Some thoughts on recent layoffs and downsizing

With the economic downturn we have been experiencing in the last 6 months, a number of companies have implemented business changes to reduce their cost structure and improve operational performance. Some companies with more significant challenges, especially those in the tech sector, have been implementing layoffs to get back on more solid financial footing. I may be dating myself here, but for those of us who have been around for a while, entering the workforce in the 1980’s and 90’s, we were conditioned to accept (believe?) layoffs as inevitable and sometimes necessary. I’m not quite sure if later entrants to the workforce have the same view, based on recent commentary in both the traditional media and social media platforms. I get the sense that many in the US and Canada were caught off-guard by these layoffs, and moreover, some are questioning whether layoffs are in fact necessary. This is a healthy debate to be having now, and into the future.?

While employees in European states are afforded more protection from layoffs given their regulations, we continue to see well-funded, stable companies in the US and Canada triggering layoffs, eg., Indeed, META, Amazon, FreshBooks, Spotify, and others. (See these recent reports from reputable sources on the status of layoffs:?https://www.cnbc.com/2023/04/06/layoffs-are-up-nearly-fivefold-so-far-this-year-with-tech-companies-leading-the-way.html;?https://dailyhive.com/vancouver/absolute-software-vancouver-tech-company-job-layoffs;?https://techcrunch.com/2023/04/03/tech-industry-layoffs/)

If the economy continues to contract in the coming months, we may see more restructuring and layoffs. In the hopes of trying to minimize the impact to people, businesses, and communities, I’d like to offer some guidance to company executives and HR Teams that may be considering layoffs or downsizing. Let me start by saying that I consider layoffs as being the least desirable of all options to reduce expenditures and lower a firm’s cost structure. The human toll of layoffs is significant for those who are let go, impacts can often last months, and sometimes years. Aside from the economic insecurity and initial shock of sudden job loss, laid off employees often experience humiliation, anger, embarrassment, and loss of confidence. Those employees that remain with the company following a layoff, may feel vulnerable that more cuts are coming as well as experiencing survivor guilt after seeing their colleagues being forced out of the company. Companies may have the residue of morale problems for some time following layoffs, likely impacting near-term and future performance.?

If your company is researching expenditure reduction options, including layoffs or downsizing your teams, consider the following points:

• Quantify the degree of savings or reductions that are required as absolutely necessary. With this target in mind, begin to socialize options with key leaders, managers, and HR.
• If you are narrowing your options to a possible layoff, get your HR Leader and People+Culture Team onboard early during company deliberations about triggering layoffs. Why is this important? Your HR Team is likely best situated to understand the vibe and emotional tenor of the company before, during, and after the layoff. This kind of information is key to formulating your communications and planning.?
• With HR undertaking the appropriate analysis and research, can your company consider???interim workforce adjustment options that can be a bridge to better financial performance???For example, can voluntary exit packages be tabled as a first step? Can you offer your people the option of unpaid leaves with access to company benefits during the leave? How about work sharing arrangements, so that employees can work part-time hours while drawing on employment insurance?
• With your leaders and HR, walk through scenarios of how employees might react to the news of layoffs, including Managers that will be communicating directly with impacted people. Based on this analysis, prepare key messages and communication to effectively respond to employee concerns. Managers should be provided assurances that the company is doing the right thing, and that impacted employees are being dealt with fairly, based on comparator situations.?
• Research and design specific transition supports for people impacted by layoffs and make these available immediately after notice of layoff. Develop a detailed roll-out plan with periodic check-ins to monitor the progress of supports to impacted people, including access to company benefits, severance payments, and career transition coaching.??

For companies that are thinking about layoffs, have a deeper conversation with your operations and corporate leaders to see what other expenditure management options may be available. If your company does not have the bandwidth or experience within your HR Team to implement layoffs with care, diligence, and planning, you are strongly encouraged to reach out to experienced HR Practitioners to begin the conversation. With layoffs, once you have decided to go down this path, know that there will be significant impacts to your culture, morale, people engagement, and over time, retention. All these byproducts of layoffs can however be partially mitigated by taking a principled approach, one that emphases fairness in due process, respect and dignity.

There is another side to layoffs, possibly even a bright light for some, so I offer this as a way to help reframe the loss of a job as a possible opportunity. Speaking from my own personal experience, having been laid off much earlier in my career, after the initial shock, I was able to pivot to another role and career path. Others in my professional circle have had similar experiences and successful transitions, and I would encourage companies to offer as much support as possible to help impacted employees move forward to pursue new opportunities. On that note, a shoutout to Patrick Mork , for bringing a global group of coaches together to offer pro bono coaching support to laid off workers. I’d encourage a similar initiative in your virtual community or local community.

If you’d like to??learn more about how to plan for these exceptional events, or better yet, to avoid these, please reach out to us at RE:FOCUS HR Solutions Inc. . Building and sustaining a progressive workplace culture and employee experience is fundamentally about the care and consideration you have taken when confronted or facing difficult challenges.?

Written by Tony Scida, CPO & Co-founder of RE:FOCUS HR Solutions Inc., Wednesday, April 12, 2023

#timeforchange #coaching #careerchange #careercoaching #laidoff??#techworkers #givetoget #downsizing #humancapital #humanleadership #humancentereddesign #peopleexperience #peoplefirst