8 Mistakes Companies Make During Layoffs
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I read this article by Forbes magazine on the subject of delivering bad news and realized just how many companies fail to follow the steps outlined when they lay people off. I honestly believe the majority of corporations and management teams don’t mean to do this incorrectly—they just haven’t been trained in what it takes to effectively communicate what’s happening. The result is an angry, vocal group of ex-staff members and a concerned set of clients who wonder if they should look for a new vendor.
Here are the most common mistakes companies make during layoffs:
1. Blindside Staff
I once worked at a start-up company that, unbeknown to the staff, was running out of funds. So, one day we walked in and saw at 10:00 a.m. a large group of people got up from their desks and went to the cafeteria for a meeting. The other large group got up and went to the conference room. Each had been sent an email on where to go. When they got to their respective meetings, the cafeteria group was told they were all being let go and to get their things, head home, and the company would be in touch with final pay. The other group was held hostage in the conference room and told they had to stay there until the layoff was complete. Needless to say, the fallout from that experience was significant.
2. Delaying The Inevitable
BigstockI’m working with a woman right now whose company announced a layoff five months ago after they were bought out and merged with a larger firm. Absolutely nothing has happened since. She says the staff morale is at an all-time low. People feel paralyzed. They don’t want to look for a new job if they don’t have to, but they also don’t want to walk in one day and find out it’s over. Productivity is down and stress-related illness is up from the fear of the unknown.
3. Covering Up The Truth
BigstockI have a friend who worked for a larger privately held company. One day he walked in and learned the company was “cutting expenses” and laid off 20% of the staff. At the time he thought he was lucky because he kept his job. A month later, news came out that the owner of the company was going through a messy divorce due to cheating on his wife and had been using company funds to support his mistress. The layoffs were a way to save money so he could pay himself more to cover the alimony payments while still maintaining his current lifestyle. My friend found a new job, along with several of his colleagues who couldn’t stomach working for the owner after that.
4. No Justifiable Explanation
BigstockSome companies announce layoffs due to “a decline in sales” only to show an increase in earnings for shareholders in the same quarter. This sends a very confusing message to the world. You are making more money, so you are laying people off?
The best companies are clear as to why they are laying off—even if the reason is unpopular. If you feel appeasing shareholders is more important than keeping people employed, then say so. You might catch a lot of heat for your choice, but at least you won’t look like a liar.
5. No Support For Those Affected
BigstockNow that so many companies have conducted layoffs, it appears that HR departments and management teams have decided to scale back what they spend on outplacement programs (a.k.a. career coaching for those affected by the layoff). And, while their lack of effort to help those who have been working for them usually doesn’t make the national news, it does spread like wildfire through the social community.
Today, layoff victims have a large platform for tarnishing the reputation of a former employer who throws them out on the street without help: social media. Companies shouldn’t underestimate the negative impact failing to give proper resources to layoff victims will have on their reputation.
6. Not Addressing All Parties Involved
BigstockSome companies don’t feel they have to explain their reasons for laying off staff to anyone but those affected. What they forget is that anyone involved with their company is affected! For example, employees that don’t get let go have to deal with survivor’s guilt. It’s not as if they won’t ever see or hear from their former colleagues ever again. So, what should they do? And, no matter how hard you try to hide it, customers will hear about the layoffs. Would you rather they hear about it from a disgruntled ex-employee, or from you personally?
In a time when transparency in business is being demanded, companies cannot afford to ignore their communication responsibilities to all parties involved. Otherwise, you can expect to lose the trust of the very people you need on your side to see through these challenging times for your business.
7. Fail To Provide Progress Reports
BigstockAfter the deed is done and the employees are let go, many companies try to rush back to “business as usual.” Well, that doesn’t work. Why? Because the layoff fundamentally changed your business so there is no going back to the way it was.
Instead, companies should offer weekly progress reports to show those who are still with the company the ongoing efforts they are making to ensure the decision to lay off workers will in the long run be the right thing for both the business and them. You don’t stop the communications until you reach the point where you can show proof of success (i.e. stopped losing money, stabilized budget, etc.). At which point, you announce the new game plan to get the company back to its former glory.
8. Not Treating People With Respect After They Are Let Go
BigstockThis is by far the most important. I’m amazed at how many companies let people go and then try their hardest to distance themselves from them. Example: A company I know laid off 2,000 people recently. Not only did they not give them any outplacement services, but they also decided they would not allow anyone at the company to be a reference for those who were let go. As a result, the 2,000 workers had no way to give potential employers a reference to prove they were part of an RIF (reduction in workforce).
