Opinion: How layoff culture is destroying tech companies

Tan KW

Publish date: Mon, 11 Mar 2024, 04:37 PM

You work a remote job at a well-known tech company. It’s Friday, and you’ve heard through the grapevine that two of your team members were just laid off.

You've also heard that they didn't receive an explanation for why they were let go. What is normally one of your easier days at work has become filled with anxiety.

On the one hand, you're baffled, because the team members were top performers. On the other hand, you're worried, because you're a top performer as well. What if you're next? You attempt to stay focused on your tasks, but instead, you open a search window to look for a new job with an abundance of caution.

This is not out of the ordinary, unfortunately. Because layoffs are being conducted ineffectively and with little consideration, the workers being let go are not the only ones affected. It has become the norm for employees to live in constant fear of losing their positions, a.k.a. layoff anxiety.

Layoff anxiety not only lessens an employee's motivation, productivity, and engagement, but it also cuts into a company's bottom line. In just the US, low engagement costs organisations around US$500bil every year.

The state of the workplace

The tech sector has been undergoing massive layoffs in recent years affecting hundreds of thousands of workers because of the rise of AI and the effects of the pandemic.

Most of the companies involved choose to conduct these layoffs via email or video call. If the worker is lucky enough to get an individual call, it's often with someone they've never met rather than their direct manager. But some have even reported that they found out when they couldn't access their work accounts rather than being told directly.

In all these instances, deeply personal news is being relayed in an impersonal way. Because the people doing the firing haven't worked with the employee, they also cannot provide specific reasoning or data to defend the company's decision. This further leads to frustration on the worker's end.

Employees feel blindsided because often managers don't provide regular feedback leading up to the event either. And over time, word gets out to employees still left at the company, leading them to feel layoff anxiety.

To make matters worse, laid-off employees have taken to TikTok to post their stories, causing a greater concern for the current state of tech companies.

The right approach

Although layoffs must happen, there are simple adjustments that can improve how you're informing your precious talent.

First, ask yourself this question as a leader: If you were fired from a position, how would you want to be informed of it? There is a stark contrast between delivering a personal message through an email, which is void of emotion and tone of voice, and delivering that same message through an in-person video or meeting where the person who has the relationship with the employee is the one letting them know.

Handling the tough conversations in person will always be the best method, but if that isn't possible, the next best option is to use individual video calls. Managers should always be the ones to lay off their workers directly. And I don't use the word always lightly or with any frequency. When hearing devastating news, the person wants to speak with a familiar face. An HR person can be on the call, but they should not be delivering the message.

Much of layoff anxiety also stems from a lack of explanation given to the individual being let go. Layoffs should not be a surprise. From the moment the employee begins working for you, they should be aware of their standing through honest, regular feedback. The more transparency you can provide to your employees regularly, the more engaged and connected your employees will feel.

Implementing a culture of feedback will not only boost productivity and profits, but also build trust that if an employee is let go, they will be provided with reasoning. And they will have known previously if they've been lacking.

- TNS

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