Layoffs are increasing and, with some economists forecasting a recession in 2023, more may be on the way.
That means some leaders’ jobs will get harder – at least for those who truly care about their employees.
Informing employees that they no longer have a job due to economic circumstances is one of the most difficult duties of a leadership position. There’s no easy way to deliver the bad news to people who have worked hard, produced consistently well and been exemplary employees. A job loss affects one’s career, confidence, finances and family. Good leaders who have built strong companies by appreciating their employees’ contributions and treating them with respect are sensitive to those major impacts of sudden unemployment.
Leaders who care do not view an employee merely as a number connected to a company’s bottom line. While removing a certain number of employees is sometimes necessary to help a business survive a challenging economy, it is imperative that leaders do it in an empathetic manner. Why? Because as The Great Resignation has shown, employees are more sensitive than ever to how management treats them and other team members. As a result, layoffs can have an immense negative impact not just on the affected employees, but on the work culture itself.
Many of those who get to keep their jobs will be concerned about those who didn’t. And those employees still with the company will be watching to see if management coldly and unceremoniously shoved people out the door, or genuinely tried to soften the blow.
Employees who think they might be next in the layoff line, or feel acutely expendable because of management’s merciless ways, might jump ship ahead of time if they see leadership basically throwing people overboard without any warning, and with no concern for their feelings or future.
Tips to handle layoffs with empathy
Properly handling layoffs comes down to one central theme: leaders must consider the impact on people. Here are some tips for leaders to handle layoffs with empathy and, in the process, keep their work culture stable:
- Be transparent before the layoffs. Honest and frequent communication is central to good leadership, and that includes communicating with employees well ahead of time that layoffs are a possibility. Everyone deserves a heads-up. Give your employees information about the business problems and provide some sense that layoffs may be necessary. This will increase the trust of the remaining employees.
If you anticipate having to make layoffs, don’t hide it from your employees. Be transparent about the reality of the situation, giving them a chance to prepare and perhaps to look elsewhere for a job. You may think that you’re sparing them worry by not communicating in advance, but they’ll be shocked and feel lied to if layoffs happen without warning, and that will turn off your remaining employees.
- Address employees individually when laying them off. The easier way out for leaders when laying off a group of employees is to let human resources deal with it in a group email, brief phone call and exit interview. But is that any way for a leader to treat people who have worked so well for them? Having an individual who had little to do with the employee’s day–to-day job deliver the news? Letting them go without mention of each person’s unique contributions to the company; without a conversation geared toward helping each person moving forward? Speak privately with each employee to answer their questions, thank them personally, and to address their career situation.
- Assist with their transition. If we must let people go we should think about what we can do for them to make their transition smooth. Best practices include offering search-firm support as they look for new jobs, creating a support network, providing professional development, and trying to work with other organizations to place people who were displaced.
- Support managers with the resources to carry out layoffs empathetically. Sometimes middle managers are left to deal with communicating layoff news to their division. It’s incumbent on top leadership to make sure these managers are trained on what to say and how to handle the reactions they may receive from those who are laid off.
- Follow up with your remaining employees. In the wake of layoffs, your remaining employees may feel disillusioned, fearful, discouraged or unmotivated. Some will no doubt be grateful that they were spared, but worry tends to permeate the workplace after a round of layoffs. As a leader, do your best to calm the waters. And surveying remaining employees – which shows you value them and their opinion – will help you understand the impact of the layoffs on their experience and engagement. Once you’ve gathered feedback from everyone impacted, act upon it. You will improve the employee experience with the insights gained and appropriate actions taken, and you can also rebuild their trust and offer support to help team members who miss their colleagues.
Layoffs may be necessary to keep your business afloat, but incorporating empathy during that difficult process can keep your culture solid by showing people you truly care. Treating people with humanity is where leadership should start, and that trait can be a comfort for others when their employment ends.
