By Annie Oxenfeld and Sheri Lautenbach
Economic downturns often go hand-in-hand with workforce reductions
And while larger businesses may have the ability to look ahead and craft a comprehensive support plan for employees before taking action, smaller business may have to make sudden reductions with little time to prepare.
When this happens, your remaining employees are left reeling from the news, and in the flurry and anxiety of the moment, it’s easy to overlook the needs of the people left behind. This oversight damages trust and leaves huge, unresolved roadblocks to teamwork and productivity in place.
Instead, make sure you have a solid change management plan in place to care for your people and mitigate the negative impact on your business as a whole.
Here are the essentials to guiding your team through the unique crisis of a workforce reduction.
Understand the Ripple Effect of Workforce Reductions
When layoffs happen, downsized employees are not only left without a job, they’re also left sad, angry, and confused no matter how gently the news was delivered.
However, while your other employees are relieved be employed, they’ve also been impacted by the reduction and are also feeling a mix of conflicting emotions:
“Survivor’s Guilt” – Employees fortunate enough to survive a round of layoffs are sometimes left with a feeling of guilt. They will question why they weren’t let go themselves. They may also feel guilty about their relief that they were spared at the expense of a colleague.
Grief – In addition to guilt, there’s bound to be a sense of grief among remaining team members. First of all, it’s sad that their coworkers now have to find new jobs, but also, the fabric of their team is now different. They grieve for their friends’ misfortune while also grieving the loss of daily interactions with familiar, beloved colleagues.
Fear – Perhaps most disruptive to your company as a whole, your remaining team will be fearful of what these layoffs mean for their futures and the stability of the company. They fear their own jobs are at risk. They also worry that the cutbacks will mean an increased workload for them and impact their professional and personal lives.
In any size company, these concerns are a disruptive at best. However, small to mid-sized companies are especially susceptible since the environment is more likely to have become close-knit. Small teams tend to forge close relationships with long-time colleagues, which only magnifies the emotional impact of the layoffs.
Prepare a change management plan to help ease the transition
Making sure your company is prepared with a change management plan ensures both downsized employees and your remaining team are supported throughout the process. Here’s a quick breakdown of what a successful change management plan should include.
#1 Communication Plan
We all know communication is the most crucial component of successful change management, but it’s surprising how often it’s either overlooked or simply not emphasized enough.
Employees need both immediate information and open, ongoing communication when experiencing a major transition.
- Immediate Communication to remaining staff should address the reduction and why it was necessary, and it should be provided as soon as possible. Be open and honest. If you’ve completed a round of layoffs and don’t have plans for more, reassure employees that the company has no further plans for layoffs at this time, but stop short of promising job security. Acknowledging forces outside your control – such as the economy or a pending funding source – will go a long way in employees trusting your messages. This can happen in the form of a town hall style meeting, smaller group meeting, an email from the CEO or Director, or a combination of these formats. Whichever method you choose, your team should not be left feeling in the dark about what to expect in the immediate future.
- Ongoing Communication is just as important. Your team is still processing the change and may not have absorbed the information provided. They need to hear it again before it sinks in. It’s also crucial to reassure them that their laid-off colleagues are being taken care of via support services and severance packages. Knowing that their friends aren’t out in the cold helps stave off negative or distrustful feelings. Additionally, your remaining team needs clear communication moving forwards about how their roles will change, if at all. Also, allow for two-way communication and provide opportunities for employees to ask any questions that may be on their minds. Whether it be smaller team meetings or one-on-one check-ins, management should be proactive in creating opportunities to answer questions and offer support.
#2 Work to Rebuild Your Team’s Confidence
Despite your best efforts, morale is likely to be low after layoffs, and it’s up to management to rebuild any confidence that’s been lost.
- Be transparent – Being honest with your team shows they can trust you, even if the future is uncertain. That being said, don’t over-promise in an attempt to win them over. Communicating the steps you’re taking to avoid further reductions is great, but don’t promise there won’t be more.
- Monitor morale – It’s more important than ever to be mindful of how your team may be feeling. It’s also up to you to take actions to keep up team spirit. Find ways to express your gratitude for their work.
- Refocus on the positive – Keep your team looking forward and not backwards. Adjust the focus towards a positive vision and direction.
- Encourage team building – Leave room for and even organize opportunities for your team to gather and socialize. It’s important to rebuild a sense of collaboration and teamwork.
- Celebrate successes – Acknowledging and celebrating even small wins goes a long way towards reestablishing trust and camaraderie.
#3 Craft a Strong Exit Package
For both employees selected for a RIF, providing strong support and resources during a workforce reduction demonstrates helps impacted employees through a difficult time, and reassures remaining employees that the company cares about people.
- Offer resources for transition counseling or assistance with résumé writing and job hunting.
- Provide letters of recommendation. This not only helps your team find new employment, but also shows that you respect and care for them.
- Offer mental health resources. This is absolutely important for both former and current employees as they navigate the challenge of such a major transition.
- Offer severance packages, if possible. Severance packages can include severance pay, as well as financial assistance towards COBRA or other medical coverage after their benefits end. They can make a huge impact on exiting employees’ transition.
#4 Other Important Things that Are Often Overlooked!
- Don’t let people go either late in the day or late in the week. Instead, letting people go early in the day or week allows employees to immediately take their next steps forward, like filing for unemployment or submitting job applications. Otherwise, they’re left at a time of day or of the week where there’s not much they can do but sit in the negative emotions they’re experiencing. Also, word travels fast. Taking action earlier in the workday or week enables you to communicate quickly and directly with your staff, reducing the risk of unanswered questions or insecurity taking root in your team. The last thing you want is for an employee to hear about a layoff on Friday afternoon from an impacted colleague, and have to wonder over the weekend if they’re going to be laid off next.
- Don’t overlook mental health. This goes for you, your former employees, and current employees. Be sure to have a list of services to provide. If your company has an Employee Assistance Program (EAP), consider having them come out for on-site support. Circulate their marketing materials and contact info frequently. And don’t forget to take care of yourself – layoffs can be one of the most difficult things to communicate as a manager or business leader.
- Acknowledge that it’s tough to transition after losing colleagues. Encourage your team to practice self-care and take any necessary PTO.
Xenium’s Complete HR + Payroll service has the know-how and experience to help small to mid-sized businesses craft and implement a change management plan.
- We assist in risk management assessments, employee selection and planning.
- We help you draft separation agreements and advise on appropriate severance packages.
- We provide critical resources to your team like guidance on applying for unemployment.
- We help you craft scripts your leaders can use to ensure consistent, compassionate communication when sharing the news, and we even sit in on the meetings with you.
In short, we provide boots on the ground expertise to help your company navigate the difficult journey of a workplace reduction.
Xenium’s team partners with yours to develop an effective strategy, master the human touch, and pull everything together into a positive workplace culture that continues to generate productivity and growth for your business in the wake of layoffs.
Schedule a call here to learn how Xenium’s Complete HR + Payroll service transforms the human resources experience for both you and the people under your care.