If you had to do layoffs, how would you do it?
During the start of the tech layoffs in 2022 when we saw some terrible examples of companies handling layoffs badly, I asked my team how they would want it to happen to them if it were going to happen.
I meant this as a hypothetical question, curious as to how that process would look if you wanted it as "good" as that process could possibly be but I inadvertently gave them all anxiety thinking that I knew something I didn't. I should have given more context to the question before asking, a thought came to my mind and I asked it without giving it enough thought.
But now I want to ask you the question while hoping it doesn't also give you a dose of anxiety.
So here's the scenario:
Your CEO has called you into a meeting and let you know that the company is making layoffs. This decision cannot be reversed and it was not your decision, the list of people has already been decided.
You have been asked to design the process for letting the affected people know.
Payouts are standard legal requirements but there's no opportunity for you to change or increase those amounts either.
The team is spread across 3 time zones; Sydney, LA and London.
These are some of the considerations you'll need to make:
Process.
What are the sequences of events that need to happen and who is project managing this? Informing people is one thing, what meetings need to happen after that? What documents need to be signed? What triggers pay hitting accounts? Where does everyone that needs to know track this information?
IT access.
Several people on the list have the access to delete code and shut down your company. Most people won't do this when they are informed of a redundancy but some have tried and some may try.
Timing.
With different time zones to deal with, how to you inform your colleagues at the same time and a reasonable time without it turning into a daisy chain of whispers?
Communication.
How are you going to inform everyone, email? Invite to a company wide zoom? What is that invite going to say? What are you going to say publicly about these layoffs and the companies financial position?
Importantly, WHO is communicating this?
Information.
What is the list of information you need to have ready to provide and questions you'll need to answer? What are the payout amounts? What happens with their computers?
Support.
Layoffs are a terrible thing to go through, there's a lot of financial stress and negative effects to people's mental health. What are you going to provide? Do you have outplacement support to help them find their next roles? Will you extend EAP (Employee assistance programs) access? Healthcare?
The "survivors".
While being made laid off is significantly worse than seeing your friends and colleagues laid off, it's still not fun for them to go through. What information and support will be offered to them? How will you give them confidence that more layoffs won't happen to them soon? Can you?
Before you get your notebook out (youths, a notebook is like an ipad but made from paper with pages) let me provide you with a few examples of the mistakes made in the past:
People first hearing about the layoffs via LinkedIn updates
Access to tools cut too early, signally what was to come
Zoom meetings with the CEOs camera off, broadcasting the news like it was a radio show
Severance payments hitting accounts before they were told about the redundancy
There's your homework for today kids, design a process for company layoffs. Maybe some will think this is a sadistic exercise, like planning the funeral of your friends in advance.
But it happens, it's unfortunately become a very normal thing in our lives the past few years and there's not a lot we mere mortals can do that would prevent layoffs ever happening again.
It is impossible to do this exercise and receive A + scores from the affected unless your payouts are insanely generous, so what you're aiming here is a process that is as humane as possible.
Homework on my desk by 9am Monday.
Recruitment Consultant - Business Support Admin, HR, Facilities, Finance, Contact Center, Admin, Sales, GTM, Government
10moAs an employee (not TA), I went through an 80% company layoff once. 100 FTE in office employees down to 20. It was a phone call to go to the MD's office, where you received a thank you and an envelope. Pros: Face-to-face, 1:1, with the MD. It felt respectful, personal, and genuine. The envelope was 2 months salary + accrued leave, etc. There is plenty to get you through the job search in a fairly employable industry. Every day your phone didn't ring, it felt like you had made it through the cut. (No one was expecting 80%). Cons: Watching 80 people walk into the boss's office one at a time over a two-week period was heartbreaking. Not really knowing what was happening, so the uncertainty of when the cut would stop or if you were next was stressful.
Senior Graphic Designer
10moAs soon as someone from upper management, says, "we're like family," start your plan B. Those places don't end well.
LinkedIn Top Voice ✩ Talking Hiring & Talent Trends, Career Transition, Career AI & Future of Work ✩ Director @Outplacement Australia - supporting organisations & their people during workforce change | MAHRI
10mo👉Be sure. Is there anything you can do to avoid it? 👉Be proactive. Get support in place ahead of time. EAP, outplacement. whatever you can afford to help. 👉Be attentive. Little details feel big in emotional times. Make sure everything is correct and seamless. 👉Be kind. Let people get important personal things off their phone. Tell people in person. Don’t frog march people off site. 👉Be human. I know compliance is part of redundancies but you can still be genuine and real amongst the process. #HowYouLetPeopleGoMatters #kindnessinaction
Wordsmith of Fortune 🪖 Content MVP 🏆 Freelance Journalist 📰 SEO-Gold Scribe 🔍 Razor-Sharp Copywriter 🧠
10moAs ugly as they are, being transparent, announcing oncoming lay-offs and offering employees the chance to self-nominate is a path that gives your workforce agency and underpins it as a business decision. The corner people in a meeting room at no notice tactic is really not a tactic and should stop being used.