| Life After Layoffs
”Survivors” may worry about their own future and experience negative feelings such as guilt, insecurity, uncertainty, and distrust. Layoffs may also create increased workloads for those who remain, contributing to additional stress.
As a result, downsizing can lead to voluntary turnover that is much greater than the initial layoffs, which in turn can negatively impact organizational performance. Even small layoffs can lead to considerable unplanned turnover. For these reasons, organizational leaders should not underestimate the impact of layoffs on the remaining workforce.
How do organizations minimize the negative impacts of layoffs such as decreased engagement and unplanned turnover?
The first step is to communicate as much information as possible. Do not sugarcoat business projections or the potential of future layoffs. Employees should never be told, “This will be our last round of layoffs.” Even if you believe that to be the case, it is not advised to make that commitment publicly. Employees should understand the challenges the organization is facing. Management may consider soliciting input from employees regarding ways the organization can adapt to the economic climate. Employee feedback can be very valuable and requesting it will also promote employee engagement. Organizations must continuously communicate and use all appropriate delivery vehicles. Some may include company meetings, departmental meetings, and informal conversations.
Managers should consider scheduling departmental meetings or focus groups that provide employees the opportunity to share their concerns and anxiety. One-on-one meetings with managers and their direct reports also provide a forum for such discussions. Providing employees with an opportunity to share concerns can provide organizations important insights that can be incorporated into engagement and retention initiatives. They also provide a forum for management to address those issues that are top of mind for employees, minimizing negative grumblings and dangerous rumors.
Finally, employers need to communicate the reasons employees should stay with the organization by sharing specific business plans that include strategies to adapt to recent economic conditions. Organizational goals and performance indicators should also be communicated so that employees understand there is a plan and see how they can influence the future progress towards those goals. This type of initiative will help to decrease any feelings of distrust and minimize anxiety associated with a lack of communication. Keep in mind that in the absence of communication, employees will typically fabricate something that is far worse than what is actually happening.
During uncertain economic times it may become increasingly unavoidable for organizations to conduct layoffs. However, when top performing employees become disengaged in their work and voluntarily leave to pursue new opportunities, organizations suffer and services may be negatively impacted. In order to retain those high performers and ensure positive morale and continued productivity, remember to focus on the staff that remains after a layoff. A productive life after layoffs requires an intentional focus and should be proactively addressed.
Author: Robert Krajewski, Associate HR Business Partner, Helios HR
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The national unemployment rate recently rose from 6.5% to 6.7%. For some organizations in the Washington Metropolitan Area the slowing economy has already led to layoffs, and others anticipate reductions in force in the near future. During a reduction in force it is typically more common for employers to focus attention on those individuals who are exiting the organization. Although it is important to ensure a smooth transition for laid-off employees, it is equally – and arguably more – critical to focus on the employees who remain (sometimes referred to as “the survivors.”)| Issue 12 | December 2008 |
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What You Must Do Before Year End - Avoid Compliance Headaches
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