MetLife’s 2024 annual U.S. Employee Benefit Trends Study revealed that across all generations, employees overwhelmingly want to feel cared for by their employers; they want to know that “someone cares.”
Yet a Dec. 23, 2024, Wall Street Journal article, “Letting Personnel Go Gets Impersonal Touch,” showed that when it comes to layoffs, companies like General Motors, Sotheby’s, Intuit and Tesla adopt the reverse approach—sending termination emails in the middle of the night, locking employees out of their devices, or firing employees via Zoom calls. In addition to being cowardly and inhumane, the message to employees is clear: No one cares; you’re just a number.
Decades of management research have demonstrated the consequences of such impersonal approaches to layoffs: dramatically higher voluntary turnover—often among a company’s best performers—in the year following the announcement, severe damage to the employer’s brand, demoralized survivors and employee burnout, to name just a few. Ubiquitous social media posts magnify these outcomes among customers and current and prospective employees.
Research also reveals that these outcomes can be avoided by adopting a more humane approach to layoffs that recognizes the need to send positive messages to those being let go and the survivors who remain. Here are three best practices.
One, don’t use layoffs as a “quick fix” to achieve short-term goals in the face of long-term problems. Consider other alternatives first. Are layoffs part of a long-term strategic plan or the only plan? Although it seems paradoxical, share management’s concerns with employees and seek their input.
They may have insightful ideas that make layoffs unnecessary. Be sure to involve “star” employees or opinion leaders, for they can help communicate the rationale and strategy of layoffs to their fellow employees.
Think about those being laid off
Two, if layoffs are necessary, the immediate supervisor, a division head, or other individual with the authority to hire and fire should meet one-on-one with employees who report to them. Even employees working remotely should at least get a telephone call from their supervisor. That message cannot be delegated to HR.
Best practices include severance based on years of service, hiring preference for open jobs, and outplacement assistance. To convey some sense of personal control, and if possible, allow employees to choose a date they will depart within a reasonable window of time.
Remember the ‘survivors’
Three, give survivors a reason to stay and prospective new hires a reason to join. As one set of authors noted, “People need to believe in the organization to make it work, but they need to see that it works to believe in it.” Ultimately, surviving employees will provide the innovation, superior customer service and healthy corporate culture that will drive success and serve to attract and retain top talent.
Treating departing employees well is an opportunity to send an important signal to survivors that if their time comes, they too will be treated well. Don’t squander it.
Credit: Source link
