Council Post: Three Pieces Of Advice For Navigating Employee Layoffs

You’ve likely heard that the coronavirus has sent the U.S. unemployment rate to 14.7%, rendering 20.5 million people unemployed as of April, according to the BBC. As a result, the jobless rate now is at its highest since the Great Depression of the 1930s.

When businesses experience periods of uncertainty like today, layoffs may be their only option to stay afloat. However, it’s essential to approach these difficult situations with care, rather than appearing as cold. Uber, for example, fired 3,500 employees over a three-minute Zoom call; Bird, a scooter-sharing startup, terminated the contracts of 406 employees in a callous “Black Mirror” style, according to a Forbes article.

But, while you might still be muscled to make the hard decision to downsize your workforce in an effort to sustain in this demanding climate, there are things you can do to avoid inflicting permanent scars.

Understand your legal obligation before issuing layoffs.

If you’ve eliminated layoff alternatives and decided you will need to let some of your employees go, it’s essential to take steps that best serve the employees who will be affected, as well as protect your company from potential lawsuits. Before having these difficult discussions with your employees, you want to make sure it won’t be considered unlawful termination. Otherwise, you could be doing a disservice to your employees and find yourself in hot water.

So, make sure you play by the rules. It’s also a good idea to educate yourself on job termination laws — such as the federal Worker Adjustment and Retraining Notification Act (or WARN Act) — for your particular circumstances, and study the documentation required to stay in compliance with the law.

Once you’ve covered all the bases, make sure you communicate the news with compassion and empathy.

Coordinate the layoff announcement.

Letting people go isn’t going to be a walk in the park. You might go through a combination of shame, resentment and fear. On top of that, you have to ensure your decision is delivered thoughtfully and respectfully.

First, you want to ensure your line managers are the ones to give the word to their respective teams face to face or via video with kindness and empathy. It’s a much better alternative to merely sending out an email memo to affected employees, for example.

Second, educate team leads on the importance of being prepared for the hard conversions that will inevitably come. Make sure every one of them is equipped with the knowledge on how to cope with employees’ reactions, how to answer hard questions, what the next steps will be, etc.

Lastly, it’s critical to emphasize to employees that the layoff measure was put in motion due to the crisis that’s wreaking havoc within your organization and that it has nothing to do with their performance or other workplace-related factors.

As long as you stay authentic and deliver the information promptly and sincerely, you’ll stand a much better chance of navigating this tense situation.

Help affected employees transition into new roles.

As a company, it’s critical to remember that employees — even the ones you had to let go — remain your top-value asset. That’s why you want to invest your time and energy to soften the impact of the layoffs.

How? Offer help and support to the affected employees, and ensure that the termination won’t short-circuit their careers.

Below are five ideas to thank employees for their service:

• Offer a severance package.

• Provide counseling for the upcoming transition.

• Cover COBRA payments to ensure employees, as well as their family members, remain on the company’s health insurance plan.

• Pen a glowing reference letter.

• Help every employee connect on LinkedIn with the employers that continue with their hiring plans.

Walking the extra mile to support affected staffers’ transitions into new roles will not only help them get back on their feet sooner, but you’ll also avoid causing even more damage to the morale of the remaining employees.