Layoffs: When Corporations Show Their True Colors
“When people show you who they are, believe them the first time” — Maya Angelou
Rarely am I at a loss for words, but I’ve truly marveled at the behavior I’ve seen in the corporate world over the last year. There’s no need to name names for us to recall the surprising choices corporations have made as they’ve exited employees, be that a single individual or thousands of colleagues. Blanket email notifications, little to no notification periods, blocking systems and building access — all while reporting solid profits and forecasting recessions that still haven’t materialized. What makes this so perplexing is the striking reversal from the pandemic-era rhetoric about work becoming human-centered.
Every corporation has the right to exercise its judgment to secure the well-being of the firm for all its stakeholders. However, exercising judgment and making sound decisions should not be confused with abuse of power. The social science research on power reveals that the cognition of those with clear power can be “corrupted” in two significant ways. First, powerful individuals believe they are “right” and have diminished interest in the perspectives of others. They become less inclusive …and why shouldn’t they be? After all, they are “right.” Second, their attention to risk can decline significantly. Again, why be overly attentive to risk when you know you’re “right?” After all, the likelihood of making a miscalculation is slim.
Sadly, many of the organizations and CEOs who leaned into employee experience early in the pandemic seem to now be turning a deaf ear. A part of me was so optimistic during the first six months of the pandemic. The walls between our professional and personal lives had fallen, and corporations seemed to embrace the needed humanity that had long been missing in the workplace. Concern for the “whole person” was a given, and discussions about mental health had become normalized.
During 2021, record productivity and profits were achieved across many industries. Employees (and organizations) became agile out of necessity as we all learned new ways to work. The transformation was so profound that corporations began feeling a shift in the power structure, with employees expressing preferences, and in some cases, demands they had never expressed before. Today we find ourselves in uncharted waters with the labor market, as it’s unclear where the power actually resides. One pattern is clear — the commitment to employee experience is on the decline, and practitioners (and employees) absolutely feel it.
Cards on the Table Time
One could argue the most telling action that can be taken is the severance of the working relationship — be that an involuntary layoff or a voluntary resignation. In full transparency, I’ve been on both sides of this unappetizing table, as I’ve been the sender and the receiver of the dreaded “You no longer have a job” message. Over the next few months, I will be writing a series of articles about how organizations (and people managers) can demonstrate effective and compassionate leadership when exiting colleagues, even in the face of troubling business performance.
McKinsey’s recent report, The State of Organizations 2023, describes 10 macro trends that are transforming organizations.
The company surveyed >2500 global business leaders to understand post-pandemic shifts in areas such as workforce expectations and the acceleration of AI. One of the top trends identified for transformation was the need for leaders to become more self-aware and inspiring. However, in stark contrast …
"Only 25% of respondents said their organizational leaders are engaging, passionate and inspiring."
Learning Opportunities
Be it personal instinct, lived experience or academic research, there is broad alignment that the actions of leaders are the single greatest influence on organizational culture. How layoffs are communicated, managed and experienced conveys a clear image of organizational culture, not to mention the self-awareness of leaders.
To better understand how to manage layoffs in a way that honors individuals and uplifts cultures, I’ll explore three fundamental human needs with the help of some brilliant behavioral scientists. At the risk of sounding like a fan — I’ve learned so much from Josh, Jamil and Paul. I’ll do my best to apply their insights to the world of work and specifically, layoffs.
- Autonomy with Dr. Josh Davis, Mentora
- Empathy with Dr. Jamil Zaki, Stanford University
- Trust with Dr. Paul Zak, Claremont Graduate University
Related Article: Google Is the Latest Reminder We Need to Rethink Layoffs
Why Should We Care?
One of the core principles of employee experience is that our “experience” is not only shaped by what happens to us directly, but also indirectly by what happens to those around us. Do not be fooled that layoffs only impact those who were exited. Think of the impressions they made on those who remain behind — the people creating your products and services, leading your employees, managing your systems and processes, making decisions and engaging with your customers. These people are the ones who observed how the organization treated those who were laid off — and they can easily imagine the same events happening to them.
Stay tuned for more to insights. And to end where we started …
“When people show you who they are, believe them the first time” — Maya Angelou
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About the Author
Mary Slaughter is a global human capital executive, consultant, executive coach and published author. She has held enterprise roles including CHRO, Chief Talent Officer, Chief Learning Officer, Chief Diversity & Inclusion Officer, Head of Employee Experience & Communications, as well as Managing Director in large consulting firms.
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