When COVID forced a nonprofit healthcare organization to close an entire facility, leadership faced a seemingly impossible challenge: comply with the WARN Act's complex requirements, retain 175 affected employees for six months after telling them they would lose their jobs, and safely rehome 102 residents — all with a multicultural, multilingual workforce. HM Pinnacle designed and executed a comprehensive workforce transition that achieved what the organization's leadership thought was impossible. Not a single employee left before the closure date. All 102 residents were placed in appropriate care facilities. And 65% of laid-off employees were connected with new positions. The engagement earned recognition from Leading Age, the national nonprofit healthcare organization.
Close the Facility, Keep the Staff, Break No Laws — During a Pandemic
The client — a nonprofit healthcare organization operating 5 sites with approximately 250 total employees — was forced by COVID to close an entire facility. The closure would affect 175 employees and displace 102 residents who depended on daily care.
The challenges were compounded at every turn:
- WARN Act compliance required precise execution. Non-compliance carries penalties of $500 per employee per day — a financial exposure that could have devastated the nonprofit.
- Staff retention was critical. Residents needed continuous care through the closure. If staff began leaving early, patient safety would be compromised.
- Multicultural workforce with many non-English speakers meant that communication about layoffs, transition resources, and legal rights had to be delivered in multiple languages with cultural sensitivity.
- Timeline pressure. The organization needed every one of those 175 employees to stay for a full six months after being told their jobs were ending.
“We had to tell 175 people they were losing their jobs — and then ask them to stay for six more months. Everyone said it couldn't be done.”— Heather MacKay-Mencheski
Turning a Layoff into a Transition That Protected Everyone
HM Pinnacle approached the closure not as a termination event, but as a workforce transition. Every element was designed to maintain dignity, ensure legal compliance, and protect both employees and residents.
Key interventions:
- WARN Act compliance framework: Built a complete regulatory compliance timeline ensuring every notification, meeting, and documentation requirement was met precisely and on schedule
- Individual transition meetings: Met with every affected employee one-on-one to discuss their situation, concerns, and career goals
- Multilingual support: Brought in interpreters for every language represented in the workforce, ensuring no one was left without understanding
- Regional job placement: Called healthcare facilities within a 250-mile radius to identify open positions matching employee skills and qualifications
- On-site job fairs: Organized hiring events at the facility, bringing potential employers directly to the affected workforce
- Resume writing and career support: Provided hands-on help with resume preparation, interview skills, and job applications
- Resident transition planning: Coordinated with receiving facilities to ensure every resident was placed in appropriate care without gaps in service
Every Employee Stayed, Every Resident Was Placed, and the Organization Avoided Catastrophic Fines
“We didn't just close a facility. We moved 102 people who needed daily care to new homes, and we found jobs for most of the people who took care of them. That's what people operations is supposed to do.”— Heather MacKay-Mencheski
What Leaders Can Learn from This Workforce Transition
Key Takeaways
- Treat closures as transitions, not terminations. When you frame a layoff as a workforce transition, you change the emotional dynamic. Employees who feel supported will stay through the end.
- WARN Act compliance is non-negotiable infrastructure. The penalties are severe and the requirements are precise. Build a compliance timeline from day one and treat it as seriously as the operational plan.
- Meet every affected person individually. Group announcements create panic. Individual meetings create trust. This was the single most important retention factor in the engagement.
- Language access is a safety issue. In a multilingual workforce, providing interpreters is not a nice-to-have — it is essential for legal compliance, emotional support, and operational continuity.
- Outreach within 250 miles changes placement rates. Most organizations limit job placement efforts to the immediate area. Expanding the radius dramatically increased the number of positions found for affected staff.
- Dignified transitions earn industry recognition. The organization received kudos from Leading Age — the national nonprofit healthcare association — for how the closure was handled.
Schedule a CEO Growth Conversation
Learn how HM Pinnacle helps organizations navigate facility closures, WARN Act compliance, workforce reductions, and complex transitions with dignity and precision.
Schedule a Conversation →Frequently Asked Questions
What is the WARN Act and when does it apply?
The Worker Adjustment and Retraining Notification Act requires employers with 100+ employees to provide 60 days' advance notice of mass layoffs or plant closings. Non-compliance carries penalties of $500 per employee per day.
How do you keep employees from leaving after a closure announcement?
The key is immediate, individual communication combined with tangible transition support. When employees see that the organization is actively helping them find new positions, they have a reason to stay through the end.
Does HM Pinnacle handle WARN Act compliance directly?
HM Pinnacle builds and manages the compliance framework — notification timelines, documentation, required meetings, and communication protocols. Legal review is coordinated with the organization's counsel.
What industries does this workforce transition approach apply to?
While this case study focuses on healthcare, the transition framework applies to any industry facing facility closures, workforce reductions, or organizational restructuring — including manufacturing, retail, and professional services.
How far in advance should we engage a workforce transition partner?
Ideally, as soon as a closure or major reduction decision is made — and before any announcements to staff. Early engagement ensures WARN Act compliance timelines are met and transition resources are in place when employees first learn the news.