Leading After a Layoff
Leading after a layoff is one of the most difficult experiences a leader faces. Selecting who will be terminated and who will be retained are gut-wrenching decisions because, after all, these are real people who have families and financial commitments. Then there are the employees who were retained. How do you reengage them when doubts about their future abound?
Center for Creative Leadership has written extensively about the learnings and opportunities that come from difficult situations: Learning from hardships. Yet, knowing that learning comes from the leadership experience, it doesn’t make it easy.
After a layoff, leaders can take several critical steps to ensure employees remail engaged and committed to the future.
Communicate openly and honestly. Layoffs are a time of great speculation. Expect employees who were retained to be less engaged than normal. This is expected. Questions abound: when is the next round coming? Am I doing well enough to be retained? What other choices do I have right now? As a leader, share what you know, and share what is still unknown. Is this the last of the layoffs? We don’t know, but your jobs are secure for now. Be empathetic and compassionate; make space for employees to discuss this openly and honestly.
Provide support and resources. Layoffs can produce anxiety, for both leaders and employees. Be aware of the support that’s available for retained employees from HR, or from the Employee Assistance Program. Nearly every organization offers this service, and yet they are often underutilized. Communicate to employees the services that are available and remind them that all services are confidential, and that utilization is never reported back to the leader.
Realign responsibilities. With fewer employees should come less work. It’s amazing how seldom that happens! Stories abound of dedicated employees who say, “yes, I still have a job, but now I’m doing three jobs instead of one.” After the layoff, it is important to gather the team and discuss what is mission critical and what can wait. This realignment ensures that essential responsibilities are adequately covered while preventing burnout among the team. Leaders who fail to do this soon after a layoff are seen by their team as weak or don’t have their employees’ backs.
Foster open discussions and share recognition broadly. The employees who are retained often feel shocked and worried. They often wonder why they were asked to stay while others were not. Leaders should hold regular team meetings and 1:1 discussions and listen to worries from team members. Actively listen, but avoid trying to solve their problems. Share with them what they do well; be specific not only about what they did, but how they did it. These discussions rebuild trust and maintain a positive work environment.
Focus on employee development. Layoffs can create opportunities for teams. Leaders must assess the skills and interest of remaining team members and find opportunities to learn and grow. Explore ways employees can learn from each other or help them find a mentor. Teach the team something new.
Monitor and address well-being. Pay attention to signs of stress, anxiety, or disengagement. Encourage work/life balance, particularly by realigning priorities. Promote wellness services inside the company and remind them to take advantage the Employee Assistance Program. 1:1s are an ideal vehicle for assessing employee’s well-being, so give these priority.
Remember, every layoff situation is unique. Leaders must adapt their approach based on the specific needs of their organization and employees. Remember, while it’s great to be a company steward, it is vital to connect with employees to make sure they stay and remain engaged.