Lisa Stefanik, an expert in interpersonal dynamics at Chicago Booth, shares valuable insights on the often uncomfortable subject of layoffs. She discusses how to communicate layoffs more humanely and consider the emotional impacts on both affected employees and remaining staff. Stefanik emphasizes the importance of compassionate messaging, strategies for managing these conversations with empathy, and utilizing professional networks post-layoff. She also highlights how to embrace layoffs as potential opportunities for growth.
Direct communication from managers during layoffs fosters understanding and kindness, reducing miscommunication and frustration among affected employees.
Handling layoffs with care and clear communication is essential to maintaining company culture and trust, ultimately improving employee morale and productivity.
Deep dives
The Importance of Direct Communication
Laid-off employees benefit from receiving news directly from their managers, as this approach fosters kindness and understanding in difficult conversations. Avoiding this directness often leads to miscommunication, poor planning, and feelings of frustration among those affected. The emotional impact of layoffs can be managed better if communication acknowledges the humanity behind the roles being affected. Thus, conducting layoffs as transactions disregards the personal connections and feelings involved, often leaving employees feeling alienated.
Consequences of Poor Layoff Practices
When companies mishandle layoffs, they face significant repercussions including cultural erosion and loss of trust, which can diminish overall productivity and increase turnover rates. For instance, the impersonal nature of layoffs at companies like Twitter resulted in widespread distrust among remaining employees. Successful layoffs should not just focus on the immediate decisions but should consider the emotional and psychological effects on those who remain with the company. The approach adopted by leadership during layoffs greatly influences the overall company culture and employee morale.
Effective Communication Strategies
Utilizing a framework that includes the languages of care, meaning, and action during layoffs can lead to a more respectful and supportive experience. The language of care addresses the emotional impact, the language of meaning explains the underlying reasons for the layoffs, and the language of action outlines what to expect moving forward. For instance, during Airbnb's layoffs, CEO Brian Chesky's direct communication included all three linguistic components to create a supportive environment for affected employees. This comprehensive approach improves the chances of a constructive dialogue around such difficult situations.
Supporting Employees Post-Layoff
Organizations need to prioritize emotional support for both laid-off employees and those who remain after layoffs occur. Survivor guilt is a significant issue for remaining employees, and addressing their feelings through open discussions is crucial for morale and productivity. Implementing regular check-ins and encouraging teams to process the changes allows for better coping mechanisms. Positive communication helps stabilize the workplace culture and re-establish trust, which is necessary for recovery after layoffs.
A conversation in which one person informs another that they’re being laid off is never welcome. But trying to avoid it can lead to poor planning, unclear messaging, anger and frustration. Is there a way to do it better? Chicago Booth’s Lisa Stefanac, an expert in interpersonal dynamics, talks about what’s at stake, how to prepare, and what to do if you find out that you are the person being laid off.
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