A Better Way to Say…
I’ve been a Human Resources professional for over 30 years and I can’t begin to count how many times I’ve counseled managers struggling with how to let employees go for poor performance. Often, I’d say, “They fired themself.” The idea was that the employees were given a chance to meet the company’s performance standards, but at the end of the day, this simply wasn’t the job for them. Somehow, that guidance allowed me to sleep at night.
But there were nights I couldn’t sleep. More often than not, those nights preceded the days when, as a senior executive for a variety of technology companies (small and large, private and public), I had to terminate large teams for reasons beyond their control. Downsizing, layoffs, “right-sizing” restructuring… call it what you will; it’s by far the worst part of the job and I will never feel differently.
On December 1, Better.com terminated 15% of their global workforce. For those who observe, that was the first day of Chanukah, just 24 days before Christmas, 26 before Kwanzaa, and for many, a time for family gatherings, gift-giving, and other celebrations. How do these employees face their families with the news? Many companies, particularly in the technology sector, often shut down the week between Christmas and New Year's, reducing the chances of laid-off employees finding another role before year-end. What would the cost have been to wait until January?
It took Better.com’s CEO 90 seconds to get to the point…..a point that affected the almost 900 employees on the Zoom call, learning that it would be their last day with the company. By the CEO’s admission, this was only his second time, so I wish he had been given the opportunity to seek additional guidance with this enormously challenging and sensitive task.
Perhaps the following will benefit him for next time...for sadly, there will likely be a next time:
1. Consider the time of year. December is a really tough month to find a new job and to face your family with news that you’ve lost your job. Can you wait until January? Companies should consider the impact not only to the laid-off employees but also those remaining with the company and how it impacts culture and engagement While the accrual of the financial impact and cost of severance may be better in the current year;is it worth the cost of morale?
2. Inform affected employees individually. I know this sounds incredibly inefficient, especially when large groups of employees are impacted, but coaching managers to help deliver the news would feel more authentic. They have a relationship with the employee and can better gauge how the employee will react.
If it’s tactically impossible, hosting smaller group sessions - 20 people max, so that you can make it more empathetic, see their reactions, give each an opportunity to process the information. Have HR on the call with you to help respond to general questions.
3. Start with the headline. Don’t beat around the bush; get to the point. This allows time for the person to process the message. The notification meeting should be short, allowing just enough time to say all that needs to be communicated, and for necessary questions from the employee. Ten or fifteen minutes is probably a maximum time for this kind of meeting. If it lasts any longer, the issues being communicated become muddled.
If your company is facing this situation, please seek professional advice and find a better way. Also keep in mind that there are legal implications, called “Adverse Impact” which will need to be addressed. You might also want to consider each employee’s personal circumstances; no one should be laid off on their birthday, for example.
Here’s a sample script:
Start with “hello”. ”I appreciate that you could meet on such short notice.” Keep your greeting friendly but succinct.
Get to the point. Indicate the facts that have led to the layoff situation. “As you know, we are realigning resources within [COMPANY] to make a more lean and efficient organization. As part of this realignment, we need to eliminate a number of positions and unfortunately, yours is one of the roles that is being eliminated today.” [That will take less than 20 seconds] Pause. Breathe. Let them do the same. Then provide more context if possible. Make this about them, not you.
4. Listen and be supportive.
Allow the employee time to react.
If the employee is upset, say, “I understand that you are upset”, and express your support and understanding. Acknowledge the feelings.
Avoid promising anything you do not really have the time or inclination to do. It is important to emphasize you and HR are here to help them move forward (e.g., you are willing to make time to talk to the employee further; provide networking suggestions).
Do not argue with the employee
Do not discuss any other employees
5. Discuss next steps (you can leave this part to HR):
Exit process (try to provide all details in a document-chances are they are only half listening at this point).
Returning Company equipment
Packing up belongings (or have them shipped)
If there’s a separation package
When systems access/email will be shut off
6. Communicate to the rest of the organization. Once all impacted employees have been notified, send a communication to all non-impacted employees. This is an opportunity for the CEO to express their perspective and to assure the remaining employees that there are no additionally planned lay-offs. Then have department heads hold smaller team meetings to answer questions and help the team come to terms with the loss of their colleagues.
Do’s and Don’ts for Talking with Impacted Employees
DO:
● Be prepared.
● Maintain confidentiality.
● Speak to the employee in a private place.
● Get right to the point.
● Recognize the employee’s contribution to the department and Company
● Briefly and truthfully explain the reason for the layoff
● Listen to the employee. Allow him or her to respond
● Restate the information if necessary.
● Listen without being defensive.
● Be available to address the employee’s concerns about the layoff
● Honor the employee’s personal space.
● If you feel at risk during the conversation, remove yourself from the conversation.
DON’T:
● Engage in personal small talk.
● Allow the meeting to be interrupted.
● Use humor.
● Defend, justify or argue about the decision
● Identify others who are being laid off
● Make comparisons between employees.
● Try to minimize the situation.
● Personalize the employee’s response.
● Say that you disagree with the decision.
● Get into the role of counselor for the employee.
● Promise anything you cannot deliver.
● Advise in areas outside your expertise (benefits, COBRA, etc.).
GUIDELINES FOR MANAGING NON IMPACTED EMPLOYEES THROUGH TRANSITION
It can be a difficult time for the employees who remain employed after a layoff. They might have questions, concerns about job security, or a negative attitude. Keeping the lines of communication open with your remaining staff is important so that they can move past the layoffs and focus on their work.
You should:
● Be cognizant of workload left for remaining employees.
● Communicate on the state of the business and plan for the future.
● Acknowledge the feelings and concerns of the employees.
● Communicate how the work will get done.
● Have clear objectives and goals for your employees to focus on.
● Be available.
You should not:
● Get defensive.
● Put down the laid off employees.
● Use inappropriate humor to try and release tension.
● Give any information you are not sure about or make any promises you cannot keep.
You will also need to meet individually with the employees who may be taking on additional job responsibilities. Acknowledge their feelings and concerns. If possible, keep them involved in the decision making process when making new assignments. People who are left after a layoff occurs can experience clusters of emotions like fear, insecurity, uncertainty, frustration, resentment, anger, sadness, depression, guilt, unfairness, betrayal, and distrust. Ongoing communication with your employees is key to helping them work through any of these emotions.
TO DOWNLOAD QUESTIONS AND ANSWERS FOR IMPACTED AND NON-IMPACTED EMPLOYEES, COMPLETE THIS FORM:
A special thanks to Natasha Dure for her contribution to this article.
