Layoffs

Sadly, layoffs continue, although recent statistics show that they’ve slowed.

What’s the fallout from all those disappointed workers? Three things you need to

manage:

1.

An increase in workplace claims of discrimination, harassment and

Our own office has been busy with more

investigations than ever, spanning the spectrum from garden variety

harassment to corporate loyalty issues.

2.

Survivor paralysis. Most companies don’t pay enough attention to those

left behind, assuming that they can just “get back to work.” Unfortunately,

too many people spend their days stuck in the paralysis of waiting for the

other shoe to drop, fearing that they will be laid off next, or surfing the

internet for a job they believe will be more secure.

3.

Reputation problems. If you’ve gone through a layoff, what have you

done to repair your reputation in the marketplace? What will future

employees, shareholders and other stakeholders be thinking about you down

the road?

While all of these unintended consequences of layoffs hurt, you can soften the

blow by following a few simple rules.

1.

Preventing an increase in claims. When you’re laying someone off,

treat them with dignity and respect. Studies show that people who are

treated well during layoffs file fewer claims. Treat them like humans:

don’t be mechanical, and tell them that you’re sorry. Unless you have

real security concerns, don’t pounce on their computers and march them

out in front of their friends with two security guards herding them

through the front doors. Allow them some privacy to pack up their things

and say good-bye to their co-workers.

While this may seem

like an unnecessary expense in a time of economic stress, again, studies

show that people who have help with the transition file fewer claims. It’s

also just the right thing to do.

If people have

genuine performance problems, you should have been giving them that

feedback and documenting the problems all along but don’t surprise them

with a termination that’s really a layoff. Not only does this lead to

wrongful termination claims, you can devastate the self esteem of a good

worker who did nothing wrong. One of my clients, a law firm, did just

this recently — against my advice. Word hit the streets and these talented

and hard working associates had a challenging time finding new jobs

with that black mark on their records. There’s no excuse for

unnecessarily ruining someone’s career.

2.

Survivors need tending also. It’s unlikely that they will be able to just

get back to work without help from you. Communicate, communicate,

communicate! While you may not know exactly how your organization

is going to fare in the shifting economy, you can give them your best

ideas about how to go forward. You also should involve them in the

process to keep them engaged. My client, Southwest Airlines, did just

that during one of our previous economic downturns. While other

airlines ditched employees and routes, Southwest asked employees for

their most creative money saving suggestions. Unlike other airlines,

Southwest flew through that particular storm.

While Southwest has struggled more during this particular recession, they

have avoided massive layoffs. I love their new “Get Out There Ads,”

aimed at the business traveler who doesn’t cut back during the recession

but instead, books even more flights to market more aggressively right

now.

3.

Protecting your reputation after a layoff. One way is to treat your

laid-off employees well, as suggested above. They are your best source

for your reputation on the street — for better or worse. Another way is to

honor your “boomerangs” employees who come and go with the firm for

various reasons. Some companies — such as the historically successful

consulting company McKinsey — actually have boomerang clubs and

website so that previous employees can stay in touch with the firm. The

firm knows that people may come back some day with greater experience

and perhaps even more clients.

Another way is to try to avoid layoffs in the first place, asking employees to take

voluntary furloughs — days off without pay, or to suggest other cost saving ideas.

These can help you overcome your employees’ idea that you don’t care.

Copyright © 2009. No part of this material may be reproduced without written permission from Lynne Eisaguirre,

Workplaces That Work, 303-216-1020, Lynne@Workplacesthatwork.com,

www.workplacesthatwork.com