Manager’s Best Practices for Surviving a Layoff
There is a right and wrong way to handle a layoff. Not all layoffs have to look like the recent chaos at Twitter. Really! Don’t believe it? Hear me out.
Layoffs are an unfortunate reality. As difficult as they are, they are sometimes inevitable and we’re seeing more within recent months. Companies that are people-first at their core can handle a workforce reduction through that lens. With a people-first approach, your company can minimize damage to the culture and environment. As a manager, you can help make this happen if your company is heading towards a layoff or are in the middle of one. How? Let’s try to unpack it!
How to Handle a People-first Layoff
Let's first establish that most layoffs are handled poorly. Research shows that when layoffs are perceived as unfair by employees, it negatively impacts the business objectives of the company. The data shows that after layoffs, those companies suffered decreases in profitability for up to three years. Also, other researchers found that companies that have contentious layoffs are twice as likely to file for bankruptcy as companies that avoid them.
There must be a better way. And that's where a people-first lens becomes crucial. The same researchers also identified positive alternatives to layoffs. Here’s just one idea. Reskilling your people instead of firing them. When your staff has critical transferable skills, it's a missed opportunity to let them go. They could excel in other areas of your company where you need help. For example, we know a company that offered their recruiters the opportunity to become sales coordinators or sales development reps before resorting to laying them off.
If you must do a layoff, there are also ways to minimize the damage. With transparency, planning, and a long-term focus, it is possible to have a workforce restructuring with minimal damage to people and culture. We’ll outline these people-first strategies in this blog. If you are in a position to share these insights with your company's C-Suite or your CEO, I encourage you to do so.
When Layoffs Occur
As a manager, it's your responsibility to shepherd your staff through any change in the business structure, no matter the cause or the strategic plan. Perspective is critical. When the layoffs are a done deal, how or why you got there is not as important. What matters is that you're here now, and your employees need you to get it done with as minimal damage as possible.
Put Your Own Mask on First
Often, the chaos of a layoff is not unlike a plane going down. And as we all know, it's better to put your own oxygen mask on first before helping others. That means getting yourself right before telling your staff. All leadership begins with self-leadership. You will not help anyone if you show anxiety, fear, or negativity to your staff. Your job is to dial down anxiety, not stoke it.
We get it. This is easier said than done. Many of the leaders report feeling isolated when facing any organizational change. Some of these feelings come from the view that managers must solve all of their team issues themselves, i.e., making sure everyone has their mask on. This is short-sighted and just plain wrong. You can't solve your company's issues all on your own. However, you can mitigate the fallout and protect your team with a more global outlook.
Zoom out. Seriously. Think beyond your desk, your office, and even your department. Look past your own anxiety and uncertainty. Consider the factors that have contributed to the situation and what needs to be done to change it. When you think about the bigger picture, you will find it easier to adapt to a "new normal" and hopefully find hope in the future. When you get yourself in the right headspace, it will be easier to get your team there too.
Start with a Comprehensive Communication Plan
Just say no to social media! Strategic transparency during a layoff is critical to employees who are being let go and those who are not. The horror stories of mass layoffs via Zoom or social media are unacceptable. Let's treat employees as people and not numbers. Your employees deserve to hear this news individually and face-to-face whenever possible. They are entitled to ask questions and have a reaction to the news. As a manager, you may not be able to answer all their questions, but they still deserve to have the conversation.
Employees not in danger of layoffs are just as entitled to know what's happening. After all, their jobs will be affected. Team morale and productivity can suffer in the aftermath of any workforce transformation. Think through how the restructuring will affect their work, make a specific plan to implement it, and communicate the layoffs and your contingency plan during team meetings and one-on-ones as soon as possible.
Experts say your communications to employees should be:
Honest: Don't sugarcoat the situation. It mostly sucks. Be accurate, complete, and direct. Tell the employees what they need to hear, even if it is unpleasant.
Authoritative: This message should come from the CEO or President, so the employees understand the gravity of the situation and trust that it's accurate.
Inclusive: All levels of your company should be included in the communication plan. Do not isolate specific teams or groups just because you think they are not involved. Everyone is involved. Everyone cares. Everyone matters.
Timely: Never, ever sit on layoff information, especially if the rumor mill is working overtime. That’s the quickest way to foster distrust, division, and litigation.
Responsive: Allow your employees to comment, ask questions, and provide input.
Helpful: Give staff the necessary tools to adjust to their new normal. This could be information or language to share with clients, vendors, and external partners. It could also include timelines and plans for workload changes.
