Layoffs will probably always be part of business. They are certainly a prominent feature of this year’s climate. Other companies and industries will have their moment to right-size their workforces. And then once this wave subsides, another will come in the future. Letting people go will never be fun or easy.
But layoffs can be done with humanity. And as leaders who aspire to be humans first, it is our responsibility to do everything we can to conduct layoffs with humanity. Given what we know about the power of current, past, and future employees to make – or break – our brand, it is also in our business interest. Letting people go humanely can be done in three dimensions.
Don’t Do Layoffs
It might be too late, or you may not have control over whether layoffs are done at all. But for leaders in a phase and position to consider whether or not you actually have to let anyone go, think twice.
The negative impact of layoffs in terms of lost productivity, disengagement among remaining employees, and decreased employer loyalty is huge and frequently underestimated. Companies that were quicker to cut costs were less likely to recover well from the 2008-9 recession, according to Harvard Business Review. So while immediate cost cutting might be a non-negotiable, if you can do it in other ways than letting people go, try that first.
Do you really have to push those people out, or might there be another option with less long-term … [+] cost?
Better still, plan your hiring to minimize the risk of future layoffs. Don’t overhire – use project-based work, contractors, and other forms of flexible arrangements that sets clear expectations for you and workers, avoiding a dependency that you can’t honor. And when layoffs do happen, encourage reflection and openness from the leaders who made those hires about whether they could have hired differently in the first place.
How To Do Layoffs
Once you reach – or receive – the decision that people will be let go, you have unlimited options in terms of how you will do whatever your role is in that process. Whether you are delivering the news, watching it happen to your direct reports, or learning about it after the fact from colleagues, you control your behavior toward the people who were laid off. And your choices will impact them, as well as the team left behind.
Transparently
No matter how scary or difficult it feels, transparency always wins. Communicate as early as possible, and often, before, during, and after the layoffs are announced. Honor legal and risk mitigation needs, but push back against overly cautious approaches that serve the company but hurt the individuals being let go.
If you are an observer to the layoffs, don’t pretend you don’t know they happened. It doesn’t serve anyone to bury your head in the sand. Avoid survivors’ guilt and reach out to teammates and friends who’ve been laid off to let them know you’re open to whatever requests they may have for help, whether a rant or cry, introductions to future employers, or help retrieving personal items from the office.
Dignity is an important part of humanity that can be protected – or destroyed – in layoffs.
Kindly
Again, your legal team might have strongly worded advice about the ‘cleanest’ way to do layoffs. These considerations are important. But they must be tempered to maximize kindness to the people being let go. Remember that these were, until moments ago, people who you paid to literally be on your team. The value and trust of that relationship does not evaporate instantaneously because your business cannot sustain the financial obligation.
Prioritize kindness as a lens as you define the process, language, and terms of layoffs.
Supportively
Provide as much support as you possibly can for the people you are letting go. Consider what you might offer to help them land next jobs, as well as managing financially and emotionally until they start that next job. Resources to provide include informal – and free – things as well as severance payments, COBRA insurance, and coaching or other outplacement services.
Open source lists of ‘available talent’ organized by peers on behalf of their former colleagues have become commonplace since the WeWork collapse. Do whatever you can to facilitate and support that and other forms of peer support. It doesn’t cost you anything other than perhaps some hours of [remaining] employee time, but has huge benefit for those remaining employees feeling useful, as well as those who’ve been let go.
Finally, offer support for the ‘survivors’ as well. And not in the form of free pizza. They’ll need ongoing transparent communication and reassurance about what’s next; help and recognition for the additional work that falls onto their plates; and coaching or counseling for the grief of losing colleagues.
Provide as much resource as you can for people on the way out.
Clarify Why The Layoffs Happened
Engage as broad an audience as possible in an honest evaluation of why the layoffs happened. Recognize external factors that surely played a role, but don’t exclude the internal issues that could have made them less likely. The goal is not to cast blame for any of those internal issues, but to learn from mistakes, such as over-investing in a new product line too quickly, or failing to retrain staff in line with shifting consumer demand. Owning errors like this is what differentiates organizations that weather inevitable economic downturns better than others.
Finally, connect the higher purpose that your organization was and is still trying to pursue to the fact of these people being let go. Make meaning of the layoffs as an enabler of that organization-level ‘why,’ and double down on the why, connecting it to the day-to-day work of everyone who’s still there. This does not look like a naïve and blindly optimistic recitation of the mission, vision, and values. But rather an earnest and specific explanation of why the layoffs were necessary, and what they will enable the organization to achieve going forward, toward its higher purpose.
For a textbook example of all of these humane approaches to layoffs, read Brian Chesky’s open letter after Airbnb’s round of layoffs at the start of the pandemic in 2020. From which they have brilliantly recovered, by the way.
Letting people go is never going to be easy or fun. But it is highly likely to be part of business for most leaders. So if you aspire to be a human, or people-first leader, you’ll have to learn to do layoffs with humanity.
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It is undeniable that times of economic stress are difficult for any organization and its employees. When hardship hits, it is often necessary to enact layoffs in order to remain financially viable. Knowing how to navigate layoffs with humanity can help an organization maintain morale, increase goodwill, and provide support for the affected individuals.
One of the most important ways to show humanity during times of layoffs is to be transparent and honest with your employees. It is important to let them know that you are exploring all options and that layoffs are a last resort. It is also important to make sure that you listen to their feedback and stories in order to provide support.
Second, provide ample support and resources to those who are faced with layoffs. Having a clear severance package is important and can demonstrate overall commitment to the wellbeing of your employees. Offering continued access to benefits, outplacement services, or other resources can show that you care about their future, even beyond the company’s walls. It is also important to find a way to remain in contact and encourage former employees such as helping them to find a new job or providing a reference.
Third, ensure that you are treating everyone fairly and equitably. Showing respect and appreciation for one another can help to make layoffs seem less daunting to those affected. Furthermore, ensuring fairness and transparency will help to maintain trust among your employees.
Layoffs can be devastating for any organization, but a team that navigates them with humanity can make them seem less daunting for all involved. Being honest, providing support and resources, and showing fairness and respect can help an organization maintain morale and trust even through difficult times.
