Assisting Layoff Survivors
What happens to the employees who remain after a reduction in force? Most employers do a good job of providing a safety net to laid-off employees through outplacement, counseling, severance pay, and extension of benefits, notes William M. Mercer, Inc. However, employers often fail to see the tremendous psychological effects staff reductions have on the surviving employees.
Survivors issues. Outplacement experts have argued the value of survivor assistance training. Examples of survivor s issues may include:
Adverse effects can include depression, feelings of guilt over being spared, sleeplessness, and increased smoking and drinking.
Survivors may become depressed when their friends and coworkers lose their jobs.
They are uncertain about what they can do to save their own jobs, and they want to maintain low profiles so they will not be the next employees laid off.
Survivors also may become less productive because they may be compelled to handle some of the workload of former employees, unsure about their responsibilities and confused about what is expected of them.
Survivors have observed that competent performance may no longer guarantee continued employment and may begin to lose their trust of management.
Once the contract between management and employees is broken, employees may attempt to increase the benefits they derive from the relationship by demanding more pay, promotions, or increased recognition or security.
In the alternative, employees may also reduce their contributions to the company by performing less work, working shorter hours or reducing the quality of their work.
Other employee reactions to downsizing include increased absenteeism, complaints, resistance to suggestions, unwillingness to put in extra hours, and strict adherence to job descriptions.
Because of the atmosphere of uncertainty, employees may react by becoming extremely cautious. They feel that if they don t make decisions, then they can t make a mistake and draw attention to themselves.
In the short run, says Mercer, the productivity of employees drops. In the long run, employees tend to have less confidence and trust in their employers.
What management can do for layoff survivors
Kwasha Lipton. According to benefits consulting firm Kwasha Lipton, in a layoff or reduction in force part of what makes people angry and resentful is that they hear rumors, but they don t know how the reduction is going to work or how it s going to affect them. The first time that there is a meeting among senior managers about a layoff or reduction, management should start the communications process, because the word will be out. If a lot of unexpected meetings are going on, employees will start asking questions.
Communicate as soon as possible. If a company really believes that there will be a reduction, then as soon as there are any facts at all, those facts should be announced, even in a general way. A general announcement might just say we re looking at the following kinds of changes and we don t know yet how they re going to affect people.
Use informal methods. There are ways in the normal course of business, without making a special announcement, that employers can begin to communicate some of the factors leading up to bad news such as a potential layoff.
EXAMPLE If management has frequent staff meetings or department get- togethers where business reports are delivered or business is discussed, managers may want to color what they say in a way that begins to imply that business is not great or that they re looking at some alternatives, so that people are not taken by surprise.
Make your case. When employers have bad news to deliver, it s not realistic to expect people to be happy. However, employers want employees to accept that what they are doing is the best course of action, or to understand that the choice that management made seems to be a logical choice, based on the alternatives. Thus, it s important to take people through the alternatives of what management s thought process was. This goes a long way toward getting people to come to the same conclusion.
Kwasha Lipton suggests that employers should communicate information to employees in a personal way that tells individual employees what the reduction in force means to them. For example, it may means that the company will not be able to have a Christmas party, a Christmas bonus may be smaller, or health benefits may be reduced.
Communicate the plan. Ultimately, notes Kwasha Lipton, employers want employees to feel that management is thinking carefully and has employees best interests at heart. Management wants to convey that it is not just shooting from the hip, that there s a long-range plan, and that long-range plan may change in response to external factors. The more this plan is shared with employees, the more comfortable they will be with the decisions that affect them.
William M. Mercer. Mercer suggests that employee programs should be provided to assuage the trauma of mass layoffs. Some employers beef up their employee assistance programs. Others establish special forums that provide opportunities for employees to vent their anxieties.
Be honest. When a layoff is imminent everyone in the company needs to regroup, suggests Mercer. Rather than sugar-coating the truth, executives should set the tone by acknowledging that tough times lie ahead. For example, an employer can hold workshops that explicitly discuss the psychology of downsizing. Such workshops allow managers to feel that they can lead their teams through rough times while creating new strategies.
