Handle With Care: Motivating After Layoffs
September 23, 2008
Layoffs are a nightmare for everyone involved, but managers can alleviate much of the anger and fear that remains after the pink slips
By Carol Patton
Back in February, Womble Carlyle Sandridge & Rice did something that law firms rarely do: It streamlined its workforce by laying off 45 support staff in its 11 offices along the East Coast.
"This was quite a blow," says Carmen Canales, chief talent officer at the law firm, based in Winston-Salem, N.C. "People were in fact scared and surprised, because for a law firm or professional services environment, this is not something that happens every day."
Layoffs are among HR's worst nightmares. Telling people they've lost their job can be a difficult or even traumatic experience, not just for HR or the employees about to leave, but also for the employees who remain. Numerous questions pop up in their minds. Will there be more layoffs? Were the other employees treated fairly? Will I be next?
Many HR professionals are savvy at helping fragile employees who've lost their jobs transition to new careers or employers. Offering severance packages, a job search counselor, training and other forms of assistance is common. However, HR must pay close attention to all workers, not just those left behind. Productivity and job satisfaction can plunge if employees aren't motivated, engaged, treated fairly, reassured and kept continuously in the loop.
Promote the Truth
Almost every day, newspaper headlines announce employee layoffs. Ford Motor Co., Starbucks, United and Continental airlines, Polaroid Corp.…the list seems endless of employers that are closing plants, downsizing or streamlining their business operations.
Womble found itself in the same predicament. This was the first layoff the company had ever experienced. Still, Canales suspected everything would turn out well if the people who were being laid off were treated fairly and if the remaining employees knew it.
So on that fateful Tuesday, 45 employees were notified that they would lose their jobs. Canales says what came next softened the blow. They were offered immediate support or counseling by a local outplacement firm. Some received severance pay for one month, others for longer. They could also attend a series of how-to workshops that covered a variety of topics, such as interviewing or résumé-writing techniques, or, depending upon their position and tenure, could work with a personal job coach for several months.
That same day, the remaining 1,500 employees were told about the layoffs through a series of meetings and individual conversations with management. Canales says discussions revolved around why the layoffs were necessary, what the former workers received and how the firm would proceed.
Canales adds that the firm's managing member—Keith Vaughan—traveled to every office over the next several weeks to help ease employees' fears and address their questions about the firm's plans for the future. By having an effective communication outlet, employees could talk about changes in a positive way and see how they could be more productive.
"We did have lots of meetings," Canales says. "We told them that people were offered fair transition services, that we had a good strategic plan in place with the right amount of staff. We said, 'We're happy to have you here and want to know what we can do to make you feel more comfortable.'"
Since then, she says, managers constantly engage employees by encouraging them to come forward with creative ideas on how their office could be more efficient.
"That's motivating, because people are starting to see that what they say matters," Canales says. "We'll keep asking [for their input] and where possible, use it to [impact] the strategy of the firm to serve our clients and talent well, to keep the talent we have here, keeping them happy and engaged."
Open Communication
Many companies still believe it's best to provide employees with minimal information about layoffs to prevent them from talking about it. But just the opposite is true.
"In the absence of information, people make up stuff and panic," says Simma Lieberman, who owns a business consulting firm that bears her name in Albany, Calif. "There's resentment, and they get very paranoid. HR needs to stand up for those being laid off in terms of how they're treated and the benefits they get."
As an example, she points to one technology company that hired her several years ago to deal with the aftermath of a layoff. The company laid off more than 200 people, many of whom were preparing for retirement. They received no benefits except outplacement services for one day. Security guards escorted them out of the building.
Senior management didn't provide any explanations or communicate with existing staff about what had occurred, which turned otherwise loyal employees against the company.
"It was horrific what the company had done," says Lieberman. "The remaining employees were so demoralized. I couldn't fix it."
Not every layoff is a one-time deal. Companies frequently engage in several rounds that create workplace anxiety and tension, which in turn negatively impacts the workforce.
Back in the early 1990s, when Ron McKinley was the vice president of Long John Silver's fast-service seafood chain, he says half of the 600 employees at the company's headquarters lost their jobs through a series of layoffs.
Tensions rose. Some employees started to panic. So McKinley went from unit to unit, talking with employees in small groups.
"I said, 'The very best thing anybody can do to prevent being laid off is to do his job well,'"says McKinley, now vice president of HR at Cincinnati Children's Hospital Medical Center in Ohio. For some, just talking it out helped relieve their anxiety. For others who were more visibly stressed, he told them they could be jeopardizing their health and suggested that if they wanted to quit, HR would help them write a résumé and find another job.
This type of approach demonstrates compassion. He says it helps employees have closure and gracefully exit the workplace with their self-respect and dignity intact.
The same holds true for employees who will not be laid off. HR needs to engage them in conversations, too. Tell them that they won't be affected and to keep performing at their high level, which at the very least, will boost their morale.
Meanwhile, McKinley suggests that HR cover its bases by administering a few small "pulse" surveys. He says that's partly how his department finds out about employee confusion, ugly rumors or if there are employees—such as new hires—who are in the dark.
Nothing can de-motivate employees more than a layoff gone wrong.
Editor's Note: For more on incentive strategy, read "Tips for Post-layoff Motivating.
Send comments to feedback@incentivemag.com.
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