You are now Excommunicado...

"Thanks for your service but get out"

Despite what you may think, unemployment is steadily increasing, and the communication surrounding redundancies or job losses has been poorly represented. I will preface here that every situation is different and complex and requires sensitivity depending on the level of the person exiting, the repercussions, and the stakeholders who will be impacted. I will say, though, that a collaborative, transparent approach is more beneficial than a knee-jerk reaction motivated by a need for company or self-preservation.

As a business owner, I have encountered my fair share of poor performers. Despite efforts to resolve these issues, I have had to let employees go for various reasons, including absenteeism, tardiness, theft of intellectual property, theft of physical company equipment, starting competing businesses while employed, defamation, bullying, and stalking staff, among others.

It’s important to acknowledge that there are valid and fair reasons for terminations or redundancies. These actions not only protect the business but also safeguard those who work within it.

I will also say that how you leave a role impacts greatly on your future prospects and the worse the exit, the bigger the ripple effect. Everyone talks badly about work environments they have been in, but does your integrity, impact, and output withstand any comments made about your time there?

Below, I share my recent experiences in interviews with high-level executives and managers who have either resigned from their roles or been made redundant as part of cost-cutting exercises. These managers, who have been with their companies for several years, have positively contributed to the bottom line and created processes to streamline operations and save money.

Here are a few examples:

1. A manager at a well-known Australian brand was let go after 16 years. He received an email on Monday advising him of his redundancy, had a 30-minute conversation with his manager (without an HR representative) about brand protection, and was asked to leave immediately after the meeting on gardening leave. His team was informed via a group email, and he wasn’t allowed to speak with them before he left.
2. A partner at a mid-tier legal firm resigned after 22 years due to a personal incident that made her reconsider her career and future. She was transparent about her reasons for leaving, and the company initially agreed to a long handover with her clients and considered letting her take some clients with her. However, after a lunch break, her access and computer were locked, and she wasn’t allowed to re-enter the building. The company then held a team meeting, suggesting she had stolen company IP and was soliciting clients, which led to her exit.
3. A general manager I headhunted for a role gave his notice after five years with the company due to a lack of support, poor processes, and the owner’s unwillingness to provide necessary information and access. He gave his notice on Friday and was immediately asked to turn over his laptop and phone, not speak with his staff, and leave.

Such reactive behaviour has a ripple effect.

Making someone redundant and essentially kicking them out creates distrust and uncertainty. General Managers, who serve as a filter between owners/executives and line managers/teams, often build strong relationships with their teams. When they abruptly disappear, staff members become distrustful and closely watch management to see how the situation unfolds.

By the time these managers, who have run multi-million-dollar companies, reach me, their confidence is shattered. They feel ashamed, betrayed, used, and disconnected from their last experience, affecting their daily lives and attitudes towards job applications.

People leave jobs, and companies need to make redundancies for various reasons. However, transparency is key when making these tough decisions. A communication plan should be agreed upon, detailing how the news will be delivered to the team, what internal and external stakeholders will be told, and the exit strategy. This approach has reciprocal benefits: the manager can be used as a reference, the employee leaves feeling valued and respected, clients can be retained or professionally transferred, and the employee may help retain staff and even assist in hiring their replacement. This leaves the door open for future collaboration.

While some cases require immediate action due to contract breaches, in many instances, companies can protect their reputation, retain access to the departed individual for information, and maintain an ally within the company by handling exits professionally.

Effective communication during an exit, whether from the company or employee side, is always better received when it is professional, sincere, and includes a plan communicated to the team and wider stakeholders.

Final Tips and Advice

1. Have an HR person present but not leading the conversation.
2. If placing someone on gardening leave, allow them to collect their belongings comfortably, say goodbye to their team, and create a transition plan.
3. A bit of extra time spent immediately after a redundancy or resignation has positive impacts for the immediate and long-term future.