Barbara managed a small company of 30 employees, a company we had been working with and helping to grow by working with the Laws of Achievement. Though the company was healthy and the team was growing in their abilities, through no fault of Barbara or her team, the current and projected level of business could not support 30 people. Barbara was forced to conduct a significant layoff.
Though she handled the layoff process as well as could be expected and worked with each employee to deal with unemployment issues and/or find other work, still she and the team members that remained were paralyzed…until Barbara learned how to manage the people left behind.
Layoffs are hard. And they are supposed to be. If they weren’t, it might mean you don’t have heart. Nevertheless, layoffs can become necessary even in a healthy business.
There are two main categories of reasons for layoffs. If an employee is not performing adequately, a manager needs to take that person through due process of counseling, training, or discipline. If the employee still can’t perform adequately, he or she needs to be terminated.
Too often we see companies putting up with inadequacies or incompetence, usually in the name of good will toward the employee. But this kind of inappropriate tolerance affects the entire team. At the least it lessens their motivation and morale, at the most it gives silent permission to be inadequate too.
A business is a business and needs to be conducted as one. Though you want to take care of people, you are not running a hospital. Though you want to accept people and help them grow, you are not running a church. A high performing team expects contribution from the team members and never tolerates incompetence. No contribution – no job.
A second reason for layoffs can be if there is a strategic decision to downsize. Outsourcing a current in-house function, eliminating a regional presence or the economy not supporting the current number of employees – all can cause a manager to lay off staff. And this is particularly hard.
Often, when a strategic decision to downsize occurs there is a decision to eliminate good people. When happens the individuals terminated can ask, “Why me?” (…as compared to other employees who, in their estimation, deserve to be fired). Even those left behind can say, “Why them?”
In any case, when layoffs occur, the event typically perpetuates questions, confusion and often fear in those left behind. There are many issues that need to be addressed in the process of layoffs – from HR, to financial impact to job restructuring. However, one issue that is not often handled well is managing those left behind.
The first consideration for their well being is to handle the layoff in a quick, kind, and caring way. Afterwards, especially if the layoff is significant, hold a team meeting to give as much reason and context for the layoff as possible. Be encouraging but not apologetic. This is one of those meetings where leadership skills (as compared to management skills) are supremely important.
The first person to consider in “managing those left behind” after a layoff is actually yourself. Your perspective will dictate your attitude and behavior. If your perspective leads you to feel remorse, guilt or being protective about those terminated, your attitude and behavior will be affected and transparent to others.
Get support, however, not from your staff. Seek encouragement, support or realistic perspective from someone senior to you or outside the company, as in your counselor, pastor or friend. As a manager, you must learn to “care without carrying.”
Next, it’s others on your team. The path of what to do is clear, but the timing of it is what takes wisdom. In addition to the process of loss, which each individual experiences, there are three phases the team as a whole will go through. They are as follows:
1. Adjustment: The team will need to adjust to a variety of realities surrounding a layoff – from personal issues, such as losing friends, to work load adjustments. During this phase there can be a lot of questions, confusion and questions about further layoffs. During this phase it is important to be close to your team. Give them as much information and perspective on the company as possible. Be positive, but not defensive. Your personal confidence about the future and firm stand on the necessity of the layoff decision is critical.
Be prepared for irrational responses. Unless significant, try to fend them off. Individuals who criticize and speak openly about their concerns may need to vent. This should be temporary. Making a mountain out of a mole hill at this phase can amplify something that may simply evaporate with time.
2. Challenge: It is important to allow a period of time for the adjustment phase. However, don’t get stuck at the first phase. A well meaning manager may perpetuate the complaints, concerns and fears of the team by continuing to talk about the layoffs, defend the decision, or act as a “care taker” of those who remain.
How long should you wait to begin phase two? This is your judgment call. Your personal wisdom or wisdom that comes from fellow leaders can determine when to engage this phase. Too quick and you appear insensitive. Too long and you risk embedding negative responses seen in phase one.
What needs to happen here is to call a meeting and create a challenge. The team needs to stop looking backward and begin to look forward. The challenge can refer to the need for the company to grow with the obvious implication – to avoid more layoffs. Be specific about what the challenge is and what each person or department needs to do to meet the challenge.
At this phase you need to be a leader and a manager. Be motivational and clear on the tasks, tools and metrics for success.
3. Development and growth: Remember – growth sustains success. When you and your team have normalized after a layoff, it’s time to get back in the saddle and work on growth issues. Developing, training and growing your team will support the challenge in phase two. Additionally it will create a stronger work force to grow the business.
Returning to the development and growth of the business is important now too. Strategic plans, marketing efforts, getting more efficient – all are important activities towards growing your business and preventing further layoffs.
These three phases will strengthen the team and build your business. Phase one, Adjustment, allows the team to vent, decompress and find their footing. Phase two, Challenge, gets the team looking forward again. Phase three, Development and Growth, is focused on preventing further layoffs. Taking a team through these three phases is the best way to manage those left behind after a layoff.
Bill and Joann Truby, are authors, consultants and speakers, who are focused on helping individuals achieve personal fulfillment and organizations increase their performance. They are the founders of Truby Achievements: http://www.trubyachievements.com
