Layoffs, Leadership and Emotions: The Trifecta of Discomfort

Being the social scientist that I am, I was drawn to do some research on the human side of layoffs. I found a statement which said, “…dismissing 1% of your work force evokes a 31% increase in turnover.” I just threw that out on social media. It was from a credible source, so I just threw it out there. Several people asked questions (Ellen and Kelly), prompting me to dig further. Here is some context from the article and some additional change management thought process.

The article, by Wendy Mack and Deanna Banks, spoke to leaders about managing the process of ensuring that the work force is appropriated properly on their bottom line. These leaders must make very unpopular decisions. They most likely don’t feel good about the selection process, or about facing those people, in the process of turning them out onto the streets. But nobody thinks about them, do they? Well, not managing the human side of being a leader carries a hidden cost. As the process of laying off employees starts, discussions held behind closed doors become secretive. That is where the article says things go terribly wrong. The secretive nature of the meetings may or may not be public knowledge, but it can cause the energy or vibe in the office to change, and people react to that inherently. Leaders don’t want to alarm people so they say nothing – or worse, they may not be truthful. Employees find this unsettling. They feel unappreciated and certainly not part of the team. Unfortunately when the truth come s forward the trust is broken.  This is a lot of energy directed in places other than work.

Layoffs are often executed with very little processing time. One minute, someone is called into an office and the next minute, they’re escorted out of the building. The co-workers with whom they have relationships they’ve cultivated daily, possibly for years and sometimes for longer than their marriages, are left standing, wondering what happened. They are also wondering what’s next for them. This is not an environment of safety. It’s one that evokes the basic reaction of fight or flight, which Walter Canon described as a very human response to fear.

Now in the work place, it’s not politically appropriate to fight. Nor is the timing any better when you’re in danger of losing your job. ‘Just deal with it quietly,’ that’s the implicit message when a leader swoops in, fires someone, then goes back into their own office and closes the door. The remaining employees are left grieving the loss on many levels; for those relationships, the illusion of security, the understanding of their job duties, the environment of safety, and their value to the organization and team. They are asked to manage their emotions without showing them, plus get additional work done. Naturally, internal productivity goes down and so does customer service.

In addition to worrying about those who’ve been discarded, remaining employees may also believe they are next. The only sure way to check their value is by leaving.  People react with fear. Leaders who are especially adept at human interaction will save many of those relationships and, just as importantly, all the tacit knowledge and skills that are in those employees. These are leaders who minimize the “survivor’s sickness” of which Wendy and Deanna speak in their article. They also minimize turnover.

The quick version of their recommendations for how to ease the people side of layoffs all stems around grieving and continuing to communicate through the process. The hot new idea (it’s about time!) is ‘transparency’. That’s just clear communication and allowing people to know what’s going on so they can contribute.

• Senior leaders must be more available and visible.
• Communicate openly internally, as if the employees are part of the team. Don’t just parrot the crafted verbiage which investors want to hear.
• Allow time to process: both the trusted employee being laid off and the remaining employees are left to pick up the pieces of their loss.
• Know that your employees are watching how you treat those who are leaving.
• Appreciate the additional workload for those employees remaining.
• Again, realize that your employees have relationships with those who’ve been impacted.

Now what? As a leader you’re wondering, what should you do? Build in support for those in the positions to execute the layoffs. Expect a period of time that will really show the impact of the changes that have been made. As a leader, you have the same emotions, but you have additional responsibilities to the company and to the employees. Open your door and listen. You will hear the ‘state of the state’ and be able to minimize negative impacts. People need to be heard. The article describes emotions that are likely to appear: Shock, anger, fear, anxiety, hopelessness and sadness. These aren’t stages that all people go through, but some will feel them. Listen for signs that people are getting stuck in these emotions.

Sheila Simon, a Minneapolis Spiritual Grief and Business Consultant, suggests a simple set of questions from Dr. John Schneider to help people move through their grief. This is not easy, but it is simple. Ask, “What is lost?” Then ask, “What is left?” And when you’ve moved through those questions and the group is ready, ask, “What is possible?” When you get to what is possible, the sparks will really fly, bringing in new life and new ideas. If you’re uncomfortable holding those conversations, hire a trained facilitator or coach to hold conversations and get the emotion out of the corners and into the room, where you can honor and face it.

