Layoffs are an inevitable part of business cycles, often resulting from economic downturns, company restructuring or strategic pivots. For HR leaders, the responsibility of managing layoffs with empathy and efficiency can be challenging. It's no wonder HR and people leaders often get layoffs wrong.
Research shows that layoffs frequently have detrimental, long-term impacts on departing employees, retained staff and the organization itself. Exiting workers face potential psychological trauma, retained employees may experience lower morale and engagement, and the organization must contend with numerous-and sometimes hidden-risks.
HR and people leaders often overlook and underestimate the costs of layoffs. These costs typically include lowered employee engagement, reduced innovation, higher turnover, a tarnished reputation and lost institutional knowledge. As Harvard Business School professor Sandra Sucher explains, it can take years for companies to bounce back from such transitions.
This is where a best-in-class outplacement partner can be vital. Outplacement firms specialize in helping transitioning employees find new job opportunities while providing critical support to HR leaders throughout the layoff process. With outplacement services, HR and people leaders can better assess and avoid risks while successfully navigating their people and organization through challenging times.
In conclusion, navigating layoffs is one of the most challenging tasks an HR and people leader can face. However, partnering with an outplacement firm can provide the support and expertise needed to manage the process effectively. From personalized outplacement services for affected employees to ensuring legal compliance and maintaining morale, outplacement partners offer a holistic solution that benefits both the organization and its employees. By leveraging the services of an outplacement firm, HR and people leaders can navigate layoffs with confidence, compassion and efficiency, ultimately leading to a smoother transition and a stronger organization.