You Can’t Just Go Back to Business as Usual after Layoffs.
The news of 25% of REI headquarters staff being let go hit me hard. It’s a company I admire and worked at for 15 years. REI is a place that I connect to strongly because of its mission and purpose. More than that, it’s a place where I developed extremely close relationships that are still going strong to this day. When the news came out that REI would be ending employment for over 300 people at the corporate offices, it was like a punch in the gut. Out of all my close friends and colleagues, I knew that 1 out of 4 of them would lose their job, and they did. It was such a hard day for so many, and the co-op will never be the same. It can’t be.
Re-Building a Culture
It’s not just REI that is going through this right now. So many companies are going through reductions, furloughs and closures. Business has been lost; lives have been forever changed. So how do you begin to recover your organization? How do you help your people move forward? How do you re-engage your employees and customers after such a painful period?
1. Focus on Your Strategy. This should have been done before layoffs occurred. Getting crystal clear about how the work is changing is crucial. It helps with determining what areas of the organization are changing, what work is going away, and what new work is being created. This should be central to making layoff decisions. If an organization didn’t spend the time on this before impacting people’s jobs, they need to prioritize this quickly.
2. Stop Piling on Work. If you have just reduced jobs out of an organization, you need to ensure you have reduced work too. By piling more work up on those remaining employees, it will be a surefire way to disengage them immediately. Prioritize the most critical work. Let the non-essential work go.
3. Give Space to Recover from “Layoff Survivor’s Guilt.” Employees need time to process through what has just happened, the loss of relationships, and what might be around the corner. “Layoff Survivor’s Guilt” is a known psychological impact that happens after layoffs when remaining employees feel guilty, sad, remorseful, and scared that they will be next. There are long term effects including increased voluntary turnover. Employees won’t feel as much trust and loyalty to a company after layoffs. You can start to re-engage with employees by making it okay to talk about feelings - the sadness, guilt, and loss. Acknowledge and accept productivity losses during a time like this. We all need to be given some grace and space right now.
4. Rebuild with Empathy & Compassion. Remaining employees will grieve the “old company.” Companies cannot return to the previous way it was. Instead, it is time to rebuild gradually, knowing that the people and culture have changed. Listen. Listen. Listen. Ask the employees for help and leverage them for ideas around rebuilding. Your most loyal customers may also have insights, as they want you to survive and they are pulling for you. Pay attention to what people are saying in social media and what customer comments you may be receiving.
5. Tell the Truth. If you have the answers, share what you know. If you don’t, then say so. While uncertainty is very difficult to bear, one of the hallmark signs of mature leadership is telling the truth when it is not easy. Employees are more likely to stand with you when you are out there leading, being honest, and allowing yourself to be vulnerable in the midst of the uncertainty.
6. Continue to Focus on your Mission and Purpose. This is your north star. This is why you exist and why employees and customers resonate with your brand. Ensure the leadership team is using the mission and purpose to align people and be clear on the new path forward.
7. Instill Hope and Optimism. As a leader, it’s hard to balance transparency with vulnerability. You may be wondering if your company can get through this. You may be scared yourself. But leaders need to show some level of hope and optimism. Saying “we will get through this” is a much different statement that “we hope we can get through this.” Employees need to believe in the path forward. Be realistic but be hopeful.
We have all seen amazing and beautiful journeys of hope and connection out of the COVID-19 crisis. I continue to be amazed by the creativity and positivity coming from healthcare workers. The frontline workers are keeping our world together right now. Take note of this and tap into your employees to help. Unlock the good that so many people are wanting to create in the world right now, and let it soak in. You will have begun the hard work of re-building your culture.
If you need help with reorganizing or rebuilding, reach out and let’s chat.
Also, some former colleagues of mine at 71 & Change just launched an online assessment and some great leadership tools to help navigate through these turbulent times. The assessment just takes a few minutes and then you will have instant access to a Leadership Action Plan and Support Materials.
It’s time to create a new path forward. It will be hard, but we must lean into the messiness.
Sara Volta