Ayesha J. Whyte, Chief People Officer & Employment Attorney at Dixon Whyte LLC with expertise in employee engagement, inclusion & culture.
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Economic uncertainty can cause company leaders to have to make difficult decisions regarding workforce restructuring. Layoffs are stressful, for both employees and those who are managing the process. However, you can reduce stress and raise morale if you conduct layoffs thoughtfully and with employees in mind.
Communicate Clearly And Empathetically
When communicating a layoff, it is vital to lead with empathy. You can, and should, prepare your messaging beforehand. It is imperative that the employees leaving your organization be treated with dignity and respect. Speak directly to employees about their future and fear of uncertainty, not like you are reading off of a script. Describe how the company came to a place where layoffs are necessary and why restructuring the current workforce will assist in correcting the issues that have presented themselves. Give the employees time to absorb this news, and open the floor to questions and comments.
Tip: Anticipate the questions that those affected will have and how you will respond to them. Some questions may include, “How many others are being let go?”; “What does this mean about my bonus this year?”; and “Can I ever be rehired?”
Meet With Affected Employees Individually
While you can announce the layoff formally companywide, you will want to meet with each employee individually to share they are being laid off. Meeting individually shows respect to your employees and their time with the company.
During this meeting, you will want to sincerely thank the employee for their contributions that have helped the company thus far. Also, be honest with the employee about where the company is headed and the reasons that necessitate the layoff. Be ready to share key information such as their last day of work, their official separation date (if different), the amount of any severance pay being offered (if any) and information regarding how to apply for unemployment insurance should they choose to. You should also be open to questions and feedback during this time, as well as be prepared to provide this employee with resources and additional information to help their transition.
Tip: Know that during the meeting with the employee, they will not be able to absorb all the information they are receiving. Follow-up in an email with any critical information (i.e., separation agreement, COBRA paperwork, information on vested equity, 401(k), life insurance continuation, etc.)
Practice Flexibility When Possible
When the layoff decision is shared with an employee, they can go through a range of emotions. They will most likely feel a sense of loss of control, fear, anxiety and anger. All of these feelings can be overwhelming. Consider what, if any, flexibility can be extended to the employees that will be laid off regarding their last day in the office and how they say goodbye to colleagues and/or gather their personal belongings. Additionally, while a reference letter or wiped company laptop may seem like a small gesture, it can show that you sincerely valued someone as part of the team and wish them future success.
Tip: Connect with your employee assistance program (EAP) provider to see what resources are available to help during the day of layoffs. They may be able to provide a dedicated therapist to be on standby should your employee need to speak and process what has just happened.
Present A Positive Path Forward To Those Remaining
While layoffs are difficult, organizations perform them to be positioned for future success. A huge part of that success lies with how the organization moves forward following the layoffs. Be sure to meet with the retained employees to ensure they know how critical they are to the future of the company and how the difficult choice was made to terminate the exiting employees. Explain how the work of the departing employees will be distributed, absorbed or outsourced. Share the positive results anticipated as a result of the workforce restructuring so remaining employees can feel confident in where the company is going and their part in it.
Tip: Prepare managers to speak with remaining employees post-layoffs regarding any lingering fears and concerns. Tell managers to set aside an hour a day in their schedules over the next week just for employee conversations should anyone want to talk or be heard.
Unfortunately, layoffs are likely inevitable during Q3 and Q4 of 2022. While layoffs are difficult for everyone involved, utilizing the tips above can make the transition less confusing and overwhelming for affected and remaining employees.
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