Facing the Challenge of Layoffs

Layoffs are one of the most difficult challenges an organization can face. The impact is felt by everyone across the organization; it can damage trust, decimate morale, curb employee engagement, and hurt productivity. A healthy company culture can be resilient and recover, but it takes a deliberate and thoughtful focus.

Compassionate messaging is key
It is important to be transparent about the reasons for the layoffs and what the organization is going to do moving forward.  Be as clear as possible and communicate with empathy. Express how much employees are valued, and that jobs impacted are not an indicator of personal performance. Share the calculus of how it was determined which employee groups would be impacted, and what is being provided to the affected employees to ease the transition as much as possible. Take a communicative approach that ensures employees understand they are respected members of the team—even during tough times.

Be strategic in the planning
Carefully think through plans for how roles will be restructured and responsibilities redistributed. Without a clear idea of what the transition will look like, employees can experience added confusion and stress. Consider how to fairly compensate those that will be taking on additional responsibilities or workload. Anticipate how to answer questions about the company’s plans. Prepare your staff to respond to employee concerns with compassion.

Decide equitably
Do not over-rely on length of tenure or subjective manager ratings to make layoff decisions. Using these factors alone can introduce unintended bias and deprive the organization of needed talent. Use criteria that are objective and skills based. Skewing decisions towards employees with less tenure can undo any progress you’ve made building a representative workforce. You may unintentionally communicate that diversity is not a priority for the organization.

Support employees
Employees who remain after layoffs experience uncertainty and other mixed feelings around what's taking place. They are 49% more likely to be actively seeking a new job. Messaging is critical; employees need help maintaining morale as well as logistical support through the transition. Encourage managers to have more frequent one-on-one meetings. Consider temporarily reprioritizing or reducing workloads so that employees have the bandwidth to adjust.

A third-party and confidential resource like tEQuitable can be a valuable outlet for employees when tensions are running high. Employees need support processing what is happening, how it affects them, and how to best cope with the changes; and sometimes they just need to express their frustration or vent in a safe space. Speaking with an external Ombuds can help relieve the pressure and facilitate re-engagement with work.

Most importantly, treat staff with dignity and respect. Make them feel appreciated and give them something to look forward to. This is an opportunity to “Walk the Talk” on your cultural values. It’s most critical that these are demonstrated during the tough times. It will speak volumes both inside and outside the organization.

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