How to conduct a Heartfelt Layoff - Part 1

How do you lay people off with heart?

By Deb Boelkes

Follow the Golden Rule. The best approach is always “Do unto others as you would have them do unto you.”  The Golden Rule is a guiding principle that leaders should live by every day, but it’s never more important than when employees are at their most vulnerable. Imagine how you would want to be treated if you were to lose your job and take action with that in mind.

Face Reality. Certainly few of us want to be laid off, but as Jack Welch, former CEO and Chairman of General Electric once said, the best leaders “face reality as it is, not as it was or as you wish it to be.”

If lay-offs in your company are not immediately imminent, but could be a possibility in the days or weeks ahead, don’t ignore the facts and don’t keep it secret. It’s far better that team members be forewarned so they can mentally prepare, determine their options, and make plans.

Communicate personally– in a calm and caring manner.  The owner / CEO should let team members know what they know as early as practical before any layoffs take place. Be honest, candid and empathetic when communicating. Forewarnings should be handled face-to-face. This can be done as a web-based town hall if in-person one-on-one meetings, by Skype or other means, are not practical.

Solicit input. Let employees know, in no uncertain terms, you are all in this together. Proactively seek their ideas for minimizing the extent of a future layoff. You never know what terrific ideas team members may have. Brainstorming with team members could make all the difference for your firm’s survival. Their ideas could take you in an entirely new direction or potentially set your business up for greater success in the near term or long run.    

Lead from the front. Let employees know what, if any, cost reduction actions may be planned to stem the tide and mitigate layoffs. The CEO and other highly compensated leaders should be the first to take pay cuts. Percentages of pay to be cut should be proportionate to job pay scale (i.e. the more highly compensated the individual, the greater the percentage of pay cut).

Keep communication lines open. Provide ongoing updates to employees and keep everyone in the loop when answering such questions from team members.

Be compassionate. In the words of author Maya Angelou, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

If you are kind and compassionate during a layoff, these soon-to-be former employees will be far more likely to speak highly of you and your brand going forward. They will be more likely to refer your brand to others in the future. When the economy turns around, and it will, the very best people you may have to lay off today will be much more willing to come back to work for you when things pick up. If they do come back, they will be more likely to work even harder to become even better performers than before. They will be more dedicated.

Strive to maintain a good relationship. From a personal perspective, as a manager, you will feel much better about sending people off with hope and guidance. You could even form a stronger bond than you had before.

When the economy turns around, you will want your best team members to be eager to work with you in the future, either as employees, or as suppliers, as customers, as consultants, or even as a potential buyer for your company. You never know, you might even end up working for them in the future.

Make your parting gesture loving and hopeful. If you do it right, the employee might return someday to say “Thank you. I know what you had to do was as difficult for you to deliver as it was for me to hear, but I’ll always be grateful to you for the hope you gave me. I will never forget you.” 

There’s no escaping the discomfort and pain caused by layoffs, but these steps can keep the suffering to a minimum. You have the responsibility to send an employee off into the job market hopeful and inspired, not angry or hurt. If you’ve done your job right and acted from a place of love, they’ll leave knowing that the best part of their life is still ahead.