During Layoffs, Keeping Information Confidential Is Essential

Psst? Have you heard the one about the IT group being chopped next week?

Did you hear that I found a “RIF List” on the copier?

Rumors fly in the best of times. They become dangerous and hurtful during the worst of times. The unemployment rate in the U.S. is over 7 percent — and it’s climbing. Most economists agree that 2008 was just the warm-up to a really bad 2009, where unemployment could easily top 10 percent. Just ask around; it’s happening everywhere.

The important thing for HR is to keep information about layoffs confidential. I just heard a story about a company that sent out group- and company-wide memos about imminent layoffs. In the email, they split people out of groups that they’d naturally be in. Guess what? The people on the “extra” list are now filing out — they’ve been laid off. And smart people in the company knew who it would be just by parsing the lists. (Never underestimate the wisdom of crowds.)

Why would that have happened? Probably laziness on the part of a single person in HR who wanted to have separate lists for the “stays” and the “goes.” But that’s no excuse. Information has to be treated with extreme caution during these times. It’s never good to be sending people home, but it’s paramount to do it with dignity.

Here are a few communication tips for HR and managers dealing with layoffs:

1. Observe the golden rule. Would you like it if information about you leaked out? Didn’t think so.
2. No matter how much you know, resist the urge to “just tell one person.” You studied geometric progression in math, right?
3. Don’t print on public printers. If you’re in the business of printing lists of people who may stay and who may go, remove public printers from your choices for the duration. Print in your office. Don’t make a mistake.
4. Exit people with dignity. You know, this economic downturn isn’t going to last forever. Some day those people who are leaving will have new jobs. And, trust me, you will work with them again.
5. Take good care of the survivors. There’s more than just a little survivor guilt to go around when big layoffs happen. You need the people who are staying to be as productive and creative as they can be. It’s a process. Ignoring it won’t work.

RIFs have Started: Yahoo is First

Well, this is going to get all too familiar over the coming year. Yesterday, Yahoo led the way to RIFville with an announcement that they would be laying off 10% of their staff before year’s end. Sure, all the trouble isn’t from the recent stock market collapse, but that’s a big factor.

Jerry Yang’s letter to what he calls “yahoos” can be found here. He did an honest and credible job to tell the whole story. And he showed that the business cares about people…and about business. Here’s a snippet from Yang’s letter to employees, which was titled “update”:

affected employees will be notified of layoffs in the next several weeks. we understand that hearing this news now creates uncertainty, but we are moving ahead in a way that balances speed with a clear focus on accomplishing what is necessary to set the organization up for long term success. going forward it will continue to be important for us to make the right decisions to keep our business efficient and strong.

having layoffs is very difficult, particularly in light of all we’ve experienced this year. but we don’t take these decisions lightly, and are committed to treating affected employees fairly, offering severance and outplacement services.

the steps we are taking are not easy for us as a company, but as we become more fit as an organization, decision-making will be faster and it will be easier for us all to get more done and stay focused on our strategy. these changes will also prepare us to better deal with the macroeconomic downturn. as with previous downturns, yahoo! continues to be a place where consumers turn for information and communications, and is an integral part of their internet day. as the global economy improves in the future, i certainly believe that we will be stronger and benefit from the actions we are taking now.

Those Who Are About to Be RIF'd, We Salute You

[Photo credit: jnb24]

Normal is getting dressed in clothes that you buy for work and driving through traffic in a car that you are still paying for –in order to get to the job you need to pay for the clothes and the car, and the house you leave vacant all day so you can afford to live in it.
–Ellen Goodman

Yesterday, I went to a gathering of philanthropists where my wife is on the board of trustees. Guess what we talked about mostly? The economy. House prices. And people losing their jobs.

There are going to be a lot of people we know out of work in the next year. In HR, our job is to make that transition as smooth and dignified as it can be. We need to work extra hard for those those who are leaving and pay special attention to those left behind. After all, we still have a business to run.

I thought the Ellen Goodman quote was especially pointed in this difficult time. Sometimes people end up finding their bliss once all the mess is over. There’s something good to be said about that.

Time for Employees to Go Lewis & Clark

I was browsing someecards.com today (great way to waste an hour) and saw this card that I thought was perfect for the RIF Days ahead. Going Lewis & Clark is one way to not be there when the hammer drops.