Do you know what to say when it's time to lay people off? The first time I had to lay someone off, I had no idea what to say. However, if you have a reasonable context, you (or HR and you) can create a script you can use to make a layoff a respectful and relatively kind experience. With a congruent conversation, you might even be able to maintain a healthy collegial relationship with the person you have to lay off.
First, let's discuss the context.
Assess the Corporate Context
I've been a manager in several layoffs. I also got laid off three times.
I didn't like any of those circumstances.
However, I understood all of them, because the company was clearly losing money. The managers had already tightened the operating expenses, such as eliminating coffee in the break rooms. In addition, the managers had taken pay cuts. (I also took a pay cut when I had to lay people off.)
Everyone could tell our financial situation was challenging the company. While people weren't happy about the layoffs, they understood them.
Then there are times when I don't understand the layoff actions.
For example:
- Several organizations laid off people to game the price of their stock. They hired most—but not all—of those people back as contractors. In the US, the company no longer pays health insurance, matches retirement funds, or offers any of the other typical perks of working for a company. Most of those contractors did not negotiate a better hourly rate for themselves.
- Then there are the companies that do across-the-board layoffs and give managers raises. They often say, “We must do more with less.” (What a crock.)
- Worse, when companies have record sales and cut bonuses or salaries for regular people, but keep the money in place for the senior leaders.
The supposed leaders violate their integrity when they act like this.
If your leaders' actions violate your personal integrity, you don't have to do the layoff. You can demand the leader tells people.
Assuming you are still the manager who will do the laying off, here's how I approach it.
What to Say When You Need to Lay a Person Off
First, check with your HR department. HR exists to keep the company out of court, so make sure you only use their wording.
I use a script—not to read from, but to guide my discussion. The script grounds me and helps me manage my emotions.
- Explain you have bad news and share the context. “I have some bad news for you. We, as a company, are laying off x people today. You are one of them.”
- Most of the time, you can say how many people the company is laying off. For example, in Massachusetts, if a company lays off some percentage of the total workforce, the company has to make a public announcement of that fact. So the x is generally not a secret. This might be a state-by-state law, so as always, check your local laws.
- Do NOT apologize here, or say you are sorry. Those statements can open you to legal liability. It doesn't matter that you're speaking on behalf of the organization. You and your company are liable for your words. Sigh. Always check with your HR rep for what you can say.
- Tell people what they can expect.
- Are they leaving this minute, sometime today, or in several weeks? (If this minute, they might need to get their personal items from their desks, assuming they work in an office. If they can't clear out their desk now, make a date to do it at a reasonable time in the future. You will have to escort them in, watch them, and escort them out.)
- How will they get their salary to date and vacation or other owed pay? Is there severance? Clarify all money issues now.
- Return company equipment. This is where you need to ask for card keys, credit cards, computers, and phones. Make sure you have a list of this in advance, so you know what to ask for. If the person works remotely, send them an insured box where they can easily fill the box and send it back. (Or, you could just turn off their access to all corporate equipment and let them keep the equipment.) Your HR might want them to sign off that they returned everything to you.
- Turn off all electronic access to their user ids either at the time or before you have the conversation. Don't allow disgruntled people to make a mess of your servers, etc.
- Explain how they can have further discussions and with whom. For example, HR always needs to be available to answer questions about COBRA or retirement plans, etc. This is where you might explain how you will support them in their job search. (More on that below.)
You don't owe the person an apology or explanation. If they want that, refer the person to HR.
Are You Willing to Help the Person in Their Job Search?
If you had a good working relationship with this person, you might offer any of these:
- To be a referral for their next role.
- Write a recommendation on “paper” and/or on LinkedIn.
- To network with them, to introduce them to other hiring managers.
You might offer other support, but make sure you know what you are willing to offer.
If you're taking advantage of a layoff to fire an unjeller, don't offer anything. If the unjeller asks, you can say something like this: “That doesn't fit for me.” Or, “The company has prohibited me from offering you any support.”
I go with the lack of fit, because I want the flexibility to support other people in their search.
Talk to a Group or One-on-One?
Many years ago, and only once, I had to tell 30 people they were laid off. HR insisted I tell them in a group and then escort them out of the building. (The elevators didn't hold 30 people, so that was a ridiculous requirement for me.)
Instead, I did these things:
- Sent a scheduled email to the remaining people (survivors) at the same time as I spoke with the group.
- When I spoke with the group, I explained the facts. I also gave them a list of recruiters I found useful. Then, I gave them 15 minutes to pack up their desks and met them at the elevators. I had help from HR to escort them out.
With any luck, my actions told the survivors I would treat them humanely, too. The survivors were the ones to do the remaining work.
Layoff Traps and Tips
Trap: Don't lay people off on a Friday afternoon. One of my layoffs occurred at 4:30 on a Friday afternoon. I spent all the time I was supposed to clean out my desk calling recruiters and making dates to talk the next week.
Trap: Don't lay people off on a Monday morning, either. The survivors might do nothing but talk about the layoff all week.
Tip: Lay people off on a Wednesday or Thursday morning. That gives the laid-off time to start connecting and networking. It also gives the survivors time to mourn. And take the weekend as a break.
Respect, Kindness, and Congruence Go A Long Way
I tried to maintain my professional relationships with everyone I hired or laid off. While I am not known for my tact (!), I hope my management actions showed respect, a little kindness, and a whole lot of congruence.
I hope you never have to lay people off. If you do, use congruence, where you balance the self, other, and context for the best possible outcome.
The next post will be about how we might feel and how we might manage ourselves. (Yes, from the person who is more Spock-like than human. Oh well.)
The entire series:
- Have to Lay People Off? Practice Congruence and First Choose What Not to Do, Part 1
- How to Approach the Layoff Conversation with Respect and Congruence, Part 2
- Acknowledge Everyone's Emotions for a Congruent Layoff Conversation, Part 3
- Lay People Off with Congruence to Make Better Business Decisions, Part 4, Summary