How you handle layoffs will affect your brand reputation and future hiring.
Yesterday, I was invited to join WPLN-Nashville Public Radio to discuss the state of Twitter; I included a video in this post if youโd like to listen.
One thing we touched on but didnโt dig into is whatโs happening at Twitter with Elon Muskโs haphazard and harsh management style. He has triggered an exodus of Twitterโs top talent due to laying off half of the company's 7,500 full-time employees. In addition to those let go, Fortune has reported that about 1,200 Twitter employees have quit (so far).
People leave managers, not companies.
As author and business consultant Marcus Buckingham famously said, "People leave managers, not companies." Why would anyone want to continue working for an abusive leader? If youโre fearful of suddenly also being on the chopping block, it makes sense to look for a more grounded leader and secure job.
This isnโt just happening at Twitter; Meta has laid off 13% of its workforce. Zillow has laid off 5%, Peloton 12%, and the list continues. Iโm not taking a side on the decision to lay off staff at any company. Layoffs, unfortunately, happen due to financial concerns regarding the business itself and the economy.
The bigger problem for the company due to such layoffs is turnover contagion caused by poor communication and workplace fear.
There is a right way to lay off people, not burn bridges, and help them get back on their feet quickly. Even Twitter has backpedaled and asked some employees to return - good luck with that.
The Golden Rule is at the core of the #nicemethod: treat people how you want to be treated. Your company's reputation will affect your future hiring and employee retention. Over 90% of people read reviews before buying products; you can bet they use sites like @Glassdoor, @Indeed.com, and @Blind to research company reputations before applying.
If you must do layoffs, I recommend the following.
Offer extended health insurance and benefits in the severance.
Provide an exit package bonus to help financially.
Provide a LinkedIn profile audit to departing employees to help them look their best to recruiters as they search for their next position. I included a link in the comments for more on this.
Connect with the exiting team members on LinkedIn to offer them introductions to people in your network.
Hire a freelance recruiter to provide them with career guidance.
Write a LinkedIn recommendation for each team member and encourage their immediate managers to do the same.
Have you ever been laid off? What's something you learned from the experience?