Communication through change is essential for smooth transitions. Managing people can be messy, and so is change. But ‘business as usual’ isn’t going to work anymore.

Resources:
Mack, W. & Banks, Ph.D., D (2009) Leading after Layoffs: Best Practices for Re-Energizing Your Workforce, wendymack.com , retrieved 10/21/09 from http://wendymack.com/resource-center/layoffs-anxiety-energy-ebooks-wendy-mack.html.
Bridges, W. (1988). Transitions: Making sense of life’s changes. Reading, MA: Addison-Wesley Publishing Company.
Bridges, W. (1991). Managing Transitions: Making the most of change.  Reading, MA: Addison-Wesley Publishing Company.
Schneider, Ph.D., J. (1989, 11/03/09). The Transformative Power of Grief. Noetic.org Retieved 11/03/09, from .http://www.noetic.org/publications/review/issue12/r12_Schneider.html.

Motivational Idea for Week 35

Motivation is even more important today than a week ago.  Actually, not really more important, but just as important as it was a week ago.  It’s Sunday night, the Packer’s are beating the Bears  so all is right with the world.  Now I am starting to think about my week ahead.  I promised that I would put new motivational ideas here weekly.  Since I couldn’t get it posted on Friday I thought I would add this before the next week started.

Week 35
Start a book club – a business book club.  Put it on the calendar and put it into the work day.  They may (like there’s even a chance) not get time to read during the day.  But talking about the content of the book during the day makes sense as it’s a strong component of leadership development.  The employees build their library, you build your people, you gain a cohesively formed team, and they build internal relationships and grow their resources especially if the club is cross departmental.   Select the list of top business books including a selection of team building, communication skills, presentation skills, change management, innovation or biographies.  When they come to consensus on the books they are using team skills and self forming groups with emergent leadership.  It’ll bring out useful skills in other situations.

Start with one of my great take-aways from grad school which is a book on how to read a book in 30 minutes.   I thought this was an optional book.  But it was THE single best book I bought, EVER!   The book is by Mortimer Adler and it’s called How to Read a Book: The Classic Guide to Intelligent Reading. This book will save you and your people hours of time wading through the pulp of a great book.  They will read more if they can get through the books faster.  So will you.

If your team is dispersed bring them in via teleconference.   The program would be especially effective with a sales team who is separated by distance around the country.

Establish some ground rules or let them form their own group and rules.  Here are sample ground rules:
1.    Get a core group of people to start it.
2.    Establish a regular schedule.
3.    Advertise the program.
4.    Create a simple list of questions to create a dialogue on the book; over all reaction, biggest take away, any surprises, any inconsistencies, anything we can implement, how?
5.    Ask for stand in facilitators to each volunteer to manage a meeting.
6.    Start with a list of books to schedule.
7.    Give it twelve months with a few months off during vacation season or the tough season for your business.

Trust that you employees will be responsible and fulfill their commitment to the group.  They will have to contribute or be noticeably a slacker.  Regardless of how much they read they will get the gist of the book and the benefits of reading the book by attending the meeting or reading part of the book.

I would love to hear how this idea works in your office.

Yelling at the office, really?

I was asked yesterday about problems my clients talk about.  I replied, “yelling in the office.”  But they asked so what’s the problem?  Hmmm… well isn’t that obvious?  They want them to stop yelling.   That’s not really the problem.  They aren’t talking to each other.  But they talk all the time.  So wha’t the problem?  really want them to talk to each other.  So what’s the problem?  We don’t know…but one thing we do know is that people need to engage others in the solution earlier in the process.  Get up from your desk and go talk to the person.  Yes, easier said than done.  What’s to stop you from talking to the person?  Is it your emotions?  Is it managing those emotions?  Is it how the person will act?  Or is it possilbly how you will react to them reacting?

Stop drop and roll….  when you’re in an emotional situation use this saying.  Stop – and take a deep breath.  Drop- your defenses.  Roll – with the conversation.  Stay open to what happens.  When you find yourself yelling or in the face of someone yelling STOP, DROP and ROLL….