Reductions in force—otherwise known as RIFs, layoffs, or workforce reductions—are complex and dynamic situations for leaders to navigate. The actual layoff process can be surprising and emotional, followed by the important task of keeping the remaining teams engaged and operating together smoothly.
The challenges presented by a reduction in force also give way to opportunities for inclusive leaders to support their teams and for organizations to emerge stronger than before. This takes proactive consideration, planning, and effort to move through tough changes and into a new phase of business.
The following recommendations and best practices are designed to guide leaders in smart and effective ways before, during, and after a reduction in workforce. Here are six smart steps leaders can take to support their teams.
Let people go the right way
Laying people off is difficult. But great company cultures extend beyond employment. If you handle layoffs well, even those you have to let go will remain ambassadors of your culture, people, and business.
Ensuring a lasting positive impression has a lot to do with how you handle the layoff process. Did you send out a curt email late at night asking them not to come in the next day? Or did you set up a meeting with a senior leader so that everyone has a chance to have a conversation about what’s happening and why? The way that companies lay people off sends an important and lasting message. Stay transparent, share why this decision needs to be made, and provide clarity of communication and next steps to provide a clear pathway forward.
Stay grounded in the core tenets of good leadership
Layoffs are an important time to stay true to two of the core tenets of effective leadership: communication and transparency. It’s far better to err on the side of over-communicating than under-communicating. This is an especially important time to stay in touch and connect with remote employees. Make time to check in and be available. Recognize that people are scared, nervous, and uncertain.
Help your employees understand the “why” behind a reduction in workforce before getting into the logistics of the whats and hows. Clearly explain the reasons and objectives for the workforce reduction. Be sure to answer the following questions: Why are layoffs happening? Why now? What is happening to the company? Clearly communicate where the company is moving and how everyone will be connected to these new objectives.
Provide more than the basic resources to those being let go
Chances are most of the people you’re laying off are going to be looking for new jobs. It’s important to show them that they matter to you even when they have to be let go. Go beyond the usual job placement and résumé writing services that some employers offer. Consider connecting those being let go with career fairs or even with other companies and vendors in your industry who may be growing or looking for new talent.
You could also share a list of the people being laid off with your LinkedIn network, email listserv you’re a part of, and other network circles. Ask your network to reach out to those folks if they might have a job, opportunity for them, or just to connect for future potential opportunities. Consultants, vendors, and contractors are excellent networking options, due to their relationships with other companies.
Create space for your teams to process emotions
Reductions in workforce aren’t just tough on those who are let go—they’re a difficult experience for those who stay behind, too. Make sure that you create a space where each team is able to ask questions, share their feelings, and process their emotions in a safe environment.
Show support for your team by being proactive. Schedule listening sessions as soon as you can and be clear that the goal is to talk about what happened and how everyone is feeling about it. Inclusive leaders consider the various lenses that the people on their teams will be bringing into these meetings. This may be the first time that one of your direct reports has gone through a layoff. There may be others on your team who have experience with reductions at other organizations and can share their strategies for moving forward or offer support and perspective. Make sure you’re prepared to tackle the issue from all angles—as an organization, team, a group of colleagues, and an individual because you are also going through this experience.
Be prepared to support new hires
A reduction in workforce doesn’t necessarily mean that there aren’t open positions that need to be filled. This can be a particularly tricky situation for leaders to navigate. Imagine being an employee who saw this huge reduction in workforce and is now seeing new people being hired.
Be open and honest about why these positions still need to be filled despite the layoffs. Then, make sure you’re preparing new hires for what they’re walking into. This way they’re prepared to join their new teams that just went through an excruciating process in a sensitive way. Additionally, people who are impacted by layoffs might want to apply for a new role. Ensure you have a process that’s clear for all.
Make sure employees know that they matter
This is the time to remind your team that they matter—that you want them to stay, to grow, to develop, and to be an essential part of your business. Management tools like creating a team charter and RACIs can help clarify changes and outline a path forward.
Craft meaningful internal messaging from leadership to ensure the organization can move forward thoughtfully and productively. Put together an FAQ one-pager, host roundtables with senior staff and HR, and have a panel discussion with the C-suite team. Invite all employees to participate so they can get their questions answered and share how they feel. And do not forget about your external partners. Ensure clear communication is established with all people that are involved in your business. You want employees and external partners to remain company ambassadors.
While it is common for layoffs to also include other cost-cutting measures, be sure to continue to invest in worker development. If you have to delay initiatives like an executive leadership program or new manager training, perhaps pivot to one-on-one mentoring sessions or something more manageable for the time being. The important thing is to never take development away.
The year ahead is uncertain, but uncertainty holds an opportunity for leaders to focus on creating a culture of inclusion and belonging. Hold town hall meetings, run an “Ask the Leader Anything” breakfast call, hold office hours, and stay connected to all employees. There are many ways to help ease uncertainty while letting your employees, vendors, community partners know how important they are.
Nettie Nitzberg is co-founder and chief learning and leadership Officer of Saterman Connect. She is also co-author of the book Arrive. Drive. Thrive.
Recognize your brand’s excellence by applying to this year’s Brands That Matter Awards before the early-rate deadline, May 3.
