For workers and bosses, layoffs are a harrowing time for a company. Whether the cuts are due to decreased revenue or the “global uncertainty”, how you handle the layoffs matters to the people you lead – those who are let go and those who stay.
There have been some notable missteps by some of the largest companies recently, and avoiding the worst mistakes can be the difference between a reputation crisis for your firm or a lowkey and regrettable reduction in staff. The following best practices to managing a layoff may seem like common sense, but when you’re in the thick of notifying workers, it’s good to have a game plan in place that everyone follows.
Plan for a Crisis
It is intuitive that layoffs are a crisis to the workers who are being cut, but they should be considered a crisis to the company as well, making it important to plan for layoffs like any other crisis event. Putting thought into the where, when, why and how of layoffs can go a long way to mitigate reputational damage or keep your business on track to succeed in difficult times and re-emerge on solid footing. That means coordination between leadership, human resources, people and client managers, communications and legal. Create a game plan that keeps everyone clear on their functions and expectations.
As soon as layoffs have been planned by senior leadership, these teams should review and operationalize existing crisis management plans. If there aren’t existing plans, communications should draft an incident-specific plan that outlines a tiered response for localized action and potential outcomes all the way to national press attention, protocols by stakeholder, media relations practices and key messages about the layoffs.
Think Carefully About the Timing
Timing your layoffs is important to mitigating any overall damage to your brand. Choosing the right time to plan for and announce layoffs has an impact on remaining employee morale, laws and regulations, and business operations. Choose a time where major projects or project launches are complete, and that won’t disrupt the day-to-day of the business. Keep in mind that large-scale layoffs are subject to extra scrutiny, and regulations. Plan your reduction in such a way that it doesn’t cause mass disruption to your business.
In addition, for many companies with employees on various time zones, putting a lot of thought into when layoffs occur can reduce workforce anxiety. For example, the time between letting employees know layoffs are coming and actually executing those layoffs can be fraught and anxious for all involved. Let your employees know their status as soon as possible once the action has started, preferably with direct communication about what is happening, why it’s happening, and what employees can expect from you.
Show Empathy
Layoffs are hard for everyone, from leadership to the remaining employees and especially those who have been let go. If you’re laying off a few to a few thousand employees, remember that each of those numbers is a human whose whole life has been impacted by leadership’s decision to reduce staff. Clear, consistent communication along with resources like a severance or job-placement services can help dull the negative impact of a layoff. We’ve seen some companies offer mental health services for those laid off, which seems like a great idea.
As for leadership, it’s important to remember that there will be some people who are angry with your decision, and that cannot be helped. That said, there are people you can comfort through empathy. Definitely discuss options with legal, but a heartfelt note from the CEO or President to employees is a great idea.
Be Prepared for FAQs
Employees will understandably have multiple questions about the layoffs, during and after. Leadership should be prepared with a list of frequently asked questions and the answers. This consistent messaging will help reduce confusion and concern, especially among the staff that is staying, and contain rumors or incorrect information. All employees will feel a bit raw, so be prepared for questions that you haven’t considered or for emotions you weren’t expecting.
Monitor for External Coverage
Even with strong non-disclosure agreements and media policies, some now-former employees may have grievances they want to air publicly with the company. A strong media monitoring and social listening system can help you head off any further damage. Set up alerts on Google news for your company and leadership names, and check social networks for the same multiple times per day. While you may not be able to get every reference taken down or scrubbed, you can stay on top of steering the conversation back to your key messages.
Embrace Transparency
Be transparent about the reasons behind the layoffs. Openness and honesty with employees who stay will build trust through a difficult time. That said, it’s not necessary, unless you are a public company subject to Regulation D, that you air your own dirty laundry. For companies not subject to Reg D, no need to announce the layoffs via social media or a press release. For firms subject to Worker Adjustment and Retraining Notification (WARN) Acts, give your employees the notice necessary to be compliant, and stay transparent with them through the process of stressful waiting periods.
Through any crisis, you want to make sure you contain the issue, ensure the story doesn’t linger in the memory of media, social networks, and remaining employees longer than necessary. You especially don’t want your layoff mentioned in the myriad think-pieces about how not to handle a staff reduction, or catching the attention of regulators or lawyers.
