Lay off with empathy

Vijay (name changed) had never before fired a single employee in a career spanning 3 decades, but now was forced to lay off 40 employees at one go. While struggling to balance the business imperative with concern for employees, his worries included the impact of the news of the large-scale termination on the rest of his team. His biggest fear was that someone might take the drastic step of attempting suicide.

(Fortunately, the discussions went better than expected – while several broke down, some pleaded, and others were angry – at least none attempted suicide.)

Breaking the news of layoffs or salary cuts in the current scenario is extremely challenging. You may have terminated poor performers in the past, but now you may be in the unenviable position of letting go employees as a consequence of factors beyond their control. Even exemplary employees are left with a fraction (if they are lucky!) of their well-deserved pay packages.

How can you convey this difficult information to employees in a way that is least damaging to their well-being and that of the company? Here are some points to keep in mind.

  1. Do it yourself.  It is best if the information is communicated by a person in a senior position. Take ownership, even if it wasn’t your own choice – you owe it to the person at the receiving end. Further details then could be coordinated by HR or others.
     
  2. Plan beforehand. Get all the required information before actually speaking to the affected employees. Know the reasons behind the decision, even if all of these cannot be communicated directly. Also have an understanding of any benefits the employee will be eligible for and whom they can go to for more details. Get your thoughts in order and plan what you will actually say to the employee.
     
  3. Meet the person individually. Ideally this should be done in person, but if that is not possible, a one-on-one video conference would work.
     
  4. Speak concisely and clearly. Don’t beat around the bush and use long drawn explanations. If possible explain briefly the rationale for the decision – research suggests that people tend to accept unfavourable decisions better when they feel the procedure was fair. However, it is important that you communicate the finality of the decision without leaving room for misunderstanding or false hope.
     
  5. Don’t express your misgivings. Whether or not you feel the decision is fair, at this time they need to see solidarity in the leadership. Taking their side at a time like this is not going to help them in any way, only make it more painful for them.
     
  6. Express appreciation, respect and compassion. How you treat someone on their way out does not go unnoticed by the rest of the organisation. Especially at a time like this, it can do wonders for the morale, so make sure you express appreciation in specific terms of all that the employee has contributed to the company.
     
  7. Allow for expression of feelings but not debate. It is natural for the decision to be met with resistance and unhappiness. Allow the person to express this but do not attempt to defend your stance, irrespective of your personal opinion on the matter. The agenda is to convey the decision, not to convince or argue and certainly not for you to win brownie points.
     
  8. Support them. Offer to give them a good reference or put them in touch with recruiters. Check-in on them after allowing them a day or two to come to terms with the news. If your company has an Employee Assistance Programme consider extending it to them for a short additional period.

And don’t forget the ones who remain. This is a time of uncertainty and having coworkers laid off can only increase the anxiety for the rest of your teams. It is important to speak to them, inform them about the decision and allay fears if possible. But do keep the focus on what needs to be done to move forward.  

 

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