March 26, 2009

Manage terminations with respect, discretion

“Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day. You can’t expect your employees to exceed the expectations of your customers if you don’t exceed the employees’ expectations of management.” – Howard Schultz, CEO/Chairman, Starbucks

Let’s be honest: Doing layoffs may be the hardest part of running a company. It’s never pleasant and it actually brings to mind the old saying, “That’s like putting perfume on a pig.” The information being delivered is just not pretty, no matter how we dress it and hand it off to employees.

However, there is an art to doing layoffs in a way that stays grounded in company values as well as keeps in mind the employee’s need for respect and dignity.

SPONSORED CONTENT

Solar Operations and Maintenance for Commercial Properties

One key qualification to consider when selecting a solar partner to install your system is whether they have an Operations and Maintenance (O&M) or service department. Since solar is a long-term asset with an expected lifecycle of 30 plus years, ongoing O&M should be considered up front. A trusted O&M partner will maximize your system’s energy output and therefor the return on your investment.

In previous articles, I’ve explored how everything you do reflects on your company; you are the brand that you are trying to sell. Sadly, many companies forget this when it comes to that dreaded day when people are let go in order to reorganize a business and cut costs.

Just as poor behavior toward customers would be extremely bad public relations, the manner in which an employee is let go could be equally if not more damaging to the message brought out into the community. Not only do we need to think of how we actually ask someone to leave, we also must be conscious of what they will take from the experience emotionally and in terms of information.

Most of us know someone who has lost a job, and in the current economic climate, it most likely has to do with bottom-line figures. Employees are often the biggest expense a company has, and not just in terms of payroll. Costs associated with hiring, training, retaining and offering benefits inflate personnel expenses quickly.

If you need to reorganize your team and run leaner, think about how you are going to do the layoff before launching into attack mode. Because layoffs are unpleasant for anyone to deal with, it’s human nature to want to make the process “quick and painless.” This attitude, however, translates to employees as being forgotten, unimportant and truly expendable – and that is exactly what they will relay to the public once they leave you.

If an employee has been dedicated, hard-working and diligent in promoting you, your products and services, he or she deserves more than a cardboard box and a pink slip on the day of departure.

Communicate bad news with sensitivity

Do you need to throw a party for displaced employees? No. However, choosing a person who is a great communicator, sensitive to others’ needs, and good at easing pain to deliver the news is a much better choice than someone the employee doesn’t know or who lacks decorum in the delivery of difficult information. Tailoring conversations to suit an individual’s particular communication style goes a long way in ensuring that they feel heard in the process.

Additionally, respecting privacy is essential; many companies make the mistake of doing “department layoffs” and therefore informing a group of people all at once that they will be leaving the company. This is humiliating and unnerving to most people; they want to feel like an individual, even if they are one of many.

Disclosure regarding impending layoffs also requires special attention; many candidates I have met over the years have been informed of their termination, only to find out that their entire department or staff was aware of their situation long before they were informed. This is a dangerous avenue to go down and one that quickly undermines trust and respect in your company. Only the key players who are directly responsible for the employee or the actual layoff need to be aware that the situation is developing and what day it will come to fruition. Nothing feels worse than being blindsided.

Many organizations require that a security guard or team accompany displaced employees as they leave the premises on layoff day. This is appropriate when there is intellectual and/or physical property to be protected. Unfortunately, if this is not put into play correctly, employees can end up feeling like a criminal, despite their performance.

Having a written document that explains how the situation will unfold in the event there are layoffs, one that is reviewed with the employee upon hire, tells everyone up front what to expect. This does not have to go into extensive detail, however, it should relay how security and property will be addressed.

Communicating every step of the way in terms of wins and losses paints a clear picture as to where the company is financially. Being proactive goes a long way, and when your people feel informed and included, they can help you make sound decisions that benefit the organization and the team. Now is not the time to be evasive.

When dealing with people, it’s critical to remember that everyone has a life outside of work – family, responsibilities and aspirations. Allowing people on your team to know what to expect helps them to deal more effectively if there is a downturn in the business and tough decisions about staff numbers have to be made.

In the time of turmoil, stop to remember all of the contributions people have made to your company and to your success. As an entrepreneur, it’s essential that we never lose sight of our goals, but also who helped get us to where we are.

In the end, it’s people who matter most.

Dawn Duncan is the co-owner of Broadreach Recruiting & Consulting, a Fort Collins-based firm. Contact her at 970-221-3511 or www.broadreachrecruiting.com

“Our mission statement about treating people with respect and dignity is not just words but a creed we live by every day. You can’t expect your employees to exceed the expectations of your customers if you don’t exceed the employees’ expectations of management.” – Howard Schultz, CEO/Chairman, Starbucks

Let’s be honest: Doing layoffs may be the hardest part of running a company. It’s never pleasant and it actually brings to mind the old saying, “That’s like putting perfume on a pig.” The information being delivered is just not pretty, no matter how we dress it and hand it off to employees.…

Categories:
Sign up for BizWest Daily Alerts