Involve employees. The more employees are involved in regrouping, the less likely they will feel like victims. A tangible sign to employees that they can prosper in the downsizing, such as a bonus for employee suggestions on getting more accomplished with less, helps employees adjust.
RainmakerThinking. Other than those who lose their jobs, the people most affected by downsizing are the employees who remain in an organization after major job cuts are made, believes Bruce Tulgan, author and consultant at RainmakerThinking. Many of the survivors will share the bitterness of the downsized, yet managers will be relying on them more than ever. Those remaining will be expected to improve productivity and profitability, and retaining them can be critical.
Tulgan advises employers to take the following steps, specifically geared towards survivors:
Make sure the message is clear. Leaders in the organization should be a source of reliable, consistent information about why, when and how the cuts will be made.
Communicate swiftly and kindly. The overall situation should be shared in group meetings, printed material and e-mail, but individual situations should be discussed in one- on-one meetings. Managers who will be conducting group and/or individual meetings must be well-prepared in advance. How people are treated when they are leaving the organization is a powerful signal to those who remain as employees.
Gather information. After a major staff cut, conduct strategic employee polls and focus groups in order to measure changes in employee attitudes and identify important issues. If the organization is not gathering this type of information, individual managers should do it informally. Get out there and talk with people, in small groups and one-on-one. Measure the damage to attitudes before you proceed.
Aggressively get people on board again, one at a time. Managers should go out of their way to renew the on-boarding process, as if every employee who remains is brand new. Remind each person of the mission of the organization, the mission of the team, and his or her role in relation to the mission.
Communication strategies in a downsizing
Survivors need personal attention to enable them to regain a sense of inclusion in the organization.
Stress value and future. Managers need to recognize employees individual value to the organization by telling employees that they are aware of their unique contributions. By discussing with employees their vision of the company s future and the ways employees may expect to benefit, managers can enhance survivors feelings of self- worth and security.
Be open to feelings. Managers may also need to stay in touch with employees feelings about the downsizing. For example, they could, on a regular basis, spend some unstructured time with employees, either alone or in small groups, and discuss feelings rather than work. Some employees may be defensive or uncomfortable in this situation. However, managers should encourage openness and honesty.
Time to grieve. Finally, employees need time for grieving. Downsizings disrupt relationships, and one reaction to these changes is grief. Managers should allow employees the time to work through such grief, and encourage them to discuss their feelings. This will enable them to put their grief behind them and come to terms with the reality of the layoff.
Modify communication practices. Because of the high level of uncertainty and insecurity associated with downsizing, the communication process and requirements during a layoff are significantly different from typical business communication requirements.
There are two basic types of communication that should be included in the downsizing transition process:
1. communication to keep employees informed about the layoff, its ramifications and its implementation; and
2. communication to facilitate getting the work done.
Questions usually emerge concerning the nature, extent and timing of these communications. Typical questions include:
When should the announcement be made?
How clear and straightforward is the disclosure?
Will top management be retained, and, if so, should that be addressed in any statements?
Do communications spell out corporate goals?
Do they address basic employee concerns such as whether there will be demotions, transfers, relocations and other job changes?
Beat the grapevine. Because of the sensitivity of the issues involved, rumors and speculation about impending staff reductions can contribute to a heightened sense of anxiety. Any resulting communication gaps are inevitably filled by informal interpersonal communication that the company may have little, if any, control over. Employees may spend several hours during a work day gossiping and worrying about an impending job loss.
Retain credibility. Employees are more likely to react positively when they are well informed than when they are forced to rely on hearsay and speculation. Thus, the creation of formal internal communication channels as early as possible in the process may reduce some of the anxiety fueled by rumors, the office grapevine, or even outside news reports. Accurate information about both favorable and unfavorable developments enables employees to more effectively plan for the future. Inaccurate information is worse than no information at all.
The congruence of communications with what is really happening is as important as the quantity of communications. In times of stress and anxiety, employees attention to the details of the communication (what it really says) and its congruence with what they see happening is intensified.
