#4 - Empathic Layoffs: A Quick Guide to Firing with Care

As the country manager of a rapidly growing company, you had always prided yourself on building a strong, dedicated team. But as you sat across from a key prospect client at lunchtime, your watch vibrated with an e-mail from headquarters. The subject line sent a chill down your spine: "Confidential".

You excused yourself to the washroom to check the e-mail on your phone, and as you walked there, your mind raced about the recent layoffs across your industry, and a phrase came to your mind: "BRACE FOR IMPACT!". You sit on the toilet where you open the e-mail to find that your worst nightmares have come true: You have just been asked to lay off 10% of your team.

You quickly called HR and your team of lawyers, ensuring that all legal aspects were covered and a list of employees was compiled based on performance and culture alignment. But as you lay in bed that night, unable to sleep, you couldn't shake the thought of letting go of promising, young talent Vs. loyal, yet average performing, employees with families to support.

The day of the layoffs arrived. Your hands are sweaty, and your heart is pounding through your chest. Is there a particular way you deliver the news? Who should be there with you? And how do you address the rest of the team? These are just a few questions that weigh heavily on your mind as you prepare to make one of your most challenging career decisions.

"Having personally had to navigate the difficult process of terminating a friend, I can attest to this firsthand. And, as a victim of layoffs myself during the 2008 financial crisis, I understand the gravity of the situation from both sides."

The trend of layoffs in the tech industry continues, with Spotify being the latest company to join the ranks. The music streaming giant announced plans to reduce its global workforce by 6%, mirroring similar moves by industry leaders such as Alphabet Inc. , which is cutting 12,000 jobs, 微软 , set to lay off a significant portion of its workforce, and Meta , which has confirmed a massive round of layoffs, accounting for a staggering 13% of their employees. This recent wave of downsizing has brought the topic of layoffs to the forefront of my thoughts, prompting me to address it in this article.

As a seasoned executive with a deep understanding of the importance of company culture and employee relations, I am all too familiar with the nuanced and emotionally charged task of terminating an employee. Though it is never a decision that is taken lightly, it is an unfortunate reality that must be faced in the course of doing business. Having personally had to navigate the difficult process of terminating a friend, I can attest to this firsthand. And, as a victim of layoffs myself during the 2008 financial crisis, I understand the gravity of the situation from both sides. However, despite its challenges, there are ways to mitigate the negative impact on both the employee and the company. The key, I have found, is in effective communication - it is not about the money or other conditions, but rather how we approach and handle the situation with empathy and understanding.

In this piece, we will delve into the nuanced and complex process of effectively terminating an employee. We will examine the underlying reasons for the decision, the importance of thorough preparation, and the crucial role of clear, direct, and empathetic communication. Drawing on my own experiences, as well as insights from esteemed industry leaders, this article will provide a comprehensive guide for handling this difficult but necessary aspect of the business. This is not science proofed and it's based mainly on my opinion and what's been working for me so far. So, whether you're a seasoned executive or a new manager facing this challenge for the first time, I invite you to explore these strategies and consider how they may apply to your unique situation. And as always, I am available for further discussion and consultation on this important topic.

"When the time comes to deliver difficult news, it is important to be direct and avoid prolonging the conversation."

1 - The Reasons

The reasons for termination are important as they determine the appropriate course of action to take.

I like to divide them into two categories: Individual and Systemic.

1. Individual reasons include performance and productivity issues, absenteeism, violations of procedures, misconduct, harassment, theft, incompetence in the role, conflicts with colleagues or supervisors, or other moral and ethical violations. These reasons are within the control of the employee and can often be addressed through performance management, mentoring, training or coaching.
2. Systemic reasons, on the other hand, are typically outside of the employee's control. Examples include restructuring, downsizing, mergers and acquisitions, changes in strategy, or closure. In these cases, there may be little that can be done to avoid termination.

The key difference between the two groups in terms of communication is that individual reasons can often be anticipated and addressed, while systemic reasons may be unavoidable. Individual reasons for termination are easier to anticipate and correct because they can often be identified through observable behaviours, lack of results, and actions that deviate from company expectations. It is important to address these issues promptly and provide clear feedback on what is acceptable and what is not.

One effective approach is to align performance evaluations with a set of clearly defined company principles. This allows for constructive and objective discussions about performance and conduct, rather than placing blame on the individual. When addressing performance issues, it is important to provide mentoring, coaching, training, or other support to help the employee align their behaviour with company principles.

To ensure that all employees have a clear understanding of these principles, they should be widely communicated and regularly reinforced. During performance evaluations or corrective action meetings, do the following:

• Reference the specific principles that were violated and provide concrete examples of how the employee's behaviour deviated from it.
• Emphasize that the company's principles are non-negotiable, but express your belief in the employee's ability to improve and align with them.
• End the conversation by asking for the employee's commitment to aligning their behaviour with the company's principles. If they are unable to make this commitment, it may be necessary to proceed with termination.

