All relationships end.
In the cleanest scenario, as ironic as it might be, the relationship ends with a death. Closure is irrefutable, and the grieving process is filled with humanity and compassion from others.
The loss of a job is much muddier, and we can hide behind the adage of ‘it’s not personal, it’s business.’ But what is more personal if not the loss of livelihood? It removes our ability to provide for our families; it brings the shame and embarrassment that comes from being the one let go, and not others.
When I quit a job and gave one month’s notice, as is typical for an executive role, and was walked out rudely and unnecessarily, I felt a tinge of what being fired or laid off might feel like. It felt like a stomach flu and regular flu at the same time, sadness, anger and confusion. What did I do wrong? The reflection came much later, and I came to understand that the employer’s reaction only reflected the quality of the relationship we had while I was employed, or the lack thereof, and the trust that wasn’t at the level I thought. My bad. But also, theirs?
Separating amicably is both an art and a science.
The science part is about business economics and process management, and the art is about relating as human beings even while we are separating. A smooth parting of ways is possible, even under the worst of circumstances. This is where corporate culture, as experienced by the employees, makes a difference. Connecting as humans in the process has always been challenging, and labor laws give all corporations pause when it comes to messaging –what language should be used to explain ‘why’ the separation is happening. It’s complicated.
After sitting for decades at the table where these life altering decisions have been made, the experience hasn’t changed much. Leadership teams struggle with their decisions and positions depending on how they view people in the equation. Are we resources? Team members? Collaborators? Contributors? Commodities? Perhaps we saw and understood these attitudes and beliefs during the good times, but there is no other time when we experience the true colors more than when the ship is going down, or as we have seen recently, when the data shows that companies don’t need, or won’t need, the same number of people currently in their payroll.
Separation as Strategy: How Thoughtful Exits Drive Human Leverage
Whether we call it a layoff, restructuring, efficiency measures, or whatever, the emotional impact on the individual losing their job is the same. They were rejected. Dumped. Hurt. In some cases, careers are negatively impacted. And the tendency, due to cultural values, is to believe that more money, or less money if you are paying, is the goal, the answer, to what will make the problem go away quickly. When the communication and the process are mismanaged by the company, not only can it be more costly, but it can destroy any semblance of trust and loyalty that might have built with the workforce. The employee carries this sentiment to the next job, starting it with suspicions about the new employer and their intentions.
‘Employees are our greatest asset’ seems like an antiquated or today, an insincere tag line many companies continue to include in their stated core values. When a company does not act on this value, all its stated values may bequestioned. Are customers first? Are Vendors partners? etc. These stated values might live on websites and employee handbooks, but in practice, does leadership live these values, especially when employees are told they are no longer employed, that effective today they are terminated? Apt messaging after a termination decision could and should reinforce these values, rather than contradict them.
When very successful companies, based on market valuation, profitability and growth projections, lay off workers because efficiency, competition, and productivity can be achieved by AI,, this decision can be the most challenging to accept, the most painful, and the most confusing. In an M&A transaction, it is common to have redundancies in roles. It still hurts, but at some rational level this might be understood by the employee.
Handling these layoffs unskillfully has the real potential to damage the fabric of our society. To prevent this, we need skillful communication, with empathy, listening skills, patience, sympathy, negotiation skills, diligent follow up, and even love for our fellow human being can throughout the process. For an employee, separating from an employer involves a grieving process. To come through that process with one’s dignity intact requires support from the employer and/or from the wider community.
As with the death of a loved one, nobody can jump to acceptance without going through the process of grieving. Moreover, nobody can do this alone. Employers have the responsibility, the duty, to support employees through this process. Those who fail to do so risk damaging the morale of the employees who have kept their jobs (this time). It can devastate the post-layoff company culture.
Elevating Transitions: A Human First Framework for Separation.
The time to review the off-boarding process and how decisions are made and communicated is now.
Managing the Process:
Timing. Although there is no good timing, companies can make it worse by having a layoff right before a holiday. When the reason for the layoff is financial – the company’s revenues have been declining, not profitable, running out of money – it makes a difference and payroll for others is at risk, if you have to pay for holiday time. But when the action is due to efficiency predicted (time will tell), why not pay for the holidays and make the effective date later? The amount of money is less relevant than the gesture.
- Spend time with people. Listen to their feelings. This is time invested in the reputation for the future of the organization.
- Do not rush. The emotional process varies by individual. Take the cues from those laid off. Some will emote longer than others.
- Never on a Friday or before the end of the month.
Communication. Tell it like it is. Express empathy for those affected. Avoid making it sound like it’s a ‘good move’ for anyone. It is not. Save the positive vision for later, for those who remain employed. Reducing the communication to a mass email to all being laid off is not just insufficient, it’s ignoring the individual impact – that varies widely depending on personal circumstances. Chronic illnesses, college tuitions, mortgages, pregnancies and disabilities, for example, could all be dependent on one person’s employment. Yes, it is a lot more work on the part of the company, but the individual touch speaks to the character of the leadership and the ‘people’ culture invoked. 
Organization. Have all needed documentation and information ready and easily accessible. Leading people to a website is convenient, but also transactional. There is upside to handing out a paper version if the layoff is done in person. Something easy to refer to. EDD Unemployment links, Cobra for benefits, summary of last paycheck, etc. Make this EASY for those leaving. For remote employees, offer Office Hours when they can ask questions.
Outsource Support. IF the reason for the layoff has to do with AI efficiencies, conducting a workshop on AI resources available, help with resumes, a list of companies hiring, and how to process the change – use HR to lead and facilitate multiple sessions, individual and for groups, all help laid off individuals and differentiates great companies from others. Train laid off employees on how to use AI in their search. HR can organize support group opportunities, like coffee gatherings, to maintain the ‘connection’. This builds good will with retained employees as well.
Exit. IF the company trusted the employee the previous week to not be violent, to not steal, to not want to hurt others in any way, to behave professionally and decently, why not trust them the day of the layoff? This is about measured risk taking, and if the leadership knows the team members and can predict their behavior, why not treat them like law abiding employees and spend time, one last time, to part amicably?
In turn, employees should respect the company’s policies, including returning company property (laptops, cell phones, etc.).
Food for Thought
In the recent article The Agent in the Backpack, we addressed how employees can determine their value in relation to how they can use AI. It is becoming increasingly more important and critical, to intentionally reflect on what we each bring to the table for a new employer, or when becoming self-employed. There is a new vocabulary and to engage in the new relationship, we have to speak the same language.