Honesty is the Best Policy

When employers make the difficult decision to conduct layoffs, it creates anxiety and tension for employees, mainly because they are unsure of their personal job security in the organization. Studies have shown that perceived threat of job loss is highly correlated with turnover intention. When employees feel that their jobs are in serious jeopardy, they inevitably start looking at other employment opportunities in which they can find stability. Feelings of uncertainty and intentions to leave the organization lead to unproductive behavior and ultimately affects business in a negative way. How can employers minimize the frenzy that goes on following the announcement of a layoff? 

Often times, employees act spontaneously based on assumptions and incorrect information from the rumor mill. If employers can engage in honest, clear communication with their employees, they can effectively diminish assumptions and eliminate unnecessary anxiety. Even when they have to deliver unfortunate news, it is beneficial to give employees a realistic idea of what is to come in the future so they can plan ahead and focus on necessary tasks. If there is no news to deliver, management should honestly state that there is no news but give a time frame of when employees can receive an update. It is important for management to create a communication schedule that consists of frequent communication to employees following the announcement of a layoff. In order to reach out to all of the employees, there should be mixed methods of communication including emails, phone calls, informational sessions, and even one-on-one meetings.