This article has been written by Cécile Jenkins and Larraine Solomon for people with an interest in how leaders can help people during times of difficult change, and how they themselves can become more resilient too. This is the first of a 2-part series – the second article will be published by Cécile Jenkins next week.
Barely a day seems to go by without another news article or LinkedIn post announcing company layoffs. From Amazon to Twitter, Microsoft, Netflix, Meta and Vodafone, the list of organisations who
have announced a reduction in employee numbers seems endless. A combination of economic challenges, supply chain issues, technology advancements and investor expectations means that global job losses are unlikely to slow down any time soon.
While the fate of employees who remain is more favourable than their colleagues that have left, the experience can be equally as traumatic. If there are more cuts on the horizon, for the ‘remainers’, the fear that they may be next can be constant – turning into outright panic when they make a mistake or talk out of turn. An increased workload or level of responsibility is often a consequence of the changes, usually with no increase in reward.
Instead of optimising their performance, often the brightest and best talent are the first to vote with their feet. Staff turnover increases and productivity falls, impacting the customer experience and the reputation of the brand.
There are many ways that leaders can re-engage and inspire employees after layoffs. Here are 5 ideas to consider:
Acknowledge a sense of ‘survivor’s guilt’. Check-in regularly with employees, allowing them space to ask questions and voice feedback. Make sure that they understand the reasons for changes and be as transparent as possible about future plans. Employees appreciate the truth – even when the message is difficult.
Rebuild a sense of purpose. Research by McKinsey shows that 70% of employees say that their sense of purpose is defined by their work. This could be a good time to reignite the energy around the projects you are undertaking, and the impact their work is having on customers and colleagues.
Ensure people leave in the best possible way. The way a leader says farewell to employees reflects the culture and reputation of the company. Providing practical help, such as LinkedIn recommendations or job referrals as well as emotional support is often visible to everyone. How you treat people during a layoff is how survivors think you’ll treat them.
Focus on the future. Instead of piling more work on remaining team members, this could be a good opportunity to reorganise your workforce. Take the time to develop new plans, reorganise tasks, encourage new learning and realign responsibilities. Involve your team in this planning process – employees may relish the chance to learn new skills and do different work. Co-create a new vision for the success of the team.
Work with a coach. In a challenging business environment, the ability to work with a coach is especially important. As a leader, it’s easy to become overloaded with practic
al and emotional issues, particularly when you are also under pressure to deliver financial goals. A coach can help you to take a step back, clarify your professional and personal goals and redefine your leadership approach.
Examples of leaders who have handled layoffs well are few and far between! But, it’s worth calling out the approach from Brian Chesky, Co-Founder and CEO of Airbnb, during the pandemic.
If your organisation is facing similar issues, we will be delighted to help. Feel free to get in touch.
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