Cyber-fired? The Wrong (RadioShack®)
Way vs. the Right (Respectful) Way to Handle Employee Lay-offs
In a troubled
economy, it’s no surprise that so many companies turn to downsizing to stay
solvent. What is surprising is the callous way some employers go about it.
RadioShack is a notorious case in point. In early August, the electronics
retailer held meetings to inform its employees that they would be sending
layoff notifications via email—
yes, e-mail—in the
coming weeks. In late August, the company carried through with its plans and
informed 400 of its employees, via e-mail, that they were being laid off. Ruth
Haag, author of Hiring and Firing: Book Three, says this faux pas
is not only an object lesson in what not to do, it’s a stark indicator
that employers have lost sight of the importance of respect . . . and
consequences are sure to be far worse than bad PR.
“While quick
and expedient on the part of management, letting someone go in such a
disrespectful way is destructive to morale and worker loyalty,” says Haag. “No
wonder so many managers complain that employees show no respect and dedication
to their jobs. Perhaps they’re reflecting what’s shown to them! Respect is a
two-way street.”
It is bad enough to be
laid off, adds Haag, but being told by an impersonal e-mail message worsens
the situation. It makes employees feel that they were never important to the
company.
What’s more,
being cyber-fired also will have a negative effect on the employees who
aren’t being let go.
“First of all,
the remaining workforce will be spending an inordinate amount of time talking
about the layoffs, rather than working,” says Haag. “And as they will fear
that they could meet the same fate, your best employees will begin looking for
new jobs. To top it all off, the e-mail layoff method will most likely lead to
trouble attracting dedicated workers in the future. What promising candidate
will want to work for a company that treats its employees so inconsiderately?”
Laying off
employees will always seem like a lose-lose situation, of course. But if done
with a great amount of compassion and respect flowing from the employer to the
employee, Haag says a company can avoid permanent damage to its reputation.
“When you must downsize, notify the entire company that financial problems
exist and ask if there are any people who would like to a) volunteer for lay
off, b) reduce their hours, or c) retire early,” suggests Haag.
“Often, there
are enough people who fit these categories that a large-scale involuntary
layoff becomes unnecessary. This is a simple, yet very effective way to make
the staff aware of the problem and invite them to be a part of the solution.”
But if you let employees know about financial difficulties, won’t your best
workers become worried and leave? That’s highly unlikely, says Haag. The good
employees will want to do what they can to help the company survive if
management has built a loyal following.
The bottom
line? If you follow RadioShack’s lead and lay off employees the wrong way,
you’ll end up hurting your bottom line rather than salvaging it. Besides,
treating people with respect is the right thing to do, says Haag. “Some
managers and CEOs forget that behind the numbers on the spreadsheet are
workers with families to support and bills to pay,” says Haag.
“Employees
should be treated with respect at all times, and especially when you’re
delivering the kind of news that affects their financial and emotional
wellbeing. “Companies should always cultivate strong relationships with their
employees, even when times are good,” she adds. “Then, if a layoff is
imminent, managers will want to meet with their employees face-to-face to
explain the situation in person and show them the respect and compassion that
they deserve. It will just be a natural way to interact. And who knows? The
culture you create may make the whole layoff issue a moot point.”
Ruth
Haag was assigned her first supervisory position over 20 years ago,
and she quickly began to have problems. Trained as a scientist, she began to
analyze what was going wrong, and developed a management system that worked
for her. But, as she trained other supervisors, she found that her personal
system didn’t work for everyone. With further study, she discovered that
supervisors fall into three personality categories. Haag now trains
supervisors to identify their personal types of shortcomings and tame them,
while creating management systems that focus on their employees rather than
themselves.
She is the
CEO/CFO of Haag Environmental Company and the author of several books,
including a four-book series of supervisory management books, Taming Your
Inner Supervisor: Book One;
Day to Day Supervising:
Book Two;
Hiring and Firing: Book Three – available through bookstores nationwide,
from major online booksellers or directly from the publisher’s Website,
www.haagpress.com – and Why Projects Fail: Book 4. Haag is
currently
working on Book 5.