Establish two-way communications. For a layoff to be successful, a two-way communication system should be developed that not only informs people but also provides them with the opportunity to raise questions, and air fears and concerns. These needs can be met through newsletters, hot lines and group presentations.
Newsletters and hotlines. Many companies are increasingly using in-house newsletters and phone hot lines to disseminate information and answer questions. Newsletters can clarify many of the issues surrounding the reduction in force and provide an outlet for dialogue regarding employee concerns and questions. Hot lines can provide employees with a channel to anonymously raise questions, express concerns and offer criticisms and suggestions that they may not feel comfortable doing in person. The hotlines help to both clarify employees concerns and problems that would otherwise be the subject of rumors and hearsay and inform the company of the kinds of problems and concerns employees are faced with.
Presentations. Another way to alleviate some of the anxiety associated with the uncertainties and ambiguities surrounding a reduction in force is to hold a series of group presentations that address employee concerns. Examples range from general orientation sessions and discussions about the layoff to highly specific presentations on issues like severance, benefits, job assignments, outplacement and relocation possibilities. As a general rule, senior managers should conduct these meetings.
Topics for discussion. Among the issues that should be addressed are:
1. reasons underlying the downsizing decision;
2. general facts about the reduction;
3. changes in company management and structure;
4. the elimination of or addition to any function;
5. how reduction in force decisions will be made
6. transfers to new job assignments or geographical areas
7. changes in working relationships (colleagues, reporting relationships, departmental interactions);
8. how business will be conducted during the layoff period
9. general changes in company policies.
Accurate and honest responses to questions about these issues should give employees a realistic view of what the layoff will mean for them personally and the company as a whole.
Workshops and counseling. Even if employees are given accurate and timely information, they will still tend to experience conflicting emotions ranging from shock, anger, disbelief and helplessness to hope and even high expectations about the future. It is important to assist employees in dealing with such feelings.
Workshops can provide employees with ways to understand what is happening and enable them to regain some sense of control over their lives and their careers. Participation in these seminars should be voluntary. Group workshops are an economical approach to meeting the needs of a number of people and creating a support system among coworkers. However, individual counseling efforts may be required to help employees cope with what is happening in the company and their lives. Counseling can help employees clarify their own needs and expectations in regard to their role in the organization and their careers. There are three categories of counseling: personal adjustment counseling (focusing on an employee s emotional responses); educational counseling (providing employees with information on the reduction); and career counseling and training (attempting to clarify issues dealing with choices and opportunities and provide marketable skills).
Survey feedback. Diagnostic surveys, used frequently in organizational change programs, are an important source of information with which to facilitate a downsizing. Through organizational surveys, employers can develop a foundation to understand the reactions of surviving employees. Typical areas of concern in layoff-related surveys include:
- level of organizational commitment,
- degree of job satisfaction,
- impact on interpersonal relations,
- feelings of job security,
- attitude toward management policies and style,
- concerns about advancement and career, and
- belief in the underlying processes and outcomes of the reduction itself.
Communication tips. There are specific actions an employer can take to be effective as well as to reduce potential liability. Employers should:
Tell the truth. Do not hide, equivocate or otherwise be less than candid. If you cannot answer the question because of confidentiality concerns, say so.
Never make promises or statements that cannot be met. No one, in any management position, should be making statements that he or she is not authorized to make.
Maintain a caring, sensitive and objective attitude to retain credibility. However, if there is little workplace credibility before the reduction, there is little hope of increasing credibility during the downsizing. Generally, if the company has been perceived as being fair in the past, that perception will continue.
Never imply that the reduction in force is the fault of the employees who have lost their job.
Consider recruiting former employees as counselors and peer support staff as a part of your outplacement efforts. This action will underscore your commitment to former employees as well as to all employees.
Ensure that employees do not read about downsizings in the local paper first. Careful planning and a commitment to employees will ensure that this will not happen.
Communicate the steps the company will be taking to address why the downsizing was necessary and to ensure that those factors do not occur in the future.
Reprinted with permission. © CCH