How to Handle Layoffs Gracefully

I have experienced six downsizing events in my corporate career. NONE went well for the people. ??

Why do layoffs feel so bad? Afterall, it is a business decision, not personal, right?

Our brains take layoffs personally.

??There are 5 triggers of human behavior, represented in our CARES? model. All five are negatively triggered in these situations, creating a negative experience for those who are displaced as well as those who are retained.

Certainty is the ability to predict what will happen next. When employees are surprised by layoff announcements, surprised by who was selected to stay or go and how they were treated, there is no way to reliably predict what will happen next. In an environment of uncertainty, logic and reasoning shuts down while the primitive survival brain takes charge. Retained employees are less productive, paralyzed while the static of uncertainty interrupts their thoughts and actions.

Autonomy is a sense that our own behavior will impact outcomes. The typical approach to layoffs leave little to no control or choices for employees. The decision is non-negotiable. Past performance and effort are usually irrelevant. Most employees are required to sign an exit agreement in order to receive severance benefits, even though they have a right to many of these by law (depending on the circumstance). Lack of control often sparks fight or flight reactions and has been a force in The Great Resignation and Quiet Quitting.

Relationship is a sense of belonging and feeling safe with others. With good intentions, leaders often talk about employees as "family" and critical to the business. Layoffs are incongruent with that message. Mass emails or messages instantly degrades the relationships by signaling "you are not worthy of our time and effort". It breaks trust and severs emotional ties to the leader as well as the company for those displaced and those who are retained.

Lack of empathy and support for employees breed contempt, resulting in disengagement, voluntary turnover, and lower Glassdoor ratings.

Equality is the perception of equitable treatment and fair decision making. Lack of transparency leaves each individual to interpret their own facts. If the outcome does not favor them, they will naturally default to a verdict of unfair treatment - unfair selection, unfair notice, unfair severance package, unfair timing, unfair outplacement.... the list is endless during layoffs.

Standing is the perception of feeling valued and appreciated, both one-on-one and within an organization. Employees that are displaced instantly feel devalued; layoff = we don't want you.

Employees who are retained are expected to feel valued by default. However, if the company didn't value the displaced colleagues it is challenging to believe they are as well. In addition, extra work is often transferred to remaining employees' workload. This translates to retention = we don't care if this is hard on you.

How to Reduce the Negative Impact of Layoffs

1. Ideally - avoid a layoff with talent optimization today.

Implement a talent optimization strategy to improve business results now. Companies that practice talent optimization outpace their competitors by double digits, experience greater teamwork and innovation, have better cultures, and reduce voluntary turnover. Higher productivity and greater efficiencies reduce the potential need for layoffs.

Companies that practice talent optimization outpace competitors by double digits

It starts with aligning the people strategy with the business strategy, beyond org charts and job descriptions. The horsepower of every individual is maximized to achieve specific goals. When done correctly, this can be done for each team in less than one hour!

The second imperative is to hire the right person for the role, ensuring job fit.

A 2022 talent optimization benchmarking report and LinkedIn leadership poll reported that a significant number of employees hired in the past year were considered "bad hires".

They are not bad people, just not a good fit for the job.

This is a significant expense that is largely preventable by using behavioral neuroscience plus people data along with precision interviews. When done correctly, an entire organization can hire effectively for all roles for the cost to replace just one employee!

Talent optimization, by design, has a positive effect on the CARES triggers resulting in happier, more productive employees that stay.

2. Before an inevitable layoff, mitigate fallout with talent optimization and offset the CARES triggers.

If your company is considering a layoff, that means your business priorities will shift. That means adjusting your talent strategy accordingly before you make reduction decisions.

Taking this critical step can further inform your personnel decisions before finalizing the headcount. Too many companies recognize the consequences of NOT doing this and have to scramble to compensate or, embarrassingly, invite personnel to rejoin the company.

In addition, create a transition plan for both displaced and retained employees that address the CARES triggers.

With the talent strategy in place, remaining employees clearly understand how they fit into the business strategy, their role, and how they will contribute. This provides a great deal of certainty and establishes their standing (feeling valued). It also reestablishes relationships within new working groups.

Naturally, there is a need to be discreet during the planning phase, yet be able to communicate and implement the changes swiftly and smoothly. Extended wait periods after announcements is excruciating because it amplifies the CARES triggers, especially uncertainty.

A platform such as Goalster can preload your thoughtful plan and then deploy action items to the right people at the right time exquisitely.

3. Accelerate productivity after a layoff with talent optimization

It may seem counterintuitive to adopt a talent optimization strategy when reorganization already incurs additional time and expense. But what is the cost of NOT doing it?

By following the steps above, you can have greater certainty your business will achieve its goals and accelerate the speed to full productivity. Every employee must count or risk more layoffs ahead. With the right talent in the right role, you'll be able to drive growth, innovation, and success.

If you're looking to create a talent optimization strategy for your business, we can help. Contact us today at?[email protected] ?or visit?retainmyteam.com ?to learn more.

Ronda Robinson is a talent strategist and the founder of?Retain My Team? .?As a Certified Professional in Talent Development? (CPTD) and Master Performance Consultant she has been applying behavioral neuroscience to workplace solutions for over 20 years. She is a keynote speaker and author. She has been featured on NBC, CBS, Fox News, USA Today, Global Woman Magazine, London Business Magazine, and The Business Woman Today magazine.