I don't know of anyone who likes layoffs. However, they are one tool in your management toolbox. But so many layoffs don't return the results the managers expect. Worse, the layoffs alienate the previous employees and the survivors. And the customers? If your customers can tell you laid people off, you won't get the business results you want.
You can conduct a reasonable layoff and have that layoff make sense for everyone concerned. However, layoffs mean you must consider the business context and the people involved. That includes you and how you feel.
Here are the ideas I wrote about in this series, collected into business and people decisions.
The Layoff Business Decisions (Context)
My recommendations for the business decisions from Have to Lay People Off? Practice Congruence and Choose What Not to Do, Part 1:
- Decide what not to do. You can't “do more with less.” In addition, since you won't have the team members (or teams) you had before, choose which work you will no longer fund. Make those decisions as quickly as possible. I think of this as ripping the bandaid off fast. It hurts momentarily, but you can achieve the desired outcomes faster.
- Avoid laying off a percentage across the board. Remember that as you choose the new project portfolio, managers continue to commit coherent work to teams.
- Make sure all the managers “suffer” a little, too. Reduce their bonuses and address any incongruent salaries. It looks incongruent when managers appear to benefit and the “normal” employees suffer.
Once you know what not to do, you can make the various people decisions.
The Human Decisions (Self and Other)
Remember that layoffs are about human beings, people. As a manager, you have responsibilities to the people you're laying off, and to the survivors, the people who remain. See How to Approach the Layoff Conversation with Respect and Congruence, Part 2. Also see Acknowledge Everyone’s Emotions for a Congruent Layoff Conversation, Part 3.
For yourself: you are human. Acknowledge your emotions, so you can be congruent and treat people with kindness and respect.
For the people you need to lay off:
- Create a script for yourself, preferably with HR, so you know what you legally can and cannot say. Because each state and country has its own laws, you might start with the ideas in Part 2, but don't stop there. Always check with a lawyer. Always.
- Decide if you will offer recommendations, references, or even introductions to other hiring managers. This is a great time to use your network—if that fits for you.
- Choose a layoff time and location that makes sense. Talk to each person separately. And, if you can, choose a mid-week time, so the laid-off and the survivors can process the layoffs and choose what to do next.
Remember the survivors, the people who remain. These people have plenty of feelings—about the organization, their previous colleagues, and you. Invite them into conversations, and focus those conversations on the work and the work environment. If you think someone is having a particularly difficult time, support them in how they can use the employee assistance program to get more help.
You will learn if the layoff was worth it when you monitor customer actions.
How Your Decisions Affect Customers (Post-Layoff Context)
Your organization is in business to acquire and retain customers because that's how you make money. Remember, your customers' reactions will drive your decisions. That's why I recommend you:
- Make decisions as quickly as possible. If you have a financial reason to lay people off, decide as early as you can to have the layoff and which work not to do.
- Determine the “right” number of people to lay off, so you can still staff the work you know you need to finish.
- Be ready to replan as you see who stays, even after the layoff.
Monitor your revenue numbers all the time. What numbers would make you rethink anything about this?
One more thing: while your stock price might go up if you lay people off, fewer people often means less revenue. No one ever grew a company by laying people off. Instead, the people who remain need to somehow offer customers value for their money. That will retain customers and possibly increase sales.
Manage with Congruence and Kindness
As you find your way through these layoff actions, remember your congruence: balance the self, other, and context. And remember to be kind to people.
You—and they—are probably having the worst day(s) of your professional lives. The kinder you are, without placating, to everyone involved, the more people will remember you with respect and possibly fondness.
I hope these tips help you. Let me know.
The entire series:
- Have to Lay People Off? Practice Congruence and First Choose What Not to Do, Part 1
- How to Approach the Layoff Conversation with Respect and Congruence, Part 2
- Acknowledge Everyone's Emotions for a Congruent Layoff Conversation, Part 3
- Lay People Off with Congruence to Make Better Business Decisions, Part 4, Summary