layoffs

Sun 20 November 2022
In the United States, 45% of businesses don’t make it past five years. 65% don’t make it past ten years. Yet everyone who ever starts a business backs themselves to beat the odds. Is it possible to predict if a business will be a success or a failure in its future? 
Recently, there have been many layoffs in the US, specifically within technology companies. There are 159 million people currently employed in the US, and in the past month there were 1.3 million layoffs.
“There have been several thousand high-profile layoffs in the tech sector in the past couple of weeks. While this is unfortunate, it is useful to keep in mind that the labor market is significantly larger and has been overall healthy,” Bledi Taska, chief economist at labor market consulting and research firm Lightcast, said.
Today’s economic uncertainties have fueled an unstable job market and created an unsettling environment in the workplace – where the lack of transparency, internal politics, the growing number of siloed departments and hidden agendas have made it more difficult to trust yourself, let alone others. What appears to be an endless path of disorganized chaos is now “the new normal.” As such, we must become mentally tough and learn to anticipate the unexpected. 
Employees must approach the workplace through a lens that can detect potholes of distrust while staying focused on seeing and seizing the next opportunity.
 
How Does A Company Decide Who Will Be Laid Off?
There is no one formula that companies use when they need to let go of staff to cut costs. Some organizations may subscribe to the “last one in, first one out” model. Management prefers to keep the long-time staff and pink slip the new employees who just started at the company.
Leadership wants to field the best team. They’ll protect the “A-players” and let go of those who are not top performers. People with highly specialized skills that are hard to replace may be overlooked for dismissal, whereas workers that possess talents that are easily replaced are not safe.
 
Will You be Affected by a Layoff?
            If you are in a revenue-generating division, the odds are high that you’ll be safer than the people working in a cost center. It’s a cold reality that employees and groups that bring in the money generally have more leverage than others who can’t point to adding dollars to the bottom line. In tough times, businesses need people who can ring the register. Those who may be terrific workers, but are not revenue-centric, may have a more challenging time holding onto their job.
            Human resources may weigh in on decisions of who stays and who will be shown the door. They’ll search through personnel records to review performance reviews, look for any recommendations and see if a person committed infractions, violated rules or has a history of causing problems.
            The chief financial officer and accounting team may crunch the numbers and determine that senior employees will be culled. Older workers, on average, tend to earn more than younger staff members because of years of experience. It's not fair, but their higher compensation places a target on their backs. 
It's convenient for the company to say they are just dissolving a unit that has many senior people with sizable pay packages. The business can downsize to fewer highly compensated professionals instead of many mid to junior staff members.
There needs to be a better way for employees to make more strategic evaluations of their employers. From an operational and business perspective, you should be able to predict that your employer will be able to pay your salary, commit to the number of hours per week that you sign on for, and be able to maintain your employment given the success of the company. 
 
How To Identify an Employer You Can Trust
 
1. Reach out to current employees
Even though initiating conversations with current employees might feel a bit awkward at first, the payoff is well worth it. Talking with them is the absolute best way to discover if a company’s branding/messages are accurate and trustworthy. Plus, you’ll get a chance to learn if their interview promises align with their everyday actions.
For example, you might expect your potential employer to provide updated training to any employees affected by automation or innovation.
Don’t just network with your soon-to-be boss or hiring manager. Reach out to potential co-workers. Those who are in the trenches will be able to share if leaders follow through with employee feedback, honor their mission, fulfill promises, etc.
 
2. Research the company’s societal impact
Every prospective employer is vying for top talent, which means they’ll try to make the business look as appealing as possible. Many are doing this by expanding their employer brand and focusing on something all candidates agree on, making the world a better place. 
If you browse the company’s social feed or website, you might see stories sharing how they’ve served the local community, or posts featuring employees’ opportunities for volunteering. But it’s important to understand that they’re creating the narrative they want you to see. What’s their true societal impact?
Social media is good at distorting reality. So, turn to Google and do your own digging: Research the company’s title, leaders’ names, etc. to learn if your prospective employer presents accomplishments in an honest, trustworthy manner.
 
3. Compare reviews to the career site 
Piggybacking off the idea that businesses want to appear as appealing as possible, be wary of company career sites. Each one is designed to draw you in and make you feel connected. A prospective employer will share its best features, such as:
 
●       Competitive pay
●       Amazing benefits
●       Flexibility
●       Work-life balance
●       Paid time off
 
But before you get too excited at the thought of having found your dream job, check out a few review sites. Glassdoor, for example, is a great place to find company reviews from current and former employees. Compare those reviews to the career site promises to measure the truth behind employers’ claims.
 
