What should business leaders do in the aftermath of company layoffs?

If I were to take a wild guess, many of you reading this article have been on both sides of this issue. I certainly have, with the matching t-shirt and hat to go with it! I've been in the position of delivering often times very tough news to an employee or employees. Furthermore, I've been on the receiving end in my career of that same tough news of having to vacant a company and role that I loved as a result of layoffs. Neither position gives you the warm and fuzzies right? I recall the last layoff I experienced!

C-Suite executive over retail at a local financial institution. Early January, coming off a historically profitable year for the organization. I'm called into the CEO's office at 3:45pm that cold, gloomy day. Thanks but no thanks Ron. Just like that, I'm out. Laid off due to upcoming mergers. Without warning, I'm back on the market. I was extremely fortunate to rebound quickly. Many are not so fortunate. That's why when I read about layoffs at such giants such as Meta, Amazon, Google (Alphabet), Twitter, FedEx, Salesforce, JP Morgan Chase, and several others my heart goes out to those men and women.

As President of my organization now, I think back on the times when I was in that position. Delivering layoff news. I honestly dreaded having to do it. However I did indeed proceed with doing it. However that was some time back. In today's business climate, how should leaders best handle the aftermath of company layoffs?

Employee layoffs are a difficult decision for any company leader. They not only impact the lives of the employees being let go, but also the morale and productivity of the remaining staff. Despite the difficulty, layoffs may be necessary for a company to stay financially afloat or pivot its business strategy. In such cases, it is important for company leaders to handle the situation with sensitivity and transparency.

Here are some steps that company leaders can take when dealing with employee layoffs:

1. Plan ahead: It is important to have a clear plan in place before making the announcement. This includes figuring out which employees will be impacted, communicating with HR, and preparing a severance package if possible.
2. Be transparent: Company leaders should be honest and open with their employees about the reason for the layoffs. Explaining the company's financial situation or business strategy shift can help employees understand the rationale behind the decision.
3. Provide support: Company leaders should offer support to the employees being let go, such as job search resources, outplacement services, and continued health insurance coverage if possible.
4. Address remaining staff directly: It is also important to address the remaining employees and reassure them about their own job security. This can help to maintain employee morale and productivity.
5. Follow up: After the layoffs, it is important for company leaders to check in with both the impacted employees and the remaining staff. This can help to ensure that everyone is adjusting well and to address any lingering concerns.

In conclusion, employee layoffs are a difficult decision for any company leader, but handling them with sensitivity, transparency, and support can minimize their impact on both the employees being let go and the remaining staff. By planning ahead, being honest, providing support, addressing remaining employees, and following up, company leaders can navigate this difficult situation with grace and compassion. Those latter words are needed now more than ever.

Ron serves as President of?River City Capital? in Memphis, TN. Since 2010 RCC, an affiliate of?Community LIFT?(communitylift.org ) and certified CDFI nonprofit organization, has existed with a mission to?accelerate shared prosperity and revitalization in underserved communities through the provision of capital in Memphis and Shelby County. You can support the work of RCC by visiting rivercitycapital.org and making a financial donation. You can also establish mentorship one on one from Ron by becoming a member of ronbrooks.club ! His new e-book "Your Bankable Business" is available FREE there as well!