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How to Be a Compassionate Company During Layoffs

Nobody likes layoffs. As business leaders and HR professionals, it’s one of the hardest things we have to do. It’s also a reality many of us haven’t had to face in over a decade. But in the middle of this COVID-19 upheaval, layoffs may be necessary to carry many businesses through. You may not have control over reducing your head count, but you can control how your employees experience those reductions.

Here’s how to hold layoffs as a compassionate and supportive company.

  • Lay off in groups. If you have to lay off multiple people, do it in the same day so that the impacted workers can leave at the same time. It sounds rough, but ripping off the Band-Aid is less traumatic than a slow seepage of outgoing employees. That said, don’t lay off employees as a group. Each layoff is a person losing their livelihood; it is deeply personal. Each impacted worker should be met with in turn and delivered the news in a compassionate, supportive manner.
  • Plan ahead. You don’t want to wing layoffs. Depending on your circumstances and industry, you may need to meet certain legal requirements to avoid a lawsuit. The HR team should lead the charge to craft guidelines for layoffs and the individual employee conversations.
  • Don’t wait for Friday. No day is a happy day to announce layoffs, so holding the news until Friday won’t help. Once the road to layoffs is clear, take the first step to enact the plan. Make sure key members of your leadership team, including the impacted workers’ immediate bosses, are in the loop before you get started.
  • Provide as much ongoing support as possible. Layoffs are a big blow to impacted workers. As a caring company, it’s your duty to provide as much continued support as you’re able. Try to plan your layoffs with enough budget to support your impacted workers. This may mean providing severance, outplacement services, or ongoing benefits like health and life insurance. You can also prepare informational packets about job connections and community resources. Your impacted workers and their families will be grateful, and your company’s reputation will shine in a darker time.
  • Keep communications open. Layoffs shake up employee morale long after the layoffs are over. Especially as economic times remain uncertain, your remaining employees may be wondering when the next round of layoffs is coming, and whether it will come as a surprise. Ease their minds and mitigate voluntary turnover by keeping employees informed. Regularly (at least monthly) update them on the company’s plans and financial position, as much as you’re able. If a layoff is under consideration, explain as much as you can, such as how much of a reduction is anticipated and when that decision is expected to be finalized.

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