Don't get stuck in the layoff loop
I recently had the pleasure of engaging in a candid conversation with the insightful Chason Forehand, Founder of HR-4U Inc. on my podcast, Nuggets with Sauce. Together, we explored various facets of leadership, with a focus on the challenges and implications of layoffs in the business world.
Before delving into our discussion, we set the tone by prioritizing the importance of passion and purpose in shaping one's identity in the workplace. Chason has such a genuine enthusiasm for leaving a legacy of change, emphasizing actionable steps and the responsibility of driving positive transformations - qualities I very much admire and appreciate.
To kickstart our conversation, Chason recommended two insightful books: "The Daily Second Chance" by Dustin Dale and "Top-Down Culture: Revolutionary Leadership to Drive Results" by Lindsay Dowd. These capture the essence of fostering a positive workplace culture and driving meaningful change within organizations - both of which are tied to avoiding costly layoffs in the long run! I know I'll be checking both of them out.
Nugget #1: Inequality in Compensation
We first delved into the pervasive issue of income inequality within companies. We both challenge the conventional wisdom of CEO and C-suite salaries significantly surpassing those of average workers and question the fairness and ethics of these "accepted" disparities. Chason also noted the disconnect between job availability and decision-making delays (why is it taking SO long to hire people, when we have so many people unemployed and WANTING to work??), leading to disengagement and employee dissatisfaction. And yes, truly, people DO want to work these days - they just don't want to work in places that treat them poorly, including with compensation inequalities.
Nugget #2: Handling Layoffs Responsibly
We also discussed challenges associated with layoffs. Chason addressed the lack of foresight in some companies, emphasizing responsible leadership that considers the well-being of employees and the community. He's an advocate for internal reflection, sacrifice from the top echelon, and a collective approach to navigating tough times ("we're all in this together" goes a lot further than "screw you, I'm saving myself!"). If you as the leader are unwilling to make some sacrifices for the greater good of your people, then why do you expect sacrifices from your employees for your benefit?
Nugget #3: Rehiring After Layoffs
We touched on the aftermath of layoffs, especially the tendency of companies to try to rehire previously laid-off employees. Seriously? You just cut them out, and now you want them back? Chason rightly pointed out how damaging this move can be on employee morale and trust. Drawing parallels to customer retention, he emphasized the cost-effectiveness of retaining valuable staff, your best ambassadors who form the core of your company - it's cheaper and easier to keep happy customers, and it's cheaper and easier to keep great employees too.
The Workplace Engagement Crisis
We touched upon the global engagement crisis, where there's a critical link between engagement and productivity. Smart leaders actively engage with their teams, especially during challenging times, fostering a positive workplace culture that promotes a two-way street of communication. When you engage your people in problem-solving (including getting ahead of any curves that could lead to layoffs, now or future) you are tapping into your most valuable resources and are more likely to come up with solutions and ideas that reduce financial and performance risks.
Final Thoughts
In the end, Chason and I both believe strongly in the need for leaders to proactively engage with their teams, plan for contingencies, and prioritize transparent communication. The overarching theme in so many of the conversations we've had is the responsibility of leaders to create a work environment that values its people and prioritizes their well-being. This is a winning move for business success!