Layoffs 6 Mistakes Leaders Make When Announcing Layoffs - Sun and Planets Spirituality AYINRIN

 Layoffs

6 Mistakes Leaders Make When Announcing Layoffs - Sun and Planets Spirituality AYINRIN 

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Summary.   

Layoffs are trauma-inducing for an organization and its employees. When handled badly, some people (and organizations) never fully recover. Leaders make six common mistakes when communicating layoffs: 1) They’re not transparent about the state of the business; 2) They’re not clear on the path forward; 3) They don’t get the tone right; 4) They don’t offer remaining employees the opportunity to ask questions; 5) They don’t bring middle management on board; and 6) They don’t show appreciation to departing employees.

Most leaders recognize that the true test of their character comes in difficult times, when a change in business conditions demands a shift in strategy in order to create and preserve enterprise value. And because people are usually the single largest expenditure on an organization’s balance sheet, layoffs often become discussion item number one.

Layoffs are trauma-inducing for an organization and its employees. When handled badly, some people (and organizations) never fully recover. “When the next cycle of hiring comes around, the talent you pursue will judge your company by the reputation it earned in this round of layoffs,” advises Evelyn Rodstein, Manhattan-based executive coach and former Wall Street leadership and talent executive.

For organizations facing down this situation, how should reductions in force be communicated to employees? What’s a “great place to work” to do? In my experience as a former CHRO, attorney, and now as an executive coach, I’ve seen six common mistakes leaders make when communicating layoffs.

They’re not transparent about the state of the business.

In good or bad times, the best companies proactively ensure employees are routinely educated on the state of the business. They invite employees to listen in on investor calls, host quarterly town halls, or send regular “state of the business” emails that inform everyone about major customer wins or losses, the acquisition or sale of a business, and relevant industry trends.

This kind of forward-looking communication strategy should ensure employees are not shocked during inevitable business downturns. People understand challenging business conditions. They will not forgive avoiding or obscuring the facts.

Angela Stopper, chief learning officer and director of people and organization development at UC Berkeley, observes that organizations sometimes delay communicating layoffs because they’re afraid “good” people will leave. “Why would you think that?” she asks. “All your people should be good people.”

They’re not clear on the path forward.

As a former CHRO and corporate executive, I’ve both lived through and led layoffs enough to know that successfully reengineering your business through staff cuts only works when it’s one part of an overarching strategy to create greater value. Make sure you’re clear on that strategy and ready to share it before acting. Rebuilding your business requires communicating a compelling vision that will inspire your remaining employees to forgive any mistakes in business judgment, set aside doubts, and recommit to your organization.

They don’t get the tone right.

Healthy human beings don’t want to inflict pain on others. It’s understandable that leaders may want to distance themselves from their own guilt or feelings of failure. But there’s a big risk in emotionally detaching, ignoring, or downplaying the complex emotions, such as anger, sorrow, and confusion, that your employees may be feeling.

Anticipate and plan for this. Envision how you would want to be treated, and be that leader. Think through how you will respond if someone starts crying on a call or is angry in a meeting. When employees leave, “you want them to have felt cared for,” says Stopper.

You want to be empathetic, but you can’t be defensive, sentimental, or make excuses for the bad business situation you are in. Make compassion a key driver of your approach. Be direct and take it on the chin. (CEO’s posting crying selfies expressing their sadness over layoffs have not always gone over well.)

Your employees need to feel you’re there and that you care. Treat them as intelligent partners who can understand the logic and rationality behind a change in structure, process, capability, and people.

They don’t offer remaining employees the opportunity to ask questions.

Most people understand that business demands may result in staff reductions. However, these events are still viewed “with great cynicism,” says Rodstein. Be prepared and available to respond to myriad questions, from how the work will be handled to what support services will be offered to departing employees. People are evaluating whether your organization is a safe and rewarding place to stay.

Employees will likely want to understand why some roles were chosen for elimination versus others. There is projection of survivor guilt — Why were they chosen and not me? — as well as a stress response: Am I next? Be prepared to share, even at a high level, the business rationale for the positions or business units that were selected. But make sure to consult with your HR and legal teams on what you can say. How you exit people “can spin out into legal claims,” observes Jennifer Schwartz, a California-based employment attorney.

Employees will also want to know whether more layoffs are coming. You can share that you are confident in the business strategy and, if true, that no further cutbacks are planned. However, never say this is the “only” or “last” time you will have reductions in force. You cannot know this.

As an in-house executive and now as a CEO coach, I’ve had to remind some leaders that although they have been living with the tough news for a while and may be ready to move on, the layoffs are a raw wound for the rest of the organization. Creating space for questions demonstrates transparency and openness from leadership, which can build trust with employees. Allowing for honest discussion can address concerns and anxiety, provide clarity and understanding, and foster engagement and ownership by employees when they feel that their voices are heard and their questions are taken seriously. Healing takes time, patience, and persistent effort. Think of every conversation as an opportunity to re-recruit those who stay.

They don’t bring middle management on board.

Employees will likely direct most of their questions to their managers. So it’s critically important to give middle managers the information they need about the business case and future vision, so they can address employee concerns.

Managers must believe in the strategy or actions will seem unfair, advises Rodstein. Map out a timeline that includes an investment in these critical culture carriers. Allow space for them to process their own feelings, so they can show up as leaders with genuine confidence when its needed most.

They don’t show appreciation to departing employees.

Your employees contributed to building your organization. Thank them for the piece of their life that they invested. Incorporate genuine expressions of appreciation in your communications, both formal and in-person. Be specific with your feedback. It means much more for a manager to thank a colleague for their lasting contributions on a project, or gaining a critical customer, than just to give vanilla thanks.

. . .

Thoughtful leadership is critical in navigating the challenging terrain of layoffs. Employees are not only exiting partners in your business — they are future clients, customers, and competitors of your business. Treat them as such. By avoiding these six common mistakes, you can ensure you treat people with compassion, dignity and respect when it’s needed most.

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