3 things to do when layoffs are imminent

Ethics, a brand’s legacy, and treating people the way we want to be treated – all of these fly over the head when a company tries to save itself or shareholder confidence during a recession. Often, the impact of reducing headcount has implications far beyond a CEO’s ultimate goals.

For the ethically and emotionally intelligent CEO, CHRO and CFO, it is important to consider both the mental health of the surviving employees and the departing employees, as well as the company’s reputation. Before hitting the layoff button, organizations should ask themselves one question: “How do we want prospective employees and outgoing employees to feel about how we serve our employees?”

I’ve heard CFOs and CFOs say, “We don’t have the budget to pay people who don’t add value to our bottom line after they leave.”

This attitude has consequences for directors and managers in charge of implementing the redundancies. They complain, “I wish I could do something to take away my sleepless nights and guilt,” and “I wish I could do something to help my people get work.”

What if supporting departing employees actually had a positive impact on the surviving leadership team and – as a result – on the bottom line?

Immediately third of the world economy is likely to be in recession by 2023 according to the head of the IMF and Amazon who kicked out 18,000 workers in the first week of January alone, here are three options when layoffs become your toughest decision.

Related: Layoffs don’t have to decimate your company culture. Here’s how to downsize with respect and empathy

Choose your hero story for this new era

You remember the first wave of layoffs in the tech space in 2022, shortly after rate hikes. It was unlike anything I’ve seen before – and I was there for some pretty horrific tidal waves of layoffs during 9/11 and the financial meltdown of 2007-2008. Between 9/11 and the pandemic, departing employees harbored feelings of shame, humiliation, guilt and denial about being fired, and organizations were able to avoid the topic with their employee and customer brands relatively intact.

In the midst of continued interest rate hikes in October 2022, we began to witness a surge in “looking for work” badges on LinkedIn profiles. People took to heart the Brené Brown-style “vulnerability” and found CEOs and VPs sharing their layoff stories while asking people to help them find their next role. Undoubtedly, companies also accepted – uncomfortably – this new, more vocal behavior. No one and no brand could hide. In 2022, we broke trends, starting with the Great Resignation, then quietly stopping stop loudly. And companies have been judged by how they’ve treated each one.

Here are some questions for you as an HR director, CEO or leader of a team:

• What is your employer hero’s story for your people from onboarding to leaving?
• How does it relate to what your company stands for and who consumes the product?
• What do you stand for personally and professionally?
• What exit solution have you come up with for the company, the leader of the affected team, the departing talent and the survivors who need to move the company forward?
• Who supports you during this time?

Related: 8 Effective Tips for Executing Layoffs

The savior of social media

Remember the saviors on LinkedIn who rushed in to help people? Those who would offer, “Contact me if I can help you find your next job,” not realizing that their digital transfer of hope would actually drown them in requests they couldn’t review or meaningfully direct. It can quickly deflate and embarrass the most optimistic rescuer who rushes in to save people with the promise of a cruise ship, only to realize you have a kayak.

These benevolent saviors on LinkedIn were everywhere, and their performance was pretty heroic. But imagine two, five or even 100 people from your connections (and wider network) getting in touch: how do you avoid choking under the weight of requests?

Before jumping to the rescue, consider these questions:

• Which hiring managers, recruiters, headhunters or HR people have you worked with to share bona fide opportunities?
• Can you be more specific about how you can help? For example, can you spend two hours a week reading resumes, offering VC introductions, counseling, pitch deck reviews, interview exercises, and so on?
• If you hear that people in your network have been laid off, please contact them directly to ensure you are able to fully support their transition.
• How many people do you think you can help at any one time? One or two a month? Think about this carefully so that you manage your sense of success for yourself and those you decide to support.

Related: ‘Labor Hoarding’ Can Save You From Layoffs

The company owns the problem

Thanks to governance, ethics, compliance, good old-fashioned goodwill, and a sense of doing the right thing, many organizations have been adapting their firing systems for decades. Don’t be hard on yourself when, instead of getting the business back on track, you find yourself dealing with conflict, bad decision-making from others, sleepless nights, or feeling paralyzed with guilt or overwhelmed by your daily derailment from firing decisions.

Here are some options to help you leave your talent with a clear conscience:

For your internal team:

• Let your in-house coach focus on leadership and team development to hack the new era. This will help the team avoid overwhelming and underdiscussed guilt that affects innovation, get a sense of the possibilities for the year ahead and get the company on track. I wrote about this.

For the departing team:

• Hire a coach for three to six months for your fired talent. The coach can support their transition and help them deal with the trauma and job search that can take months depending on their area of ​​expertise.

Or,

• Hire an outplacement agency. These services typically provide a cookie-cutter plan that requires the outgoing employee and potential job seeker to interpret and independently execute the materials.

Or,

• Provide a budget in the employee exit package to pay for a coach.

Layoffs can transform companies for the better or for the worse. How an organization deals with those layoffs can affect its fortunes from that point on. Which path do you choose as a leader?

Related: Layoffs Are Not the Solution to Your Profitability Crisis. Here’s the simple 4-step process you should follow instead.