Compassionate Layoffs: Tools and Tips for HR Directors to Support Employees

Navigating layoffs is one of the most challenging responsibilities for HR leaders. Striking the right balance between transparency and compassion ensures employees feel valued and supported. 

Massella Dukuly, head of workplace strategy and innovation at Charter, offers valuable insights into handling layoffs with empathy and high emotional intelligence (EQ).

The Human Effect of Layoffs

Layoffs are more than just a financial decision; they profoundly affect employees emotionally and psychologically. 

Dukuly emphasizes the importance of recognizing this human element. “We spend most of our lives working, and if workplaces don’t support us, it affects not only our professional lives but our personal lives too,” she says in a recent episode of America Back to Work. 

This perspective underscores the need for HR leaders to approach layoffs with empathy and care.

Building Meaningful Partnerships

Effective layoff management starts long before the actual event. Building strong relationships with key stakeholders, including CEOs and CFOs, is essential. 

Dukuly suggests that HR leaders work closely with these stakeholders to ensure a holistic approach to layoffs. This collaboration helps make informed decisions that consider the company’s financial health and the well-being of its employees.

Avoiding the Pitfalls of Poor Communication

Communication during layoffs can make or break the process. One common mistake is providing ambiguous or premature information about potential layoffs. “Announcing potential layoffs months in advance creates unnecessary anxiety and can lead to decreased productivity,” Dukuly warns. 

Instead, she advocates for clear, concise, and timely communication that respects employees’ need for certainty and security.

The Power of Authentic Messaging

Authenticity in communication is vital. Employees can easily sense when messaging is insincere or rehearsed. Dukuly advises leaders to acknowledge the challenges honestly and take accountability where appropriate. “People want to hear that you have a part in this. It builds trust and shows that you are transparent about the company’s situation,” she explains. 

This approach helps in maintaining trust and credibility, even in difficult times.

Offering Generosity Within Constraints

While financial constraints often necessitate layoffs, there are ways to show generosity and compassion within these limits. Providing extended healthcare benefits or offering outplacement services are examples of how companies can support their employees.

“Even small gestures, like timing layoffs to extend health benefits, can make a big difference,” says Dukuly. 

These actions demonstrate a commitment to the well-being of departing employees.

Addressing Survivor Guilt

Layoffs affect both those who leave and those who remain. Survivor guilt is a common phenomenon in which remaining employees feel guilty about retaining their jobs while their colleagues are let go. 

To address this, HR leaders should focus on transparent communication and support. Dukuly suggests creating spaces for employees to process their emotions and providing clear information about how workloads and responsibilities will be adjusted post-layoff.

Practical Tips for HR Leaders

1. Plan Thoroughly: Detailed planning is essential for smooth execution. Ensure all logistical aspects are covered, from severance packages to communication strategies.
2. Train Managers: Managers play a crucial role in the layoff process. Provide them with the training to handle these conversations empathetically and professionally.
3. Follow-Up Support: Post-layoff support is crucial for both departing and remaining employees. Offer counseling services and check-ins to help employees navigate this transition.

Anecdotal Insights

Dukuly shares an anecdote from a company that handled layoffs exceptionally well. The company provided a generous severance package, extended healthcare benefits, and personalized outplacement services. They also organized a town hall meeting where the CEO addressed employees’ concerns and took responsibility for the company’s situation. 

This approach softened the layoffs’ blow and reinforced the company’s commitment to its employees.

Building a Compassionate Layoff Strategy

Developing a compassionate layoff strategy involves several key components. First, it requires understanding the company’s financial situation and the necessity of layoffs. Second, it demands a focus on the human aspect, ensuring employees are treated with dignity and respect. Third, it involves clear and authentic communication that keeps employees informed and supported throughout the process.

The Role of Emotional Intelligence

High EQ is critical in managing layoffs. HR leaders with high EQ can better understand and manage their emotions and those of their employees. 

Dukuly highlights the importance of empathy in this process, stating, “Empathy allows leaders to connect with their employees on a human level, making difficult conversations more manageable and less distressing.”

Balancing Transparency and Compassion

Balancing transparency and compassion during layoffs is not just about following best practices; it’s about genuinely caring for your employees and ensuring they feel supported during challenging times. 

HR leaders can navigate layoffs with grace and humanity by building strong partnerships, communicating authentically, offering generosity within constraints, and addressing the emotional effect on all employees. 

As Dukuly aptly puts it, “When people feel cared for, they show up, they do better work, they’re innovative, and they’re thoughtful.”

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