decisions about which employees leave or stay should be made before making layoffs. Personnel Policy Service Inc (nd) states that employers must use discretion in determining which employees to lay off. When choosing which employees to lay off, they suggest that companies use criteria such as seniority (length of service), performance review and merit, employment status and professional skills. Seniority is a common selection criterion used by many companies to determine which employees will stay. “Of all the criteria, seniority is the most objective” (Segal, 2001, p.199). Under seniority-based layoffs, the most recently hired employees are the first to be laid off. Fallon and McConnell (2007) and Personnel Policy Service Inc (nd) argue that the use of seniority is advantageous because it is a fair and safe way to determine who to fire. Personnel Policy Service Inc (nd) argues that it is also very easy to implement seniority as a selection criterion. However, using seniority as the sole selection criterion has disadvantages. Companies that use seniority as the sole selection criterion run the risk of losing employees who have expertise, initiative and leadership...... middle of paper ......g layoffs , it is important that selection criteria are established. A hybrid approach applying seniority and performance selection criteria should be used with respect to dismissal decisions. As McConnell (2006) states, it is extremely important that these selection criteria be applied consistently in all termination decisions to avoid employee discrimination claims. Works Cited Fallon, LF and McConnell, CR (2007). Human resource management in healthcare. Sudbury, MA: Jones & Bartlett Publishers. McConnell, C, R. (2006). Umiker Management Skills for the New Healthcare Supervisor (4th ed.). Sudbury, MA: Jones and Bartlett Publishers. Personnel Policy Services Inc (nd). Common questions regarding layoffs. Retrieved from http://www.ppspublishers.com/articles/layoffs.htm Segal, J. A. (2001). Tribal workplace counseling. Hrmagazine, 46(6), 197. Retrieved from EBSCOhost