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Addressing Employee Emotions is Key to Leading after Layoffs
More than 40,000 employees have been laid off by U.S. organizations between December, 2007 (the official start of our current recession) and June, 2009, in an attempt by companies to cut costs, improve profits, and shore up shareholder value. However, it is ironic that studies conducted over the past 20 years have repeatedly reported that layoffs do not usually produce those results. Instead, these studies have reported time and again that less than 50% of the companies using downsizing as a cost cutting and profit increasing measure actually achieve that objective; in fact approximately 25% actually realize a decline in their overall profitability.
Why don't layoffs produce the returns executives hope they will? It's the people factor. Employees are emotionally and psychologically traumatized by layoffs. At a time when it's critical for employees to be engaged and productive, they are demoralized, fearful, and distrustful. That doesn't add up to a recipe for business success.
I, along with my colleague, Deanna Banks, Ph.D., have researched over the past 6 months various techniques available to leaders to invigorate their employees after a downsizing has occurred. We found that certain types of leaders are more successful than others at enabling staff to recuperate from the damage that layoffs cause.
What Not to Do
As we interviewed employees from companies that had layoffs, we often heard stories of management teams that took action to stifle any expression of emotion. One company even forbade employees to "congregate" in hallways, offices, and coffee break areas. Rather than understanding and dealing with the outrage their people are feeling, some leaders simply want people to get over it, now. They say "Just accept it and move on."
The reality is that in high emotional situations such as a downsizing, people can't just bury it and move on. It is critical they are provided the liberty to share their concerns and work through the emotions they are feeling. If management attempts to rush the employees through this mourning process, the employees will become even more frustrated, angry and bitter.
What To Do
Disruptive change among all involved is the result of a layoff situation. However, people's response to such change follows a fairly predictable pattern according to most experts in the field.
You can't force your employees to move ahead in their cycle of healing faster than they are ready to. You may be over it and ready to move on, but until your employees are as well, you won't have a support system to help. Your job, rather than to push for progress sooner than they are able, is to help them progress at their own pace through the change process.
I found it interesting to learn that the best tactic a manager can take is to match his or her actions to the employee's emotions. However, this does not mean that the manager should respond to an employees emotion with the same emotion (e.g. resentment with resentment). Rather, the manager's goal is to distinguish the underlying need that the employee is communicating with their behavior, and do his best to meet that need, which will allow the employee to move on.
Our studies discovered that those leaders who are successful:
1. Minimize panic by communicating often.
2. Acknowledge anger with consideration and attention.
3. Answer anxiety by being clear and concise.
4. Minimize distress and sorrow by being supportive and open.
Emotionally supported employees are better able to put the downsizing aside and re-commit to their job duties. Rather than being cautious and suspicious, they will trust you for future direction. Rather than ending up stalled creatively, they will be more able to take control of their emotions and begin producing and taking necessary risks.
While there's no panacea for recovering from a layoff, how the layoff is approached, how employees who are let go are treated, and how the surviving workforce is supported go a long way to determining the organization's future success and viability.
About the Author Wendy Mack is a experienced advisor, mentor, and author focusing on leading and communicating change. Contact Wendy at, or get her free e-book, Transforming Anxiety into Energy at www.WendyMack.com.
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