What happened to the word “people” in HR?
Getting fired is never easy, but it’s worse when handled in a clumsy or insensitive way. In a nasty trend, brands are now delivering bad news via Zoom, email, text or blog posts.
Global organizations such as Shopify, Coinbase, P&O, and Robinhood despite adopting these clinical practices risk psychological responses and reputational damage.
Also, they forgot the first golden rule of layoffs – maintain employee dignity.
While the rationale for layoffs may be plausible, the goal of implementing a stopgap is understandable, the problem is with the process. Communication styles conflict with compassionate leadership and decency. At its core is lazy leadership — and it’s wrong.
With the heightened conscience of today’s society, few businesses can withstand such a severe insensitivity. More importantly, there are three underappreciated business and behavioral consequences of mass shootings
1. contagion effect.
As examples grow, businesses may find it acceptable to zoom in and normalize behavior. The more media coverage, the faster the idea. Like an ad or a political slogan, the more you hear it, the more positive you will feel about it — not negative. Psychologists call this the mere exposure effect.
As a small business, be vigilant when you observe bad people-related practices in large corporations.
Don’t follow the trend even if it seems tempting. I’ve seen many companies think they’ve gotten rid of the adverse effects of bad behavior, but there’s always a price to pay.
2. psychological reaction.
Euphemisms abound, such as “phase out,” “early retire,” or consider options. It boils down to the same thing. Thanks to The Apprentice, the phrase “you’re fired” became part of TV folklore, but it sparked deep humiliation and shame. While losing a job in a difficult market may not come as a surprise, it’s still shocking.
As a reputation consultant, behavioral scientist, and board advisor, I find that leaders who decide these policies often lack emotional intelligence. Like divorce, it’s hard to resonate with a situation until it knocks on your door. During my three-year career, when layoffs occurred, I usually received a hollow self-protection script to read to stunned employees. It was a tragic experience for both parties.
Don’t underestimate its impact. A study of displaced Swedish workers found an increased risk of death after losing their jobs. Men had a 44% increased risk of death for four years, with suicide rates doubling for both men and women.
3. Reputational Risk
Businesses do not value reputational damage from impersonal communication strategies that merely indicate a short-term transactional culture. A P&O executive is defiant. “No words can make it better.” While true, you can soften the blow. Robinhood’s CEO at least acknowledged his role, “As CEO, the responsibility rests with me.”
Laid-off employees often discuss their layoff experiences and compare them to colleagues, customers, and suppliers . This is the default response. Companies may think NDAs can protect them, but human nature in distress cares little about legal boundaries. Exiting the experience stays in the memory for a long time. It was a defining moment in life and a significant brand impact.
In the pursuit of redundant efficiency, founders or business owners can mitigate their reputational risk in a number of ways. They can do what entrepreneurs do best – make the experience personal.
Leaders should simply handle layoffs the old-fashioned way, face to face.
This is also a
better way
PricewaterhouseCoopers (PwC) recently surveyed 722 U.S. leaders and found that half plan to cut jobs. Given this trajectory, my advice to businesses considering clinical redundancy strategies boils down to three words: don’t do it.
Smooth transition.
Future-ready employees is an easy, cost-neutral but overlooked reputation builder. Many companies recommend reemployment services that perform helpful coaching instructions.
Perform simple kindness.
The managers who lost their positions or downsized their teams when I advised executives were the ones who showed empathy. They let them walk out the door without their belongings in a black plastic bag. After that, they regularly called the fired employee to check in. They help with psychological transformation.
Discourage lingering criticism.
One of the easiest actions any leader can take is to maintain respect for departing employees. I’ve always found that when someone leaves, they get blamed for previous misconduct. This damages their reputation when they need it most.
Think long term.
Consider your professional reputation, impact on culture, and act independently if necessary Suggest.
Research finds that people who succeed after layoffs look at the situation with no shame, use their networks actively, and start a new chapter quickly. Dignity trumps efficiency when it comes to ending any relationship.
If it’s your turn, I hope the compassion conveyed by the corporate message reflects a people-centred organization and your contribution to it.