4. Ask the right questions during an interview 
The interview isn’t just about proving how well you fit with the company, they also need to prove that they’re a good fit for you. Use the time you have together to let them know that employee-employer trust is a critical factor in your decision-making process.
Be direct in your questions and focus on what’s most important to you. For example, if you want to know you can trust the employer’s promise to deliver career development and opportunities to advance, ask for specific examples of how they’ve done this in the past. Then, take things one step further and ask how they plan to provide the same to you (should you receive an offer).
Trust is a two-way street; be transparent in what you have to offer, and your prospective employer will likely do the same.
Fri 23 December 2022
With changes occurring in the economy, many companies are laying people off, many times in waves. This can impact the morale of those that are left.
 
When employees are spared, they feel relieved for a little bit before they start thinking and worrying about the next wave: “Will I be next? I better start looking for a job elsewhere; What am I going to do?”
 
Thoughts like these are the symptoms of a syndrome, the survivor syndrome. The effects of this syndrome will cause a sharp decrease in employee engagement and productivity. Recent research through Velas Coaching has shown that after layoffs, employees often report reduced commitment and performance.
 
While some may feel lucky to still be employed, others may experience mixed feelings. They may be relieved to still have a job but simultaneously guilt-ridden about the suffering of former colleagues who were let go. 
 
This type of “survivor guilt” is normally associated with the emotions people experience after facing a traumatic event or accident that looks at the lives of others, but it can also happen after corporate layoffs. 
 
It’s not uncommon for the employees left standing to wonder, “Why did I make it, but they didn’t? or “How am I going to face my friends who were released knowing that they’re in a bad financial situation while I’m still employed?” Survivor guilt may be made worse by a perception that the company failed to recognize or reward trusted colleagues and friends and instead eliminated them.
 
Studies by the Harvard Business Review show that nearly three-quarters (74%) of employees retained after a layoff saw their productivity decline after it, while 69% said that the quality of their company’s product or service deteriorated. When these respondents were asked why they felt that way, they expressed feelings of guilt, anxiety, and anger. 
 
The good news is that workers who felt that their managers were visible, approachable, and open were more than 70% less likely to report a productivity drop, and 65% less likely to report a decline in the quality of their organization’s offerings. These numbers show that leaders can make a big difference in helping retained employees deal with their survivor guilt.
 
As a leader you probably are asking yourself: “what can I do to help my team go through that dreadful layoff cycle?” Here are three suggestions:
 
1- Before the layoff cycle starts – Fight for your team
 
You may have heard the story of Bob Chapman, the former CEO of Barry-Wehmiller, a family owned company. In 2008 at the bottom of the recession, the company was hit very hard, and they lost 30% of their orders very fast. The board decided that they needed to save money and pushed for layoffs. Bob refused, so he came up with an idea, a furloughs program. Everyone was going to take an unpaid vacation so everybody will suffer a little as opposed to a few who suffer a lot. Guess what happened to the morale of the employees? It went through the roof. If you have the chance, protect your team at all costs and make sure they know you are doing it.  
 
2- During the layoff cycle – Conduct them with empathy
 
As employees process the layoff cycle, they start to believe that the company they work for does not care about them, that they are pawns, merely a piece that can be easily sacrificed for the company’s sake. But it doesn’t have to be this way. As a leader, your ability to communicate effectively and regularly with your employees is invaluable in the long term. Much of how employees perceive a layoff depends on how much information is shared, and where it is coming from; it should come from you.
 
●       Listen and acknowledge their fears
●       Ask how your employees are doing and respond with empathy
●       Make sure you validate or dispel the “rumors” out there, fast
●       Make sure you are available, open-door policy
●       Don’t hide the truth
 
3- After the layoff – Lead by example
 
When you perform a layoff, you’ve probably harbored feelings of regret for having to lose members of your team and feel anxious about the light in which survivors see you. Now you are managing a team of survivors, the lucky ones who didn’t get laid off. Therefore, you need to set a positive tone but also be realistic. Good fortune doesn’t make good performance. 
 
Kick your leadership skills into high gear and focus on transitioning your surviving employees toward a new brighter future. Make employee engagement your number one priority, creating a safe space for your employees to succeed.
 
Organizations that invest time, money, and attention helping the remaining employees stay engaged are much more likely to succeed after a layoff than see diminished productivity. How your remaining employees perceive you are handling the process will set the tone for renewed trust in the relationship. If you handle it with integrity and empathy, you will minimize and perhaps eliminate adverse impacts of the survivor syndrome on your team.
Fri 27 January 2023
The word “layoff” is a word that sparks unease in any workplace. After all, it’s associated with a loss of income for the worker, as well as a sign that doesn’t bode well for a company. While a layoff is primarily a defensive management move, it is important for a manager to understand how to properly lay a set of workers or an individual worker off. 

