Layoffs, company culture, & what it says
Let’s talk about it: Layoffs are painful for everyone involved but we can make it better. As HR professionals, we have an obligation to ensure layoffs are handled with care. If we don’t - the company will be the next hashtag on LinkedIn and not in a good way!
Studies have shown that workplace reductions or layoffs don’t do much for mitigating or cutting costs. Effective and inclusive severance packages cost money and cuts reduce morale and productivity as remaining employees are left wondering if they’re the next ones to be let go.
There are so many moving pieces to layoffs but one thing we see missing is how everything is handled afterwards. Imagine your work bestie gets laid off and you still have to show up and keep things running - OUCH. This is an opportunity to communicate with the teams that remain and invest in morale. Give space to talk about it instead of letting it be the awkward elephant in the room because no one else wants to lose their job. Processing circles (basically safe space to have conversation) are a great way to help staff process, ask any questions, and for companies to reassure them of their future.
How to Make Layoffs Better for Employees
If you find yourself in a company that is conducting layoffs or planning to do so, here are a few tips to make it a little easier:
Communicate at every step of the process (yes - even when you don’t have all the answers or decisions). Consider creating an FAQ document and make sure your legal team has reviewed it.
Plan headcount proactively to potentially save roles instead of cutting them. Consider the cost of recruiting folks back into those roles - how soon might that happen?
Structure severance packages in advance so you know exactly how much it will cost and explain it to the former employees. Providing clear guidance on what they are getting and how to use it is vital. Also include this information in your FAQs.
Don’t just ghost people. Let them leave gracefully and with support (specific point of contact, post-employment resources, etc). This means, don’t just turn off their computer or access remotely and without having a conversation first. Layoffs aren’t fun for anyone, but people generally understand if they are treated with empathy and compassion.
For more guidance on layoffs and resources, join OPHR Advanced today.
