The Empathetic Leader’s Guide to Layoffs

Regardless of which side of the table you sit on, no one likes layoffs. Yet even in the U.S., where unemployment is at a 53-year low,66000名工人in the tech sector have lost their jobs to date in 2023. You can’t make this a good situation, but you can be intentional about conducting layoffs in an empathetic manner that does the least harm possible to affected employees, those who are spared and the business. Here’s how.

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Downsizing can have long-term impacts to productivity and talent, so before you go in this direction, consider whether these seven alternatives are worth exploring:

1. Hiring freezes

2. Mandatory furloughs

3. Voluntary leaves of absence or reductions in working hours

4. Organizationwide pay cuts

5. Executive compensation reductions

6. Benefits cuts

7. Staff or job sharing

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Although HR is often present for layoffs, managers are almost always closer and more in tune with affected employees. Given the emotional aspect of the relationship between managers and their direct reports, it’s especially important to prepare individual managers for the three critical stages of the separation conversation: Preconversation, the conversation itself and postconversation.

Provide managers with information on how the layoff decision was made, what support (severance, COBRA, career coaching, etc.) the organization will provide, a script to follow and guidance on how to handle common employee reactions.

We are seeing recent tech layoffs impactheadcount within HR, where a large portion ofDEIprograms and dedicated resources live. And, unlike business-as-usual talent processes, layoff decisions are often made without rigor around or consideration of potential biases and impacts on DEI outcomes. “With highly publicized layoffs underway, it will undoubtedly create uncertainty for key initiatives intended to attract and hire diverse talent segments,” says Chandra Robinson, Director Analyst within the Gartner HR practice.

Use this as an opportunity to shift from collective to consequential accountability — that is to say, instill personal ownership and hold leaders accountable for DEI outcomes. Gartner researchshowsthat the organizations that make this change will save up to 13 years in reaching gender parity and up to six years in reaching racial parity on their leadership bench.

“Exhibiting authentic leadership throughout the layoff process is critical to building trust and eventually driving success,” says Dey.

This requires open, honest and empathetic communication. Take responsibility where it is your place to do so, and commit to meticulously executing plans, schedules and timelines. Undoubtedly, your team feels vulnerable. Considering this, every communication and action is vital to making the situation less painful.

“Providing employees with a real-time sense of what is happening in their organization and proactively addressing issues (internal or external) will not only allow you to move the narrative on your terms, but will also help build trust within your workforce,” says Patryck Allen, Senior Director, Advisory, at Gartner.

And remember, you can only anticipate and mitigate employee concerns when you actively listen to their feedback.

Our research shows that when employees don’t trust their employers, they are less likely to believe they are paid fairly. Given that layoffs also affect employee trust, this is the moment to put in place adedicated team within the total rewards functionthat is focused on these issues. In partnership with internal comms, they can educate employees about how pay is determined, equip managers to make equitable pay decisions and develop a pay equity team.

A 2022 Gartner survey showed that when organizations educate employees about how pay is determined, employee trust increases by 10% and pay equity perceptions increase by 11%.

Learn more:How Gartner Supports HR Leaders

Reductions in workforce also deeply affect those who are not laid off. The majority of remaining employees respond in at least one of three ways: Fear about their job stability, feelings of burnout, or a sense of detachment from their work and the organization at large. This is yet another area where giving visibility into the decision-making process is valuable — it ranks second only to open dialogue in maintaining trust during times of change.

Other actions to take include:

• Creating space for employees to express their anxieties.

• Regularly updating teams on evolving departmental priorities.

• Reminding employees how their work impacts the broader business.

• Rewarding strong performance.

• Identifying opportunities to build skills and networks within the organization.