In the midst of many heartwarming stories as the world adjusts to different ways of working as a result of Coronavirus, sadly I’ve come across a number of stories that show not every employer has the welfare of their employees at heart. Current circumstances will undoubtedly mean that employers are making the tough decisions to let some staff go (and here I’m talking about redundancy rather than furloughing), and in this post I want to share some insights from my years of experience on this subject.
As someone who has managed more redundancy programmes than I care to recall, I have learned that there’s more than one way of achieving the same outcome. I truly believe that the way redundancies are managed has a significant impact on a business’ reputation – something that will be of critical importance when some normality returns to our daily lives and people choose who to do business with.
Compliance and compassion
I have seen business leaders and HR professionals focus on one or the other when it comes to announcements and following up: compliance with the law and company process and procedures; or the well-being and welfare of staff. For me, focusing on both these elements is critical at every stage in the process. Of course, every employer should follow the right process to avoid litigation and reputational damage and an employee relations specialist or an employment lawyer can support the “what” to get that bit right. However, much less focus is often given to the “how” and it’s that more than anything that will be remembered.
Take for example the electric-scooter maker Bird, who laid off 400 staff last week via a mass Zoom video call. Now ask yourself why that was so widely reported in the Press given that, in the grand scheme of things, it wasn’t a big news story. It was of course, the means of delivering the message. The Chief Executive of Bird later stated, “In retrospect we should have made one-on-one calls to the hundreds impacted, over the course of a few days”. He got the point, but too late as the damage was done.
The human cost
Particularly in an economic downturn, with the focus on reducing costs, never see people as a commodity, or the liabilities on the balance sheet. They are the most important asset and deserve to be treated as such. Every affected employee has bills to pay, others to support and their own dreams and aspirations and all of those things will be in their minds. So when you’re planning redundancies it’s vital to spend time on how the message will be delivered, and the follow-up, as well as the mechanics of a legally compliant programme. And remember this: those people who feel mistreated, as well as their friends and family, have easy access to social media. Ask yourself how potential clients, and future employees, would view your organisation through the social media lens. I know that, for example, potential employees read reviews on sites like Glassdoor when researching employers.
It’s not rocket science
Forgive the idiom but it’s really not. At the most basic level stop and think about how you would want to be treated in the same circumstances. At the time of writing, we’re in the midst of dealing with Coronavirus and so of course, face to face meetings are going to be rare. But, don’t get everyone on a mass video conference call like the folks at Bird did. Take time to talk to people individually and if that’s hard because of your resources then find an employee relations specialist to help you.
Tell people that you realise how hard the message may be to hear but don’t tell them you know how they feel: you don’t. Empathy and not sympathy is the key and no matter how many times you have to have the same conversation, remember that each person you talk to is hearing it for the first time. Take a pause and mentally prepare yourself every single time: no rushing and no forgetting the impact of what you’re about to say.
Supporting people through the process
There are a number of areas I’d encourage you to think about:
Training for those delivering the message – Just because you’re a leader or an HR professional it doesn’t mean you have the skills and experience to get it right. Leaders of Change training, or something similar, will help you deliver the message in the right way. Importantly, it will also help address the emotional impact the message may have on those delivering it – something which is often overlooked.
Don’t forget the survivors – Those whose jobs remain are often forgotten but they too are impacted, often by feelings of guilt. Give them your time too and help them to work through their feelings.
Emotional support – Employees will value emotional support so if you have an employee assistance programme (“EAP”) make sure they know how to access it (and let the provider know confidentially in advance as it may create a spike in demand for them). If you don’t have an EAP then guide people to free to use online or telephone resources that are available.
Outplacement support – Making available the support of a professional outplacement provider will be of great benefit, if you can afford it. It’s easy to think that everyone’s aim following redundancy is to get another job but for some it’s a catalyst for retirement whilst others may be thinking about setting up their own business or returning to education. An outplacement provider will help them work through their goals and support them in attaining them. If however you can’t provide that service then what can your HR team deliver by way of mock interviews, CV reviews, support with accessing the job market and the like?
Give of yourself and your time – In all of this be human and show you care. In my experience people often hear the news then say nothing right away and don’t react. Questions and emotions can come later so let people know you are available and that you will ensure they have time with their manager or HR, on a one-to-one basis. True leadership in times of redundancy is demonstrated through compassion and empathy.
There’s a lot more I could go into in this post but as ever it’s about making you think, and reminding you that EG Advisory is here to support you if you need it. I will leave you with something I touched on briefly above and it’s this: don’t forget to look after your own mental health when making people redundant. You need to be in the right frame of mind to deal with others’ emotions and so I leave you with an airline analogy – put on your own oxygen mask before attempting to help others.