Top Skill Often Absent Among Leaders Amid Job Cuts, According to Recent Poll
Layoffs can have a profound impact on both employees and the remaining workforce. According to recent statistics, 62% of employees lose trust in their employer after layoffs, with 71% immediately starting job hunting and 80% believing that companies underestimate the impact layoffs have on the workforce as a whole.
In an effort to mitigate these effects, it's essential for companies to acknowledge the impact of layoffs on survivors, address concerns about increased workloads and future cuts, and provide resources to maintain morale and productivity. Empathy, far from being a mere soft skill, should be the core leadership trait guiding all communication, big or small.
The consequences of empathy-deficient layoffs extend beyond immediate cost savings. They can lead to direct financial costs, such as replacement and training costs for new hires when growth resumes. Moreover, they can result in loss of employee trust and retention, reputational damage, and long-term organizational impact.
The anxiety surrounding job security is heightened in today's economic climate, with concerns about recession, company-wide layoffs, and the growing fear that AI could replace human jobs. In a new survey by INTOO and Workplace Intelligence, 53% of employees globally expressed worry about losing their jobs within the next year.
Notable companies like Microsoft, LinkedIn, and Airbnb have demonstrated empathetic approaches to layoffs in recent years. They offer extensive outplacement support, transparent communication, advance notice, and personalized assistance including counseling and job search resources to affected employees. The emphasis is on dignity, clear information, and ongoing support during the transition period.
Explaining the reasons behind layoffs is a key aspect of transparent communication. Companies should be open about market shifts, product issues, or external factors that necessitate layoffs.
Recognizing layoffs as defining leadership moments that reveal organizational values and leadership character is important for long-term competitiveness and organizational culture preservation. CEOs like Patrick Collison of Stripe and Satya Nadella of Microsoft have acknowledged this, communicating layoff decisions with transparency and admitting mistakes.
Empathetic layoffs involve explaining why layoffs are necessary, considering alternatives, using personal and empathetic communication methods, preparing managers for layoff conversations, and supporting survivors. Offering outplacement services, career counseling, resume assistance, networking opportunities, and extended benefits coverage are components of comprehensive support programs for employees during layoffs.
Training managers in emotional intelligence to handle difficult conversations with empathy is crucial for effective layoff communication. Developing clear communication protocols with consistent talking points and flexibility to address individual needs is also important.
However, companies often fail in several key areas during layoffs, including lack of transparency, impersonal approaches, inadequate manager preparation, and neglecting survivors. One in five employees would complain online about poor layoff handling, and this rises to one in four among Gen Z workers. Nearly half of companies have faced social media backlash after layoffs.
In conclusion, empathetic layoffs are not just about minimizing immediate costs, but about preserving employee trust, maintaining organizational culture, and ensuring long-term competitiveness. By acknowledging the impact of layoffs, communicating transparently, and providing comprehensive support, companies can navigate this challenging process with empathy and integrity.
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