Yesterday I received an e-mail from an employee in our company that really got me thinking. Her e-mail was about one of the less talked about effects of tough economic times. Her note contemplated how layoffs, or even the hint of layoffs, can cause a company to lose the employees it most desperately wants to retain. Here’s an excerpt from her e-mail:
“My husband’s company is facing layoffs as well. As we talked about it last night, he went down a small list of people he would choose to cut if the opportunity presented itself. The problem is, he has workers who are invaluable. Some of them work very closely with competitors. He’s concerned that if cuts are made, his strong workers — the ones that pull the load of two men — will be recruited away or become nervous and jump ship, leaving him with not enough workers.”
How does a company struggling to keep its head above water and facing layoffs keep its best workers while losing the rest? It’s a great question and a significant dilemma for employers.
There are no guarantees that employees won’t jump ship when they learn of an impending layoff, but there are ways you can help prevent an exodus of top talent. Here are three ways you can help to protect your company’s greatest assets:
- Communicate, communicate, communicate. Let everyone know what the plan is. It goes a long way in retaining the employees you really want. Communicating a plan with specific details will help employees understand what your intentions are.
If you believe that no further layoffs are necessary, say so. While you can never promise that more cuts won’t come if the situation worsens, you can explain clearly what the plan is and why you believe it will work. And if you know what situations would cause additional layoffs, tell employees what those scenarios are so that they won’t be surprised if and when it happens. Just be honest in your communication. Remember, if you lose your employees’ trust, you’ve lost them.
- Not all employees are created equal. There, I said it. Some employees are better, smarter, more productive, or more valuable than others. It’s just the way it is. So if you have strong workers that you want to protect, tell them that they are valued and that you will do everything in your power to protect their jobs. Again, don’t make promises you can’t keep, but if it’s in your power to choose who goes and who stays — and you want employees to stay — tell them.
Reminding someone of their importance, especially when times are tough, is a smart thing to do. Meeting individually with the top performers you want to keep is a ‘must-do’ in this situation. If you’ve developed a relationship based on trust with your employees, then looking them in the eye and telling them what you’ll do to try to keep them will be incredibly effective.
- Provide a vision for the future. Someone told me the other day, “Hope is not a strategy.” I agree with that but I do believe hope is a critical element when times are tough. If you can provide the employees who you really want to retain with hope for the future, they’ll be more likely to stick with you through the tough times. If the company has new ventures it’s working on that will lead it back to prosperity, explain that to your key workers and be as specific as possible.
If, as a result of layoffs, an employee will be presented with greater opportunities when the company recovers, tell him. A smaller workforce can provide opportunities for advancement or new responsibilities that the person otherwise wouldn’t have received. It’s not a bad thing to let employees know it — as long as it’s true.
The common denominator in all of this is honesty. It really is the best policy. Explain the plan honestly. Be upfront about how important employees are to the company’s future with the ones you really want to keep . And give those that are most important to the future of the business hope for a better tomorrow.
I won’t say that protecting your company’s greatest assets when you’re experiencing layoffs is as easy as 1-2-3, but these three simple steps will greatly enhance your chance of retaining your top employees. Make sure your best people stick around to lead your company back to prosperity!