Layoffs Vs. Other Forms of Termination

 A layoff is not the same as termination of an employee. It is an involuntary separation from work initiated by an employer or manager. It is through no fault of the employee, and keeps them eligible for unemployment insurance, but losing other benefits. Most of the time, laid-off workers also still get to keep their investments in a company retirement plan such as their 401k. 

  A layoff differs from a furlough as well, in the sense that it is generally permanent. A furlough is when workers are idled for a time as a result of repairs, or another event requiring a temporary work halt, while also continuing to receive their benefits with the expectation that they will eventually return to work. Layoffs are genuinely utilized to remove groups of people at a time, ranging from several individuals, or even thousands. They are generally prompted by bankruptcy, financial hardships, or even being bought out by a larger company. 

 Layoffs often correspond with significant economic events. In the U.S, employers laid off employees en masse due to the drastic downturn in demand during the COVID-19 Pandemic, as many areas closed down travel, dining, and service. According to the U.S Bureau of Labor Statistics, over 20 million jobs were cut in April 2020 alone.

 Understanding what makes a layoff is critical to being able to conduct one. But there are a few steps to take before signing the final papers to let go of a series of workers, including a meeting, as well as several other steps.

What to do before the Meeting

Before the meeting, a gameplan needs to be established. To start this gameplan, what positions are slated to be cut? Is there any alternative besides completely laying off these positions? In addition to this, finances of a layoff need to be considered. 

Removing workers with a layoff requires a severance payment, and sometimes also advance notice. It is extremely important to consult human resources or any form of legal department to determine if legal advance notice is required. Violating this can result in serious fines.

Determining if some employees will be needed for a transitional period can be critical for the business. Not every layoff conversation will be identical, since some employees may have information that would be valuable towards the rest of the company. For example, if you are removing about a quarter of an operations team, the remaining three-quarters might not necessarily have had the removed’s responsibilities.  Therefore, keeping that quarter temporarily  to train the remainder of the team, with compensation of course, would be very valuable.   

As stated before, meetings need to be scheduled with any staff members potentially being laid off. The amount of members in a business could qualify it for the Worker Adjustment and Retraining Notification Act, which legally mandates that employees laid off receive at least two months’ notice. Therefore, the date of this meeting may be flexible depending on when the business is obligated to give notice.  

When scheduling the meeting, consider days before a weekend or a holiday to give the employee time to cope afterward. Being laid off is a painful experience, and understanding how to alleviate some of the pain associated with this can be valuable. Remember the following- for the manager, this is just less people to pay, but for the individuals being cut, this means the end of a regular income, no 401k, and no other perks, such as health insurance. All in all, this is a very stressful time. 

During the Actual Meeting

When actually meeting with the employee, there are a few things to consider. Pick a time and place that is both private and neutral, such as a conference room. This time should also allow for an employee to leave the building privately. Layoff meetings might also need to include other people, such as an HR representative, or potentially security as well. 

 Have any paperwork or materials needed for this meeting before the employee gets to the meeting. This allows it to be as concise as possible. This often includes termination letters, COBRA papers, a final paycheck, severance paperwork, and other items related to the severance packet. 

 Remember what the objectives to this meeting are. For the manager, as well as the company, the goals are the following:

  • Have a concise, but compassionate meeting to inform the employee that their position is to be eliminated
  • Protect the employer brand, especially regarding their reputation for future recruitment
  • To be as courteous to the employee as possible
  • Deliver the message to the employee for them to hear clearly while retaining dignity

While keeping these goals in mind, deliver the message as quickly as possible, while still being kind. Have a box of tissues on hand as well. Praising previous accomplishments can help the employee’s ego. If the company has the ability to do so, provide outplacement services and job counseling. Outplacement services can help with job-searching and resume writing, as well as consulting. This shows that the company can truly care about the employee.  

At no point should there be anger or disappointment displayed towards the employee. This is a painful time already for the employee, and it doesn’t need to be further compounded by adding more negative sentiment into the meeting. Be ready to address questions and objections to your statement. Always provide some form of support for the employee. After all, you may be able to hire them in the future, so avoid burning a bridge with them. Finally, don’t hesitate to offer to write a letter of recommendation for their next job, or act as a reference. Being laid off can put someone into a stupor. Understanding how to care for them can really make a difference. 



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