By Jeff Altman, Big Game Hunter
Leading an organization when you have to lay off employees
By Jeff Altman, Big Game Hunter
Leading an organization during a layoff can be one of the most challenging and difficult tasks for any senior leader.
Leadership and Risk
Leading an organization when you have to lay off people. Leading an organization during a layoff 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 navigate the complexities of layoffs while maintaining the morale and productivity of the remaining workforce.
It is also in people’s interest to join an organization believing in the company because, like dating, there is a temptation to convince someone to join and stay with the organization. Like many divorces, a layoff can feel like an emotional betrayal.
After I was fired, I received countless calls, emails, and text messages from people. No matter how decently they were treated by their employer when they were fired. Few people hear the corporate message that accompanies layoffs. They will think of everything their manager said about their performance and tell them they have a future with your company.
Many people were brought into meeting rooms and auditoriums and informed. Mass video conference firings became a fad over the past few years, until examples of company presidents expressing guilt became the subject of ridicule. Now we have a new fad – email dismissals or simply being locked out of the system as a way to let people know that their services to the company are no longer needed.
One of the new things for you as a leader to contend with is the ease with which your former employees can convey the true story of their termination.
I suspect most of us have read about people who had worked for a company for 20 years being laid off, husbands and wives and women hours after giving birth. They are not collateral damage. They are real people and their stories will damage your brand and your recruiting efforts for years to come.
What can you do? When it comes to layoffs, employees want to know the reasoning behind the decision and the process that was followed. Clear communication will help reduce the impact of layoffs and ensure employees understand what is happening.
The first step to clear communication is to explain the reasons behind the layoffs. This may be due to reduced demand for goods and services, changes in the market or the need to reduce costs. Whatever the reason, it’s important to be honest and transparent. This will help employees understand why redundancies are needed and why their jobs are at risk or they are being laid off. This kind of honesty helps build trust with your employees and sets the tone for more positive results for your company.
Leader betrayal
Additionally, being transparent about the company’s future plans can help alleviate fear and uncertainty among remaining employees. In moments like these at the top, leadership should lead with empathy and compassion when faced with the daunting task of laying off employees. This is a critical moment for both employees and the company. It is important to handle this situation with sensitivity and understanding.
By showing empathy and providing support to unemployed employees. You can help ease the transition and ensure the least impact possible.
One way to show empathy is to acknowledge the challenges employees may be facing and offer support to help them get through this difficult time. This can include providing them with career counseling and resume writing services, providing financial advice, and helping them find job opportunities.
By providing these resources, you show your employees that you care about their well-being and are committed to helping them succeed after they leave the company.
Don’t overlook mental health services for former employees. A study reported in The Lancet showed that in 26 EU countries, rapid and significant increases in unemployment are associated with significant increases in suicide rates. Imagine a news story in your local newspaper, favorite online publication, or social media site with the headline “Recently Fired Employee of (Name of Your Company) Dies by Suicide.” Then you read with shock the story of this young man who left behind a wife/husband/partner and three young children. No one should have to learn to live with this.
It’s also important to maintain the morale of your remaining employees during a layoff. During times of organizational change, employees can easily become discouraged and demotivated, which can negatively impact their productivity and overall job satisfaction.
To mitigate this, it’s important to communicate clearly and transparently about the company’s goals and vision for the future, and to engage remaining employees in shaping this new direction. Creating opportunities for employees to build relationships and collaborate with one another also helps foster a sense of community and belonging 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 stay with the company during difficult times is an effective way to boost morale and thank them for their contributions. In short, by focusing on maintaining the morale of your remaining employees and providing them with a sense of purpose, you can ensure that your organization thrives into the future.
I have seen firsthand the devastating impact of impulsive and poorly executed layoffs. These actions can result in a loss of morale and trust among remaining employees, negatively impact the company’s reputation, and may have legal consequences. I suspect you’ve seen this happen in other organizations as well.
Therefore, it is critical for senior leaders to develop a clear plan and strategy for handling layoffs. The plan should be thorough and well thought out, taking into account not only the financial impact but also the impact on employees, company culture and the future success of the organization.
Working with your primary consulting and accounting firms, as well as other senior leaders in the company, will help avoid blind spots in developing plans, such as race, gender, sexual orientation and age, that can be damaging after layoffs.
In summary, leading during a layoff requires a delicate balance between being transparent and compassionate while being firm and making tough decisions by effectively communicating the rationale for layoffs, addressing the concerns of remaining employees and engaging them in driving the business forward. C-suite executives can help maintain morale and productivity and build a more resilient and motivated workforce.
