Every year across the United States, 4,000 churches close their doors, according to research from Thom Rainer. 

Layoffs

Most of the time, churches lay off employees because of financial difficulties because they can no longer afford the employee. Sometimes, churches lay off staff because of a shift in vision. When the person is laid off, their position will not be refilled.

Here are some tips I’ve learned over the years about how to layoff staff in a way that’s honoring and kind to them: 

• Be certain that the layoff is correct and needed. 
• Seek wise counsel. Before you execute a layoff, seek wise counsel from your board or other pastors from other churches. You need prayer as the leader and wise counsel for what is best for your church and your staff.

• As a leader and manager, take some responsibility for the layoff. The church hired the employee and situations have changed financially or strategically. If you were too aggressive on church growth plans that did not pan out, you need to own that.

• A layoff, unlike a termination, will come as a shock to the staff member. Even though you might have been watching the financial numbers closely as the executive pastor, most staff members will not know the financial situation of the church to that detail. So be prepared for their shock and emotional upset.

• Meet with the person who is being laid off with another pastor if possible. Open the meeting in prayer. Then get right to it: “I am very sorry, but we are going to have to lay you off.”

• Then go through as much detail as you can for the reason for the layoff and also explain that their position will not be refilled because of the current circumstances.

• As a leader, you have a requirement to try to assist the person being laid off in finding another job. That means you need to write a reference letter, use your contacts to get them an interview and be available when future employers call for a recommendation or reference. Lastly, many people these days do not know how to write a good, effective resume. So, give the former employee an example of a good resume. Offer to help them edit it before they send it out.

• Many times the staff member will be very hurt. mad, or upset with you and the church. Give them time and space to go and talk to their spouse and family.

• Many existing staff will feel shame and guilt that they still have a position when their friends and co-workers don’t. Still others may fear that their position is also in jeopardy. Have a staff meeting after the individual layoff meetings for the staff to process the situation.

• Since many times layoffs are done with multiple staff members at one time, you should bring them back (a couple of days or weeks after they were notified of the layoff) to have a time of prayer and community with remaining staff. Remember, it might be appropriate to invite their spouses. Spend this time in the Word with a short teaching and have an open prayer time where supervisors and staff pray over the former employee.

I wish I had followed the suggestions given above, each and every time that I laid off a staff member. I did not. Thanks be to God for the power of the Holy Spirit which has graciously sanctified me in this area over the last several years. Looking back at the two large layoffs we had at Mars Hill in May and September of 2014, we had a prayer time on Wednesday, September 10th. It was one of the toughest days of my professional life. 

That day, we had all of our church locations and their local staff join an online broadcast, and we invited all of the people who were laid off to return for a corporate time of prayer. Pastor Dave Bruskas started the meeting with a Bible teaching. Then we had each supervisor or close co-worker pray over each person who had been laid off. For a leader, it was a tough thing to do, but in hindsight, it was most definitely the right thing.

As an executive pastor, I have learned over time that you cannot lead a church staff like a business. You are a pastor with business acumen. The leadership style that worked while you were in the secular world may not love and lead like your church team needs. This fact is never truer than when it comes to terminations and layoffs. I pray that God will use what I have learned to help you lead and love well through the tough staff transitions you will face.