Recently I was in a workplace the day of a massive layoff. An entire division was shut down. I’m not getting into details to keep confidentiality, and respect the privacy of those who had to find work elsewhere. There was a marked tone to this mass evisceration in comparison to others I have heard about.
Here’s a rundown of how it went:
- A transparent message of what was happening due to the economy was e-mailed to the general population prior to the layoffs.
- A lunch was held as the employees were given notice that things were not good.
- Employees were told together in a meeting soon after about their severance pay, benefits and were humanly treated as best as the company could manage under the circumstances.
- It was a community layoff of sorts, and while upset, few disgruntled workers shared their views publicly.
I had the opportunity to speak with some of those who were laid off a few months after the episode. No layoff is simple. In retrospect, some of these former employees say they might have left without a job , but they did not leave deflated of confidence and self esteem. They were also better prepared then most, having been kept abreast of the company’s situation to a degree.
A February survey by global consulting firm, Watson Wyatt, indicated that 52% of the companies polled had already made layoffs, another 13% intended to move in that direction. The firm released some guidance today on the process stating that open communication before, during and after layoffs will make for a more productive workforce. The pointers somewhat mirror the aforementioned anecdote.
Here are some of the key points verbatim, in the guidance offered by Watson Wyatt. Check the company link for further information.
- Before: Prepare leaders early. While leaders should initially deliver key messages about business conditions and actions, it’s important for frontline managers to personalize and reinforce them.
- During: Clearly communicate the rationale for layoffs, and don’t shy away from tough questions.Transparency is critical to maintaining trust. Employees leaving the organization will want to know what support the company will provide them and hear that their service has been valued, while employees remaining will want to know whether their own jobs are secure.
- After: Engage remaining employees by communicating a vision for the future. Highly engaged employees are more resilient during times of change and will drive performance in critical times. Employers can help remaining employees stay engaged during a restructuring effort by delivering messages about the organization’s long-term vision, clarifying how the employees can contribute to it and setting up realistic expectations for sharing information and available support going forward.
Ultimately the process, while difficult, can be facilitated in a humane fashion; if company leadership is willing to answer the hard questions, do it in a transparent way, and engage the workers left behind steering the ship.
