September 2004

CONCERN
 

Staging a significant layoff inevitably sets up a conflict between the compelling business need driving the layoff and the core corporate commitment for the welfare of its workforce.  In the midst of this dilemma, how do you care for the impacted employees and demonstrate to the remaining workforce that your core values have not been abandoned?  Companies who manage this well show the capacity to drive their final decision-making to a third level of consideration.

After the compliance and liability considerations have been carefully assessed, and managers have weighed the pros and cons of who to keep for the benefit of the business going forward, this additional level of decision-making weighs the common human concern factor in the selection process.

The bottom line is that your organizational recovery time may suffer if the human concern factor is left out of the layoff equation.  Your employees will have already made their judgment about the level of concern they see demonstrated at the time of the layoff event.  Recognizing what you could or should have done after the fact is too late.

What does this corporate human concern factor look like?  Here are a few examples from our files that might bring the point home:

·         A company facing significant layoffs offers a voluntary layoff incentive to court the transition of staff who have more financial flexibility or career options to consider. The payoff?  Employee perception that everything possible has been done to avoid involuntary terminations when they become necessary. 

·         On the eve of a 20% reduction in force, particular attention is given to not terminate both husband and wife who work in the organization, and to audit the short list of notified staff for extenuating personal circumstances (e.g. terminal illnesses within the family, recent loss of spouse or significant other or unusual economic hardship) that might alter either the decision or the transition package offered.

·         Three days before the termination event, it is noted that one department has long tenured and narrowly skilled workers who have not looked for work in two decades and are receiving minimal transition support. Packages are recalibrated in recognition of their service and the significance of this transition.

Termination events tend to invite a “get it over with” mentality.  They can be messy, uncomfortable, and require extra, thankless work.  They also become signature events in the life of the organization, and can be an opportunity to demonstrate ongoing commitment to corporate human concern.  Companies who earn the respect of their employees in the lean times tend to attract and retain the better talent as the business climate improves.

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