Consistent, Open Communication Crucial During Layoffs, According to Watson Wyatt

Leaders can keep employees engaged and productive during layoffs by consistently and openly communicating with their workforce before, during and after the announcements are made, according to experts at Watson Wyatt, a leading global consulting firm. A Watson Wyatt survey conducted in February 2009 found that 52 percent of companies had already made layoffs, and another 13 percent expect to do so in the next 12 months.

ìThe pace of layoffs may be slowing from the staggering highs of the last few months, but until the worst of this economic crisis is behind us, there will certainly be more to come,î said Kathryn Yates, global director of communication consulting at Watson Wyatt. ìWhile employers continue to make difficult cost-cutting decisions, they can still take important steps to keep remaining workers engaged and productive on the job.î

To help in this effort, experts at Watson Wyatt suggest critical communication elements for leaders to keep in mind before, during and after layoffs:

Before

Prepare leaders early. While leaders should initially deliver key messages about business conditions and actions, itís important for frontline managers to personalize and reinforce them. A Watson Wyatt survey conducted in December 2008 found that nearly all messages related to the current environment are delivered centrally. Of those, 91 percent are delivered by leadership and only half (56 percent) by frontline managers.

ìAs they work closely with employees on the ground, frontline managers play a key role in making it easier for employees to understand and accept key business decisions,î said Pam Rollins, divisional practice leader of communication consulting at Watson Wyatt. ìEmployers can help managers become more effective communicators by providing appropriate talking points, tools and training.î

During

Clearly communicate the rationale for layoffs, and donít shy away from tough questions. Transparency is critical to maintaining trust. Employees leaving the organization will want to know what support the company will provide them and hear that their service has been valued, while employees remaining will want to know whether their own jobs are secure. Ensuring that messages to both terminated and remaining employees are consistent with the rationale for those layoff decisions will go a long way toward preserving leadershipís credibility.

ìEmployers will not have answers to many tough questions during a restructuring,î said Rollins. ìHowever, they can share information about how the decisions were made, give details about when more might be known and reinforce these messages on an ongoing basis.î

After

Engage remaining employees by communicating a vision for the future. Highly engaged employees are more resilient during times of change and will drive performance in critical times.

Employers can help remaining employees stay engaged during a restructuring effort by delivering messages about the organizationís long-term vision, clarifying how the employees can contribute to it and setting up realistic expectations for sharing information and available support going forward.

ìKeeping an eye on the corporate vision will help employers and employees alike navigate through these tough times,î said Yates. ìIf workers can be reassured that their company has a strategy for growth, and that they play a part in that strategy, they will worry less about the future.î