No one likes layoffs and most companies are sensitive to the process – for both the people who are impacted and for the position of the organization. Human Resources does a decent job of providing guidance on the policies and procedures for managers, as well as resources for people who will lose their jobs.
But until you go through it as a leader, you don’t really get a sense of the importance that you play in the lives of the entire team – and that means everyone – the people who will be leaving and the employees who will stay on. The impact is lasting. How you handle it can change how employees view the company long term. It can build or crush loyalty – and that impacts business results. You are the company during those moments.
Here are 7 tips to consider.
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Over communicate, even if you don’t have the answers. Get the team in a room, or on the phone if it’s a virtual team, and talk about what you can. Don’t avoid the big elephant in the room. Acknowledge that it’s awkward and difficult, and tell them what you are able. There will be things you may not know. Say so. And promise to keep them up to date as soon as you can. Follow through.
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Get into business details. Don’t assume that everyone knows the financial situation of the company and reads the analyst reports. Talk about market trends, your market share, and how the company is positioned. Talk about the future strategy if you can. If the company has been successful, it’s probably been forward thinking and that means getting right sized before the market changes. Help them understand why the downsizing is happening – even if it’s hard.
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Share your experiences if you have them. Most of us have gone through this as an impacted employee, as a manager, as a colleague, or as a friend. Making it personal helps with empathy and softens the message. You may have experiences of your own or that you’ve observed that some people can relate to. Be relatable.
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Listen. Everyone is going to take this a little differently. Let them. Some will be angry, some will be complacent, some panicked, and others will completely withdraw. Listen to all of them. You can’t fix it all, but you can allow them to feel validated and heard.
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Recognize those who are leaving, and enable the rest of the team to share in that. Not everyone will want to be recognized or want to participate, and that’s ok. Everyone gets to choose for themselves. Thank the people who are leaving and recognize their contributions. Let others be a part of that process. The goal is respect and dignity for those who are leaving, and a positive sense of closure for those who are staying. Be an example of how to treat people even in the most difficult of times.
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Once the impacted employees leave, you’re not done. Spend time with every one of the people who remain. Listen some more. Ask them for their input on how the company can grow, do better, whatever needs to be done. Thank them for their dedication during the difficult time and ask for their commitment to move on to this next chapter with the organization. Tell them how important their contributions will be to the future of the business.
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Communicate some more. Stay close. Be approachable. Be positive and excited about what’s next. Turn the corner and get people fired up. You’ll know if you’ve managed the process well up to this point by how the team responds to your direction in this last step. If they buy in, if they trust you, and if they’re willing to follow the plan, they you’ve done well.
Downsizing is never easy. While it’s one of the most difficult times for an organization, it’s also an inflection point. Downsizing happens usually because the organization needs to become leaner, more nimble, and more focused. To really achieve those goals, the remaining team must be committed to the future plans. How they view and experience the downsizing can make or break their commitment to you as their manager, and to the company. Doing it right – with respect and support - is good for people and critical for business.