The pandemic forced many business leaders to relook at costs and make tough decisions regarding the size of their workforce. While the economy is slowly crawling back to normalcy, due to automation and social distancing norms, many organisations are still struggling with the furloughs and layoffs.
Layoffs and furloughs are inevitable at times. But you as a business leader can make the process smoother and less painful for the employees leaving the company as well as manage the morale of those who are still with you.
Here are 7 tips to help you manage the layoffs better.
Plan Well
It is very important to plan the layoffs well taking all the Department Heads and the HR into confidence. Your company may have been forced to reduce the size of your workforce due to various reasons like cost cutting, automation, closure of a particular business or department, etc.
Managers need to determine the basis on which the decision about who will be asked to go, (in case of furlough also the period) will be made. Plan the period over which the employees will be let go. Based on this, you will draft the communication plan for the laid off employees and the ones remaining in the company. Decide on the separation package that suits your company and the employees the best.
Ensure there is proper documentation of the process to avoid any biases and mistakes. You might need to consult your legal team to understand the implications if any.
Think of all possible implications of the layoffs and create contingent plans for any possibility that may arise. For eg. for certain roles, you might need to create a succession plan.
Be Empathetic & Respectful
Layoff is a very painful and traumatic event, not just for the ones who are being asked to leave but for everyone in the organisation. Recognise this and be empathetic towards the ones who are being laid off. There is bound to be anger and anguish amongst all the employees.
Inform them about the decision one on one; if not possible physically, over individual calls. Doing it over emails or group zooms calls is insensitive.
Explain the reasons for the decision. Listen to them. It is important to be respectful and compassionate. Make them understand that it was a tough business decision, and it does not in any way reflect on their performance or calibre.
Be Transparent
It is important that the employees know why they have been chosen to be laid off from amongst the others in the department or team. Every company has a different policy regarding layoffs – seniority, cost to company or performance. Communicating the truth is important because the employee has the right to know why they were let go. However unpleasant the conversation might be, it provides closure to the employee and they respect the transparency and honesty.
Be Objective
This goes without saying that while laying off employees, you need to be objective. Keep your difference, preference, likes and dislikes aside while deciding which employee needs to go. It is important to create a rule or policy and follow the same for all the teams and departments equally.
Be Supportive
Being supportive is the least that the employees expect from the company that they are associated with.
Provide support to the outgoing employees in finding jobs or transitioning into new jobs. You can partner with consultancy firms to help them update their resumes, prepare for interviews, find jobs.
You can write recommendations for them on social media sites like LinkedIn. Ensure they are provided with the best possible severance pay so that they can manage their EMIs and other expenses till they find another job.
Be in Touch
Your past employees are your best candidates when a new job position comes up. With the huge number of vaccinated people getting back to work, economies around the world are seeing growth. You might want to get your workforce back to the pre pandemic levels soon.
It is hence important to keep the communication channels with the ex-employees open. You can rehire them in better times. If you have treated them well during the process of layoff, they would be more than happy to join you back.
Take Care of Your Employee Morale
Layoffs can impact the morale of the existing employees. It is important to communicate with them and let them know what the company is doing to ensure there are no more eliminations. Provide whatever information you can about the company finances and future plans to assuage their fears and put a stop to rumours.
Well planned and executed layoff strategy helps the business leaders reinforce their commitment to the workforce. It allows you to regain trust of your current and past employees and build stronger bonds.
