Lead the organization when you have to lay off employees

Jeff Altman, Big Game Hunter
Leading an organization during a layoff period can be one of the most challenging and difficult tasks for any senior leader. It requires a delicate balance of empathy, communication and strategic thinking to train on the complexity of layoffs while maintaining the morale and productivity of the rest of the workforce.
People join organizations that believe in the company, and the organization also has an interest in their hearts because like dating, there is a temptation to convince someone to join and stay in the organization. Like many divorces, layoffs feel like an emotional betrayal.
After being fired, I have been on the receiving end of countless phone calls, emails and text messages. Regardless of how well the employer treated them when they were fired, few people heard information about the company that accompanied the layoffs. They think of all the comments from the manager that praise their performance and are told they have a future in your company.
Many were taken to meeting rooms and auditoriums and told. In the past few years, shooting of mass video conferencing has become a fashion until examples of emotional guilt in the company’s presidential president became the subject of ridicule. Now, we have a new fashion – a way to let people know about the service to the company.
One of the new things you want to fight against as a leader is that your former employees can easily convey the very real human story of their dismissal. I suspect most of us have read a company that was released for 20 years, couple, wife and that woman after having a baby. They are not “collateral damage”. They are real people and their stories will damage your brand and recruit efforts in the coming years.
What can you do?
When it comes to layoffs, employees want to know why the process of decision and follow. Having a clear communication will help reduce the impact of layoffs and ensure employees are aware of what is happening.
The first step to clarifying communication is to explain the reasons behind the layoffs. This may be due to a decrease in demand for goods and services, changes in the market or a lower cost demand. For whatever reason, being honest and being transparent is important. This will help employees understand why layoffs are necessary and why their jobs are at risk or eliminated.
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This honesty helps build trust in employees and presents more positive results for your company. In addition, transparency about the company’s future plans helps alleviate fear and uncertainty among the remaining employees.
At times like this, senior leaders should lead with sympathy and compassion when facing the difficult task of layoffs. This is a critical moment for both employees and companies, and it is important to resolve the situation with sensitivity and understanding. By showing empathy and providing support to unemployed employees, you can help mitigate the transition and ensure the impact is as small as possible.
One way to prove empathy is to acknowledge the challenges of employees and provide support to help them through this difficult time. This can include things that provide career counseling and resuming writing services, providing financial advice and helping them connect with job opportunities. By providing these resources, you can show employees the well-being you care about and be committed to helping them succeed even if they leave the company.
Don’t ignore the mental health services of your former employees. A study reported by the Lancet said that in 26 EU countries, the rapid growth in unemployment rates was associated with a significant increase in suicide rates. Imagine a news story from your local newspaper, favorite online publication or social media website, “Recently fired (your company name) employee to commit suicide.” Then, shocked, you read the story of this young man leaving his wife/husband/companion and three children. No one should learn to get along with it.
It is also crucial to focus on maintaining the morale of the rest of the employees during the layoffs. During periods of organizational change, employees are prone to discouragement and uplifting, which can negatively impact their productivity and overall job satisfaction. To mitigate this, it is important to communicate clearly and transparently about the company’s goals and vision and to attract the rest of the employees to shape this new direction.
Creating opportunities for employees to build relationships and collaborate can also help build a sense of community and belong within the organization. This may include team building activities, cross-functional projects, and open forums for discussion and feedback. Additionally, recognizing and rewarding the hard work and dedication of employees who are with the company during difficult times is a powerful way to boost morale and express appreciation.
In short, by focusing on maintaining the morale of the rest of your employees and providing them with a sense of purpose, you can ensure that your organization has a full attitude to thrive in the future.
I have witnessed first-hand the devastating effects of impulsive and poorly executed layoffs. These actions may lead to morale and trust among the remaining employees, negatively impacting the company’s reputation and the potential for legal impact. I suspect you’ve seen this in other organizations as well.
Therefore, it is most important for senior leaders to adopt clear plans and strategic layoffs. The plan should be thoroughly thought about not only financial impact but also its impact on employees, company culture, and the future success of the organization. Working with your major consulting firms and accounting firms and with other senior leaders of your company will help avoid blind spots to develop plans such as race, gender, sexual orientation, and age that may be damaged after layoffs.
In short, leadership during layoffs needs to maintain a delicate balance between transparency and compassion and firm decision making. By effectively communicating reasons for layoffs, addressing the concerns of the rest of the employees, and allowing them to drive the business forward, C Suite executives can help maintain morale and productivity and build a more resilient and motivated workforce.
ⓒMajor Game Hunter Company, Asheville, North Carolina 2023, 2024