Key interests of employees during layoffs: a mediator’s guide

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Note: I wrote this a couple years ago for a client interested in how they could minimize the emotional toll of and the potential for destructive conflict during the layoff process. I came across it again late last year and, while I hope widespread economic layoffs are slowing now, I’m putting it out there for leaders and managers who care about the how of layoffs as much as they care about the layoff decision itself.

One true test of an organization’s claim to greatness is how it takes care of its people in the toughest of times.

People have all sorts of interests that smart and caring organizations should try to meet – meeting those interests, after all, creates more motivated and committed employees. The interests of employees being laid off matter too, because how well you meet those interests them influences your image, your organization’s image, and the morale of employees still working for you. Which, in turn, influence your bottom line.

The following interests are usually of primary importance to employees during layoffs, along with ways to address them. I haven’t included the obvious interest in financial security because most organizations are already aware of this interest. Instead, I want to uncover the interests usually less attended to, most likely to create escalated emotion and conflict, and most threatened by the ways some organizations and consulting firms carry out the employee layoffs.

Key interests of laid off employees

1. Saving face. Layoffs temporarily sever a portion of an employee’s identity. When asked, what do you do? they can no longer say, I’m a __ at __. And worse, when high performers are laid off alongside poor performers, organizations inadvertently create a special agony for those high performers, who are saying to themselves, After all the work I’ve done, everyone’s going to think I’m as inept as So-and-So. Face loss is a prime contributor to escalated conflict and anger.
    
   What this means in practice: Help employees save face by creating mechanisms for graceful exits. If the layoffs include both high performers and those with less stellar contributions, say so in your communications: We’re deeply saddened that our financial state in this difficult economy means that some of our top performers are among those whose positions have been cut. You’ll help the top performers feel acknowledged for their contributions, as small nod of comfort in difficult times.
2. Maintaining a modicum of control over their own destiny. It’s part of the human condition to want control over one’s own destiny. Firings, position cuts and layoffs take a chunk of that away. People don’t mourn just the loss of their jobs; they mourn the loss of captaining their future for the duration of their joblessness. For some people, this loss of control will translate into high emotion and increased divisiveness.
    
   What this means in practice: Even small ways you can allow laid off employees to retain what little control is left will really matter. How they want to exit. On what date. What will be said in communication to the rest of their colleagues and staff. If you think you must implement a one-size-fits-all approach to exits, think again – are you doing that because it’s easier on you or better for them?
3. Having time to absorb the shock. Not endless time, but the chance to get their feet back under them and clarity around what’s next before news trickles out and they have to navigate the stricken stares of others (“Am I next?”) or the condolences that’ll begin rolling in. People want a chance to be ready to reply and talk about what the coming days/weeks/months will hold for them – because everyone and their brother will ask, “What are you going to do?”
    
   What this means in practice: Create space for just-notified employees to get their wits about them. For some this may mean speaking to their loved ones at home before they have to face the larger organization. For others it may mean getting your counsel on what they need to do next (no, not fill out exit interview forms — next as in, after they walk out the door the last time). For still others it may mean closing their office door and being left undisturbed while they gather their thoughts or emotions.
4. Understanding how it is that good performers will be cut while some/many under-performers won’t. It’s easier to cut good people in the wrong seats than it is under-performers in the right seats when an organization has a non-courageous performance evaluation culture that’s tolerated under-performance and done a poor job documenting the need for improvement. Organizations perpetuate unfairness by getting rid of under-valued positions instead of under-performing people.
    
   What this means in practice: Fix your performance appraisal system and teach managers how to confront and convey difficult news effectively during evaluation periods. When you get it right, you won’t have to worry about this interest during tough times.

© 2007 by Tammy Lenski. All rights reserved.