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Compassionate Layoffs?

October 23rd, 2005

We tackle a tough topic in this week’s cast: Layoffs. We know it’s not an upbeat topic, but it’s highly likely you’re going to be involved in one at some point. Professional managers know how to conduct layoffs efficiently, with candor and compassion. While this is the first time we address the topic, this cast is second in order of the three we plan on the subject. One is on preparation- what you need to do in advance. This is for more senior managers, and those who will be in in discussions with HR. Today we address what everyone always asks us about - How to Actually Lay Someone Off. What do I say in the conversation? How do I say it? How can I deliver this news effectively and compassionately? The final cast is how to communicate to everyone after the fact. It’s an oft-ignored part of the process, but done well it can really help.

Despite our focus on performance at work, we want to state up front that we subscribe to the “soft” manager approach to layoffs. That means that even though you are dealing with THE TOUGHEST SUBJECT POSSIBLE, and the employee may respond with rage or frustration or tears, we think your profession requires you to be compassionate, caring and understanding. We believe these qualities make you a BETTER manager, and not just when you’re laying someone off. So, you may hear some suggestions today that aren’t standard. WE think they ought to be, but they’re not. One thing that will help you understand why we suggest these things is to read them from the point of view of the one being laid off.

We break our recommendations down into three sections: Before, During, and After.

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17 Responses to “Compassionate Layoffs?”

  1. Emad Georgy Says:

    First of all, let me commend you on a great show. I just picked up your podcasts and I’ve been listening to some of the archives. I have been a director of software development for several Fortune 100 firms over the years. I have a passion for leadership, specifically, leaders who are there to serve and develop their people. Did I say I LOVED your show? Keep it up.

    One comment, though. I thought the dual-series on the Art of Coaching was excellent. I was however disappointed in the second part of the series. You guys ran out of time and could not do more examples. I thought the restaurant example was powerful and I’d like to hear more. Coaching is something that I have realized I’ve been doing informally on the job over the years; and it is something that I am pursuing more formally today. I have a keen interest in it on behalf of myself and my team.

    Thanks again!
    -Emad (pronounced E-maud)

  2. mkinkopf Says:

    You mention a three part series on this subject but I only find one. We have just issued notices to staff and I need advice on the “after”. What do we do to communicate after-the-fact?

    Did I miss that podcast? Can you offer me some advice?

  3. Mark Horstman Says:

    MKinkopf-

    We had every intention of rolling out those shows, and have rearranged our delivery schedule. That said, I think our timeline is such that we will be releasing a cast in this vein in a couple of weeks. I hope that helps.

    If you could be more specific about your situation, I will do my best to help in the interim.

    Mark

  4. mkinkopf Says:

    Mark,
    I just recently tapped into your podcasts and love them. On my 16+ three flights home and back this summer I listened to the bulk of them with pleasure. You and Mike make a great team. The podcasts are easy to listen to and offer practical advice that works. Your passion for the subject is hard to hide. Thanks and keep it up! You’ve asked for more details so here it is:

    I work overseas with the government. Our funds have been cut. We have just released notices to almost half of our staff that they will be let go in September. Another round of lay-offs will take place next year. The staff is taking it well but as you might expect this is not a rosy place at the moment. What are the next steps to keeping peace and productivity. What do we say and do with the staff who is not being let go and how do we deal with all the emotional turmoil and disruption? Many of the employees who are being laid-off have unplugged. Can we address that? Should we bother? How do we keep the trust of the staff and keep a decent reputation in the community?

    I am the second in command here and responsible entirely for the successful implementation of this layoff. My boss and I have differing views on what to do now. He wants to close the door and move on–essentially stop talking about the layoff. We are both new at this. What is the right next step?

  5. Mark Horstman Says:

    DONT STOP TALKING ABOUT IT. Your boss is wrong.

    Be open about it. Schedule weekly updates if need be.

    And, I’ll post more on this this weekend.

    Mark

  6. mkinkopf Says:

    I couldn’t agree with you more! Now if you can help me convince my boss — who is a very reasonable man–we will succeed. I look forward to your advice.

    You’ve touched on this in several of your podcasts but I’m not sure I get it. Why are you giving away all this good advice? This must be a major imposition on your time. What do you get out of this? I’m anticipating that you’re getting us hooked so we’ll pay…dearly–like an addiction.

    Peggy

  7. Mark Horstman Says:

    Peggy-

    Second point for now. We’re giving it away because we want you to have it. Honest. Mike and I like helping people, and managers are so under-served, management is so under-taught and misunderstood, it just seems a shame that we know this stuff and don’t share it.

    We’re really not trying to get you hooked so you’ll pay. The casts will always be free. Sure, we believe this stuff has value, and we think charging for collateral will allow us to focus even more on it. We actually feel that with the right mix of value and subscribers, we’ll be able to make even MORE free to more people.

    We get out of this notes like yours. This is the world we want to live in. We have to eat, but we think if we serve others first, things will turn out well. At 15 bucks a month, we think we’ve made it so affordable folks will think of it as a donation to spread great management practices.

    We want to change the practice of management the world over.

    Maybe it won’t work… but we’d rather try and fail than just wish.

    Stay with us - oughta be fun!!

    Mark

  8. mkinkopf Says:

    I wouldn’t dream of NOT staying…I’m hooked and so are several of my friends and reports whom I’ve introduced to Manager-Tools…but I can’t help feeling like the cat who ate the canary!

    Still waiting on that third-in-the-series podcast…

  9. mkinkopf Says:

    Associated Press Headline

    RadioShack Fires 400 Employees by E-Mail

    RadioShack Corp. notified about 400 workers by e-mail that they were being dismissed immediately as part of planned job cuts…

    http://news.moneycentral.msn.com/provider/providerarticle.asp?Feed=AP&Date=20060830&ID=5983042

    Looks like Radio Shack can use your help too!

  10. Bilbo Says:

    I find an interesting article on this topic. Too hard ?

    http://www.pharmamanufacturing.com/articles/2006/180.html

  11. Mark Horstman Says:

    Bilbo-

    This is an example of what happens when a company has managers it can’t trust, and the managers themselves don’t know how.

    It’s nauseous.

    Mark

  12. Steve Says:

    Mike and Mark,

    I enjoy your podcasts. Please keep up the good work!

    I work for a “beltway bandit” here in DC. Recently one of our contracts was not renewed.

    I got the job of informing staff about this. While not fitting the model of the compasionate layoff exactly, I was able to use the podcast tips to give me an excellent framework for taking care of this business. The tips were very useful. The meetings went well.

    Thanks and I owe you one . . .

    Regards,
    Steve

  13. Mark Horstman Says:

    Steve-

    Glad we’re helping! That’s a tough mission to be given, and to do it well is a standard worth reaching for… and far too few do so. Well done!

    You owe us nothing! Just stick around and keep learning.

    Mark

  14. Jeff Meunier Says:

    Mark,

    Can’t find the “after” podcast in this series, did you guys ever get back to the topic?

    Thanks,
    Jeff

  15. olugbenga Says:

    Mark

    I have just listened to your podcast on compassionate layoffs. it was very insightful and as usual very accessible.
    We have just completed a round of layoffs in my organisation and I reckon from your podcast we have much to learn.
    Can you kindly direct me to the after podcast so that I can try and limit the emotional damage that poor execution has caused.
    Many thanks

    Olu

  16. Mark Horstman Says:

    Folks-

    Sorry, that cast is in the queue, and we will do our best.

    Mark

  17. jolesen Says:

    Hi,

    Anyone found out where the two other shows are?

    Thank

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