The company stated that given the size of the layoff, employers would know about it and wouldn’t need references. Well, anyone in HR knows that these days references are very important. The company even went so far as to tell the employees who remained that if they got caught giving a reference, they would be fired. The 2,000 workers were forced to give an automated telephone line where it would verify pay and dates of employment as the reference instead. This created a lot of challenges for those workers who had been with the company for many years since they honestly had no live references they could provide during their job search.
Sharing This Article Will Help Future Layoff Victims!
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I hope managers who are reading this article tuck it away so they can use it as a guide if the day comes when they need to conduct a layoff. I also hope anyone who has been affected by a layoff passes it along to their management team. Given how little training there is in conducting effective layoffs, we need to get corporate leadership up to speed on the right way to handle such a difficult situation. History shows that companies that manage the delivery of bad news and the need for change effectively are the ones that survive. So, the more senior management teams who read this and opt to follow the guidelines, the better, right? Do your part to educate your leadership team—send them a link to this article today!
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Check out Work It Daily's outplacement services today! My team and I are looking forward to working with you soon.
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Blog How To Improve Team Dynamics Debra ShannonJuly 20, 2022
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A majority of the team is working remotely, but are they still working together like a well-oiled machine? Is the team a cohesive and dynamic group supporting operations and completing projects? If not, you (especially as a leader) should stop and figure out why. You should talk with the team and may need to think of solutions that are more outside of the box.
Cultivating A Powerful Team
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Taking the quote “there’s no 'I' in team” to the next level, remember that each team member is different and brings something to the table. You should leverage the strengths and balance them with the weaknesses (like yin and yang). Even basic differences such as team member work schedule preferences can even be capitalized on. For example, some individuals might like to come in early while others prefer to work late. If certain business units work outside the typical hours of 9-5 p.m., the team could readily be available for an extended window to better accommodate the business’ varied work schedules.
If the team hasn’t been collaborating as much as they could have, no time like the present to change that. Initially, some team members may feel out of their comfort zone, but they’ll start to get into a groove the more they work together.
At the core, the team needs to respect, trust, and care for each other. Team members need to have meaningful conversations and feel safe expressing their opinions to the rest of the team. During brainstorming sessions, there will be valuable perspectives that others may not have initially considered. The team’s rapport and camaraderie can make working through those difficult time-consuming problems more manageable.
If a new member joins the team, take that extra effort to assimilate and make them feel welcome into the team. Or if someone seems a bit distracted or aloof, ask them how they are doing, or if they need anything. Maybe they’re feeling a bit burned out or not challenged. When someone is out sick or on PTO for two weeks, the rest of the team willingly pitches in to cover their workload. Because nobody wants to work when they’re not feeling well and recuperating. If any of these things happened to you, wouldn’t you feel fortunate to be part of a team that is so supportive of you?
Final Thoughts
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You (as the leader) need to create a positive environment conducive to the team, provide the tools that the team needs to succeed, and advocate for the team! I believe that the team will be stronger together, and in the end, the team will grow and be successful together.
For more information on cultivating a powerful team, follow me on LinkedIn!
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So, following up on my previous articles, let us discuss how to organize data governance (DG) for business impact. Yes, emphasis on business impact. Powered and enabled by technology but calibrated based on business use cases of data and the expected ROI. Leverage your data strategy and data management framework and assessment of your data governance maturity to architect the organization.
Data governance is managing data as a strategic asset for business impact… We can't stress this point enough.
So, What Is The Role Of The Head Of Data Governance?
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The HO of data governance is a strategic business and data leader who can ensure alignment between the architecture and business intelligence teams and the business. Said different, the HO of data governance is not solely a hands-on role; it has a blend of hands-on knowledge of technology and a deep understanding of data analytics but all for the aim of serving as a strategic business interface to maximize the use, access, and acquisition of data for competitive business advantage. The HO of DG is a strategic business leader and has to be able to serve as a unicorn between technology and the business, framing the business problem into data analytics and technology solutions that move the business forward. So while topics like technical metadata, the configuration of tools, file formats, and setting up the data catalog are essential, they aren't the starting point of the DG leader.
The business usage of data should come first in terms of managing data as a strategic asset. The HO of data governance understands the use cases and how to put CDEs through lineage. The role is not only about setting up the data catalog and file formats for big data but also ensuring the correct data is a gold standard based on business needs and use cases warranting its inclusion in the catalog. It is a strategic and hands-on role but has its implementation teams to make DG a reality. The HO of data governance is responsible for uplifting the maturity levels of data management and the overall function, including the technology as an enabler.
Further, the HO of data governance is a leader that is the steward of the data management framework and ensures that data is uplifted across the lifecycle. I do not distinguish much between the data governance leader, the chief data officer, and the data management leader. These are variations on the same theme, and they are creating much confusion by separating all of these. Also, when the head of the data platform or data warehouse reports to the HO data governance/CDO/data management, it is a maturity multiplier as changes can be made to the data warehouse, and metadata can be more closely aligned between producers and consumers.
