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Layoff Communication Advice and Tips

Should you use a “strategic leak” approach?

Last Thursday, I was honored to lead the Northeast Human Resources Association (NEHRA) Breakfast discussion regarding how to move an organization forward after a Reduction In Force (RIF). The audience was full of experienced HR professionals who openly shared their practices. One of the most interesting topics was that of pre-RIF communication strategy. Specifically, we discussed the strategy of the “strategic leak” about the RIF before a formal announcement was made. That is, actually planning the informal message (usually through conversation) that change is coming and that most likely, there would be a layoff. From an organizational development perspective, the organization is leveraging the informal communication or “water cooler talk/rumor mill” to facilitate the organization’s change agenda.

The idea is that by having leadership purposefully “leak” the information, it will give people a “heads up” and reduce the amount of potential emotional shock felt when the formal announcement is made. Participants had mixed thoughts on this because some folks had successfully experienced the implementation of this strategy and others thought that the concept was not honest or truthful.

In the presentation, I raised the importance and power of the trust between a company and its employees, and its impact on a company’s future employment brand/talent acquisition abilities. Participants agreed that the contract between the company and its employees is paramount during these uncertain times. We spoke about how companies are now, more than ever, cutting into their core capabilities with their need to reduce costs using RIFs. Positive employer-employee relations are critical for an organization that will need to rehire some of its “permanently virtual” knowledge/skill base in the near-term.

A key aspect of deploying the “strategic leak” is how long an organization is planning (or not planning) to let the “water cooler talk” froth with negative emotion. In some cases, the cultural temperature may already be too high to withstand an extended period of ambiguity. In fact, this dynamic can actually raise the level of change resistance to a point that increases the amount of change management attention needed prior to the actual occurrence of the RIF. At this point, productivity is so low that people can’t cope with the stress and desperately need concrete information to re-engage with their work.

Another aspect is the level of commitment that a company has to “walk the talk” with its values. Demonstrating honesty, integrity, and commitment to excellence in a troubling situation can be a powerful opportunity for an organization to build respect instead of losing connectivity with its employees.

The bottom line is that an organization must take the time to define its priorities and desired outcomes for the post-RIF work environment:

• What does the leadership of the organization want the post-RIF work environment to look like the first week after the announcement? First month? Third month?
• What do the leaders want the people impacted by the RIF to experience pre-, during, and post-RIF?
• Where are the communication opportunities to build trust with employees as the organization moves through a RIF?
• Which RIF strategies will absolutely not work for the organization’s current culture?
• How does the leadership want this situation to be remembered in the company’s lore?

Some of these questions may seem like a luxury given the angst that most leaders experience as they move into and out of a RIF, however, I recommend that you keep your choices open. Take the time to think through the questions above, even if it is only a brief time with all of the decision-makers in the room.

As far as organizational renewal goes, I used the presentation time to discuss specific practices and techniques available to help pull an organization forward into its new future. I would be happy to share this presentation and speak with you about how to build an Organizational Renewal and Revitalization Approach for your company.  Contact me at 617-267-6480 at any time.   You can also check out Reinvigorate Your Organization after a Reduction-In-Force at CanChange.

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