When Anxiety Over Layoffs Won’t Lay Off

Well, that was misleading.  Yesterday, the AP ran a story with the headline “New jobless claims drop slightly to 623,000” that seemed to indicate (somewhat) good news. (Sure, it’s a small drop – to what remains an unnerving number – but a drop nonetheless, and these days I’ll take what I can get in terms of hopeful signs.)  In actuality, however, while the number showed an initial drop in jobless benefit claims from an upwardly revised figure of 631,000 the previous week, it was still above analysts’ expectations of 610,000 claims.  Thus, a more accurate headline might’ve been “Jobless claims suck only slightly more than first anticipated.”

Thanks for trying to get one past us, AP, but we all know that the jobless numbers suck. And as much as companies may be trying to delay, avoid or figure out the right way to implement layoffs, it doesn’t seem to stop them from happening. Like death, taxes and celebrity photo scandals – layoffs seem to be certainties in today’s economic climate.

And they don’t just hurt those who are leaving: Leadership IQ recently found that layoffs negatively impact employee morale, productivity, customer service and quality of work – not to mention employees’ view of management and their confidence in the future of the business. (Something to be wary of, considering passive job seekers aren’t necessarily scared off by the weakened economy.)

Paul Facella, CEO of Inside Management, attributes this effect largely to emotional stress. Employees are likely feeling “survivor’s guilt,” resentment toward either their managers or the company, and fear that they’re next. But there are ways to temper these feelings if, as Fistful of Talent’s Jessica Lee asserts, you properly communicate to your workforce before, during and after this time. 

BNET offers some great ideas for restoring morale after layoffs, but companies could also benefit greatly by incorporating outside help to assist not only those who stay behind, but those who are leaving as well.  That’s what law firm Womble Carlyle Sandridge & Rice did last year when it had to lay off 45 support staff in its 11 offices along the East Coast.  The firm brought in a local outplacement firm to offer support and counseling to both departing and surviving employees.

Not only can workers benefit from outplacement services (such as CareerBuilder’s recently launched CB Transitions), but employers can also use them to address potential issues such as unemployment costs and maintaining their employment brand. These companies provide resources to help other companies maintain their business in tough situations while also helping displaced workers as they look for their next job.

What about you? Have you had to impose layoffs? And if so, how have you been helping your employees cope?

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• Posted by: Mary Lorenz on February 13, 2009
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• Categories: Employee Engagement, Employee Retention