2 - Prepare, Prepare, Prepare

As Benjamin Franklin famously stated, "By failing to prepare, you are preparing to fail." This wise adage holds true in all aspects of life, including the difficult task of terminating an employee.

Effective preparation is essential for a successful outcome. This includes rehearsing the conversation, outlining key talking points, and gathering all necessary documentation, such as performance evaluations and disciplinary records. It is important to note, however, that this is for your preparation and not to use as justification until strictly needed - more on this ahead.

Consultation with Human Resources is a vital step in the process. An HR representative can offer valuable insight into the employee's extenuating circumstances and advise on any potential legal issues. They should also be responsible for preparing the termination letter, outlining the severance and unemployment process, and creating a detailed plan for the next steps, including the process of leaving the building - when there's one - returning company-owned items, and the eventual duration of benefits.

When scheduling the conversation, it is important to consider the timing. I recommend scheduling it earlier in the week, avoiding Thursdays and Fridays at all costs, and pick a time that works for everyone. My personal favorite? Early morning or lunchtime. Just imagine the looks on my team's faces when I call them for a meeting at those times from now on! ??

3 - Straight to The Point

"It is important to remember that any delay or sugarcoating of the message will only prolong the inevitable and can be more detrimental to the person receiving the news"

As challenging as it may seem, it is always best to deliver bad news promptly and directly. Consider this question: would you prefer to receive bad news after a prolonged and ambiguous conversation, or have it communicated clearly and concisely?

When the time comes to deliver difficult news, it is important to be direct and avoid prolonging the conversation. Attempts to cushion the impact of bad news or make the situation more comfortable for the other person are ultimately self-serving. This is because you are trying to alleviate your own discomfort in witnessing the other person's pain rather than really handling the gravity of the situation at hand. It is important to remember that any delay or sugarcoating of the message will only prolong the inevitable and can be more detrimental to the person receiving the news, ultimately, hindering effective communication and decision-making.

To be direct, clear and swift, after everyone is seated, try something like: "Greetings, [Employee Name]. Thank you for taking the time to meet with us today. The purpose of this meeting is to formally inform you that, after careful consideration, the company has made the decision to end our employment relationship."

Now, this is where you will feel the urge to do one of two things, or maybe both:

1. Justify the decision;
2. Try to comfort the person.

Both are wrong! Yep, contrary to what your intuition might be telling you, it is important to recognize that these actions can actually be detrimental to the conversation and the relationship. Justifying the decision may open the door to disagreement and argument, which is unnecessary and unproductive. The decision has been made and it is important to move forward. Attempting to comfort the person may come across as condescending and can further fuel the person's negative emotions.

In the process of terminating an employee, it is crucial to recognize the emotional weight that the individual may be carrying. As the carrier of this news, it is essential to approach the situation with empathy and compassion. This entails showing respect for their emotions and allowing them to process their feelings without attempting to alter or manage them through justification or attempts at comfort, which may ultimately prove to be self-serving.

Now, I can hear your voice yelling: "Yeah Duarte... But what do I do then?"

Well... keep reading!

4 - Keep Your Mouth Shut

When delivering difficult news, one of the most important things to do is to keep your mouth shut. The importance of keeping quiet cannot be overstated and goes beyond just not speaking. This may seem counterintuitive, but it is crucial for a number of reasons.

1. First, by focusing on keeping your mouth shut, you will avoid saying anything that could potentially compromise the communication. It is important to remember that your intuition may be trying to sabotage you at this moment, so focusing on keeping quiet can help prevent this.
2. Second, the person needs a moment to process the information and to feel whatever they need to feel. They may have negative feelings towards you, and that is perfectly normal and acceptable. This is a difficult thing to hear and it is natural to have emotional reactions to it.

It is important to allow the person to react and respond to their reactions with empathy and compassion. This means acknowledging and validating their feelings, even if you do not agree with them. It is important to put yourself in their shoes and to understand their perspective.

Examples of things you can say to show empathy include:

• "You have all the right to feel that way. This is a very hard moment, and no one should ever have to face something like this";
• "I can't imagine what it is like to be in your position, and you have all the right to feel how you feel";
• "I see that the reasons are important to you. I understand that our reasons are different and the decision has been made, and your point of view is also 100% valid."

It's also crucial to understand that when an individual is being let go, it's natural for them to want to understand the reasons behind the decision and sometimes they may even insist. They may feel that understanding the reasons will bring them closure and peace. Instead, you can acknowledge the individual's desire to understand and validate their feelings. For example, you can say something like:

• "I understand that you want to comprehend the reasons behind this decision. It's completely normal to want to comprehend why this is happening. Our decision was based on various factors and was made after careful consideration. While our perspectives may differ from yours, it's important to respect that the decision has been made and it's time to move forward."

Still, the individual may keep insisting, however, it's important to avoid getting into a debate about it. Providing reasons for the decision may lead to disagreement and leave a negative impression.

