How to Handle Layoffs by Turning Adversity into Unity

‍Turning adversity into unity: Why downsizing and layoffs can be a catalyst for team building

Let's just put the obvious out there first: Downsizing and layoffs suck across the board. Just the mention of one causes fear and uncertainty, but an actual execution can trouble morale for months and even years to come. This period is usually marked by both emotional and financial turmoil for both your laid-off employees and your remaining employees.

However, in the face of such challenges, there lies a hidden opportunity: the chance to rebuild and strengthen team dynamics. Although they're something organizations want to avoid, future layoffs can be a pivotal moment for team building and fostering a resilient and tight-knit culture that has, quite literally, gone through the high and low times together.

Here are 6 whys and hows:

1. Make communication a cornerstone 

Downsizing forces organizations to communicate more openly about the state of the company. When coupled with empathy & transparency, this can enhance trust within the remaining team. Managers and leaders who communicate honestly about the reasons and the future direction can help move aside rumors, reduce anxiety, and get the team on board toward a collective and productive future. 

Encourage managers to demonstrate their commitment to the team’s well-being. It might not be right away, because trust is something that takes time to build, but it can flourish in the face of adversity when handled with care.

HOW: Make sure that immediately after a layoff there is plenty of time dedicated to answering questions and having 1:1s. Ideally HR and direct managers should help check in with each individual in the organization. Leaders can empathize with their feelings, do check-ins, and should be responsible for communicating upwards any shift in energy (especially if there is no improvement).

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2. Create a common goal

You can foster a shared sense of purpose by rallying everyone around a common goal. Layoffs create a sense of urgency that encourages change and bonds the remaining team together. It’s a critical time to redefine the team’s goal and reinforce the mission. Galvanize team members and make them more cohesive, motivated, and productive towards achieving this collective vision.

HOW: Remind everyone of the company’s mission and reflect on company values, allowing employees to make space for changes that they feel need to be made. Recraft a north star if needed and ensure that each department's individual plans are all pointing back to that north star.

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3. Reassess & realign priorities 

A leaner team often means revisiting that long to-do list and making sure we’re all working on the right things. The ones that truly matter and bring the driving stick forward. Clarifying roles and responsibilities and ensuring that everyone understands what their contribution to achieving this success is crucial. It’s also an opportunity to revisit inefficiencies and streamline additional processes, hopefully leading to an increase in productivity.

Food for thought: You can add more tasks to someone’s plate, but it won’t change the amount of hours in a day. 

HOW: Spend lots of time with each department leader to ensure what the strategy is and the jobs to be done. Take an extra careful look at deciding what’s a priority and ensuring the reasonableness of what tasks each contributor can do. 

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4. Empower, enhance skills, cross-train

With fewer team members, there is often a need for people to take on additional responsibilities and develop new skills. This is a great opportunity for employees to grow, learn new roles, and gain a deeper understanding of the business. When coupled with hard work and loyalty, it often carves a new career path for promotion when the time and opportunity presents itself. Regardless, this cross-training can make the team more versatile and resilient.

HOW: Look to see where teams overlap and can collaborate. Take top-performing contributors and challenge them to learn a new arm of the business.

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5. Keep a growth mindset

No one likes losing, but teams that emerge from downsizing often become more resilient and adaptable. Learning to face challenges head-on and finding creative solutions to problems becomes a key attribution in a constantly evolving business landscape.

HOW: In meetings, leaders should be encouraged to share their opinions last and give opportunities for other folks around the table to speak first. Delegating unique projects and thought exercises to contributors who might have not been utilized in that way will often surprise and delight!

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6. Reinforce the value of each team member

‍With a smaller team and increased responsibilities, it’s important to celebrate the small wins and highlight the successes of people taking on these new roles and challenges (and crushing them). Usually with a smaller team these contributions are more noticeable and significant, and might even lead to an increase in job satisfaction because there is a higher sense of ownership amongst the team as they can better see the impact of their work on the company’s success. 

HOW: It’s important to utilize a tool like a ‘gratitude board’ or whatever format you have towards public acknowledgment to display the positive contributions of those team members.

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The Takeaway ❤️

While downsizing and layoffs are undoubtedly challenging for your former employees and current employees, they also present a unique opportunity to strengthen and rebuild teams in a more focused, resilient, and unified manner. By embracing transparency, fostering a shared sense of purpose, encouraging skill development, and empowering team members, organizations can transform a difficult situation into a positive force for growth and cohesion. 

The key lies in approaching this period with a mindset geared towards building a stronger, more adaptable, and more committed team. In doing so, organizations can not only survive but thrive in the face of adversity, turning what might seem like a setback into a launching pad for future success.

In times of difficulty, the way we respond can define our future. Let’s turn these challenging moments into a catalyst for building stronger, more resilient teams that are ready to face whatever comes next. 🌟