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Warren Buffett once said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” He may not have been talking about layoffs specifically, but the sentiment still applies.
Layoffs can damage an employer’s reputation, Neil Costa, founder and CEO of recruitment marketing agency HireClix, told HR Brew, making it harder for HR to recruit and retain employees.
When layoffs abound, with no signs of slowing down—employers, including Apple, Ericsson, and Chrysler parent Stellantis, cut 90,309 jobs in March, up 7% from February and the most since January 2023, according to Challenger, Gray & Christmas—HR pros navigating them should aim to prioritize clear, concise communication, and provide support to terminated employees, Costa said. Doing so, he added, can help safeguard an employer’s brand.
Talk about it. According to the University of Pittsburgh School of Law, HR should share as much information as possible, especially about the reasoning for the cuts. By being straightforward, HR can help eliminate confusion, as well as misinformation.
Offer support. HR should also provide laid-off employees resources that can make their transition less overwhelming, Costa said. Outplacement services, for example, can help laid-off workers draft résumés, network, and prepare for interviews, HR Brew previously reported. HR should aim to keep the lines of communication open with laid-off employees to remind them of the resources at their disposal.
“Layoffs are going to happen, it’s not like we can avoid them,” Costa said. “So [make] sure that the communication is straight, open, and honest.”
Don’t forget about those who remain. HR should prioritize open, honest communication with remaining employees, too, Costa said, sharing what they should expect to happen next.
“Employees want to know if something else is coming,” Costa said. “There is a level of confidence that they want to hear like, ‘Look, we made this cut deep enough so we’re not going to have to do it again.’”
The last thing employees want to hear after a layoff is, “We’ll see how next quarter goes,” Costa said. “That’s pretty unnerving.” The same goes for potential employees, he said, because they won’t want to join an organization if it’s risky.
“Layoff and reorganizations are always challenging, despite being part of the natural cycle of business in general,” Costa said via email. “HR professionals need to be the stewards of open, transparent, and empathetic communication from top management to employees who remain.”