If you can't seem to make them focus on what's important now, as a last resort, you can provide a list of reasons for the decision, but make it clear that discussion or debate will not be productive. Before reading the reasons, you can say:

• "These are some of the reasons our decision was based on. It's understandable that you may have a different perspective, and the decision has been made. We will not be discussing it further. However, we want to explain the next steps to you."

Then, present the reasons in a clear and concise manner, and if the person tries to argue, remind them that the decision is final and redirect the conversation to the next steps.

5 - Ending the Meeting

"a prompt departure for the terminated individual is the best course of action."

As the person begins to process the news and starts to focus on solutions, it's important to discuss the next steps and provide clear information on the process of leaving, including any legal and bureaucratic papers that need to be filled out. This can include discussing the details of their severance and unemployment plan, as well as the return of company-owned items and any other necessary details.

It's also important to ensure that the employee is aware of any benefits or resources that may be available to them, such as outplacement services or career counselling, whenever possible. This can help them to feel supported and equipped to move forward in their career.

From my standpoint, a prompt departure for the terminated individual is the best course of action. Lingering on-site can be difficult for both the individual and the organization. The individual may be subject to increased scrutiny and gossip, which can negatively impact their morale. Additionally, this can create a disruptive atmosphere in the workplace, hindering the organization's ability to move forward. To minimize disruption, remaining responsibilities should be delegated to existing staff members.

6 - Informing the Team

When it comes to informing the team about a termination, it's important to handle the situation with care and sensitivity. It's natural for team members to have questions and concerns, so it's important to be transparent and clear in your communication. It's also a good idea to make sure that everyone understands how the decision was made and how it will impact the team and the company.

One way to approach this is to gather the team together for a meeting and explain the situation in a calm and collected manner. It's also important to emphasize that the decision was not made lightly and that the company is committed to supporting the remaining team members as they adjust to the change.

It's also important to remember that the team may have mixed emotions about the situation, and it's important to be understanding and respectful of everyone's feelings. You can also provide resources and support for team members who may be struggling with the news.

Overall, when it comes to informing the team about a termination, it's important to approach the situation with empathy and compassion, while also being transparent and clear in your communication. This will help ensure that the team is able to move forward and continue to work effectively together.

7 - The Exit Interview

"The departing employee should also be given the opportunity to provide feedback on their experience with the organization, including any suggestions for improvement."

The conduct of an exit interview, in my experience, serves as a crucial component in the process of an employee's departure from an organization. It is advisable to schedule the interview approximately one-month after separation, in order to allow for an objective and sincere assessment of the individual's tenure, while also allowing sufficient time for any residual emotions to dissipate.

One key aspect of an exit interview is providing feedback on what the company believes the person could have improved upon during their time at the company. This feedback can be valuable for the employee as they move on to their next opportunity, and it can also help the company identify areas of improvement in their hiring and onboarding processes.

It is important to approach this feedback in a constructive and professional manner. Share specific examples of where the employee could have improved and explain how this would have benefited the company. It's also important to remember that it's not a personal attack, it's a professional evaluation.

In conducting exit interviews, it is essential to remember that the conversation is not a one-way street. The departing employee should also be given the opportunity to provide feedback on their experience with the organization, including any suggestions for improvement. It is crucial for the company to approach this feedback with empathy, actively listening and considering the employee's perspective, regardless of whether or not the organization agrees with the observations or suggestions. This approach can lead to valuable insights and improvements that can help the organization to continue to grow and evolve.

Overall, an exit interview is an important step in the process of an employee leaving a company, and it can be valuable in providing feedback, learning from the employee's experience and improving the company.

It's also essential to keep in mind that the person you are firing was once an employee that you hired, and it's important to treat them with respect and dignity throughout the process. This will not only help to minimize any potential legal issues, but it will also help to maintain a positive reputation for your company.

Final Thoughts

"the decision to terminate an employee is not about the individual being let go, but primarily about the company's future"

In conclusion, terminating an employee is a delicate task that requires a thoughtful approach. It is essential to approach the conversation with empathy, clarity, and directness, while also providing support and guidance during the transition.

It's critical to avoid the temptation to let one's ego play a role in the conversation. It is essential to acknowledge and validate the individual's feelings, even if one does not agree with their perspective. This is not the time to engage in arguments over differing viewpoints, which should have been addressed prior to the decision to terminate.

As a final consideration, as hard as it may sound, termination is a manifestation of the company's vision, not a criticism of the individual's character. The decision should be based on the company's goals, values, and overall well-being, with the ultimate goal of ensuring the long-term success and sustainability of the organization for the benefit of its clients, shareholders, the economy and particularly its employees.

Thank you for reading this edition of "Thoughts of a Simple Man". If you enjoyed it, please consider subscribing, commenting and sharing with whoever needs to read it. I always appreciate feedback and ideas for future topics. If you have any thoughts or just want to say "Hi", please do so. I welcome the opportunity to engage in meaningful dialogue and discussion.