We have sub-optimized data governance by making it about the technology and thinking that architecture, engineering, or technology is the primary driving force behind treating data as a strategic asset. These essential functions should be plugged in and reported into the CDO/HO of data governance. The business side of what we govern should be given slightly more criticality than the technology. While I acknowledge that technology is essential, these folks should all hold significant roles. But to make data governance about configuration, engineering, or file formats is a sign of a struggle within the organization; that is why there is such a high turnover in the CDO role itself.
Teams Under The HO Data Governance
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1. Data Lifecycle Management and Uplift: Includes the data stewards, business owner management, and the data analysts and business analysts that help uplift data.
a. Data lineage and data uplifting efforts are made here.
b. Data dictionary and cataloging efforts.
c. Business glossary for getting standard business verbiage and metrics across the organization.
2. Data Quality: This team creates quality measures and KPIs, and dashboards to provide the monitoring function and works with risk to make sure the proper controls are in place to ensure quality data.
a. The team works with data stewards, data owners, and data custodians to align the data quality measures with the business and technical requirements and considerations.
b. The team works with engineering to create self-service analytics dashboards. It runs fit-for-purpose forums to ensure data stewards know quality issues in each line of business. This team serves as a squad of people who centrally monitor quality and work with data owners and stewards to document quality issues and refer any fixes to a remediation team.
I am often asked what data quality measures are anyway, and I have a start list that I recommend all firms adopt, and they are:
- The number of CDEs that are monitored
- The % improvement in the completeness, timeliness, accuracy, validity, consistency, and uniqueness of each data element.
- The degree to which data satisfies the requirements of its intended purpose
- The structure and semantics of each data element and data set as a whole
- The % reduction in data entry and data output errors
3. Remediations/Information Management Review: This team takes any issues raised by data quality and other functions and manages the fix of any problems or errors throughout the firm. This team may:
a. Make sure errors are fixed at the source.
b. The source of the issue is identified and resolved or minimized.
c. Data that is missing is extracted properly for fit-for-purpose use.
d. Data privacy rules are enforced.
e. Data risk and controls are put into place at the source, stagging, or ETL to ensure errors or issues are addressed.
f. This team reports to data risk and compliance on how issues are being addressed and closed out.
4. Data Risk and Compliance: This is a small team of data risk and protection and legal professionals who maintain a director's questionnaire with all the identified data risks and how these risks could potentially create problems within an overall enterprise risk framework. This team works with the HO of data governance to co-lead a data risk forum where the progress on addressing data risks is reported. Line of business (LOB) data owners and stewards also sit on this data risk committee.
5. Data Engineering (within DG): I believe this should be a defined separate team reporting into HO data governance/CDO/HO DMO. This squad or tribe or pod contains engineers who specialize in the technology to govern data. They are experts in Collibra, Informatica EDC/Axon. They also help stand up any stagging data areas or pipes to move and manage data. Again, this is a separate team from the team that manages the data warehouse or data operations. It can be the chapter lead or squad leader who manages this team. The expectation should not be that the head of the data governance organization or leader is the same person configuring Collibra or working on file formats or technical metadata. This team should be joined at the hip with the HO of DG to help implement governance and all its sub-activities, including lineage. The HO DG should know how the technology works and evaluate if it serves the team's needs. However, getting the data in and out of the data governance tool kit is this team's and squad leaders' primary responsibility. This is often a missing element in organizational design and talent architectures.
6. Data Management Leader (aka Data Analytics Platform Lead): This is the role where the data analytics platform and engineering team (formerly the BI team) reports to the CDAO/ HO of DG. This allows for much more effective data governance as both analytics and DG are significant clients of the platform. This allows the learning from analytics to quickly be incorporated into DG and the platform. Your data warehouse or big data "platform" should be a living, breathing “brain.” Connecting the dots across DG and platform helps keep technical metadata up to date and creates a form of rapid cycle learning.
This is my POV on what constitutes a best practice data governance function and team. There certainly can be other variations of this, but this is what I have seen get traction. Let me know what your experience has been with data governance teams. What is the best way to define and organize DG for business impact?
I am looking forward to your thoughts.
Also, I believe some of the best teachers are on LinkedIn and YouTube. I highly recommend George Firican's data governance course for a good POV on what I consider good data governance. His course can be found here.
How To Improve Team Dynamics
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3 Important Career Lessons Learned On And Off The Field
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How Ex-NFL Player, Chris Gronkowski, Is Using Social Media To Change Careers
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Originally posted on: https://www.workitdaily.com/mistakes-companies-make-during-layoffs