Forward-thinking: Staff reductions are a response to the present. However, your employees want to know what the future holds. Outline the plans the company has to overcome the situation and the reasons why layoffs were necessary.
Lead with Empathy
If you Google "how to lead through a layoff," you'll probably find a bunch of articles that tell you to "lead with empathy.” Well, duh! You would think that would be a given. But if you consider the recent actions of Elon Musk at Twitter and others, it's safe to say some leaders need to remember what empathy means.
Empathy is the ability to understand and share the feelings of another person. Leading with empathy means making time and space for every employee. It means going out of your way to reduce their anxiety, understanding how your employees like to work and how they like to consume news, and knowing how to best communicate with them.
Here are some simple examples of leading with empathy.
Offer support to those directly impacted and ensure you follow through if they want your help. Example: Create communication channels, direct references, and resource guides.
Especially during uncertainty, name last-minute meetings with something that gives staff clarity on the purpose to avoid unnecessary stress. For example, instead of "Quick touch base," try "Quick Update, All Good News".
Some employees may prefer to avoid derailing their workday when new information is released. Empathetic managers know this and schedule their communications for the end of the day or the week when possible.
Sometimes employees don't absorb all of the details of workforce changes the first time around. Don't assume your staff already knows something, and don't post critical information only once. Overcommunication is key to team acceptance.
Transparency also promotes confidence. Think about how you felt when you first heard changes were happening. You had a million questions, right? Your team is feeling the same way. If you aren't open with your team, they're likely to suspect the worst.
Address the very real issue of survivor's guilt. Every employee still standing after a layoff will feel guilty, which could further decrease team morale. Finding ways for your team to talk about and rise above these feelings is critical.
Our friend, Bernard Coleman, Head of Employee Engagement at Gusto, recently made this very astute insight in his Forbes blog. He said, “Leaders can't begin to help coach or lead their folks through crises unless they are equipped to effectively react to the change.” Leading with empathy is a large part of being equipped.
Foster Human Connections
Layoffs can be polarizing, so avoid that with intentional acts that foster connections among your staff. Rally employees behind a shared sense of purpose. Build trust by letting them know you are with them. This may be the time to be a little vulnerable. It’s ok to tell your staff, "I’m really struggling with this decision too, but I'm going to do everything possible to make sure you are not overwhelmed. I’m here to take on some of your workload if you need help and if you need a day or two off, I totally understand." By expressing your own vulnerability, you can strengthen bonds in ways that can never be done in calmer times.
Give your employees multiple chances to discuss the changes from your top leaders and with each other. For example, hearing the overall strategic plan for the future from the C-Suite will make a huge difference in how your team feels about a layoff. In addition, facilitating small group discussions in which your team or departments discuss those plans concerning workload is also essential for long-term buy-in.
Your relationship with your staff is so crucial in times of change. The stronger your connection is, the easier it will be to pull them together. Make yourself as visible as possible. Try to speak with staff as authentically as possible. Don't hide behind virtual screens and emails if you can avoid them. Pick up the phone. Write a note. Visit the break room where appropriate. Most of all, ask your staff how they're doing and how you can support them. They want to know you're in the trenches with them and have their back.
What Not to Do During a Layoff
Sometimes it helps to know what not to do. We mentioned the recent layoffs at Twitter as an example. Unfortunately, there are many other examples of companies whose leaders botched a layoff. The lessons to learn here are essential. Here are just a few.
Don't conduct a mass layoff via a large Zoom or in-person meeting that lasts 2 minutes
Don’t tell the media about the layoff before you tell your staff
Don’t lay off a large percentage of your workforce and then try to bring back some of them soon after (cough, Elon, cough)
Don’t blame the layoff on employees’ productivity or morale
Don’t offer terrible severance packages or immediately cut benefits like health insurance
Don't ignore the staff who are left to pick up the work
Again, this list may be obvious to those of us with a brain and a conscience, but the best among us has been known to lose their heads in times of upheaval. So, here's your reminder to keep calm, be human, and speak your truth. A people-first approach will get you and your team through this together.
Managing through a layoff can be overwhelming! We get it. Know you're not alone, and we're here to help. We can help you upskill your staff to be more productive, and we can help you create policies that keep them from jumping ship in the middle of the storm. When the time is right, we'll also be there to help you build your team back to full capacity. Let’s try to turn the current chaos into a productive opportunity together.