In my last blog I talked about the trending up of M&A and the importance of having a solid integration plan. One of the key components of that plan needs to be a well-thought-out strategy for outplacement of employees whose jobs are affected by the merger. How well you handle this will impact your reputation not only with departing employees, but also with those who are retained. Often it’s the ones left behind who suffer most as they lose their work buddies, adjust to shifting responsibilities and workloads, and worry about whether they’ll be the next to go. Here are some best practices.
- Communicate the business reason for the change with compassion and respect. If you use a third party to conduct the notification meetings, be sure company leadership is involved and available to answer questions and express gratitude to employees for their contributions to the company. Practice open, honest communication giving as much information as possible as soon as possible. These conversations and communications are never easy, but the more sincerely and completely they are delivered, the better they will be received.
- Adhere to timing/notification requirements for layoffs. Work with your employment attorney to ensure that you are compliant.
- Train your managers. Letting someone go is one of the most difficult responsibilities for a manager, especially when the reason is for something other than performance. Role play some conversations and prepare your managers to deal with anger, sadness and other emotions than may come up.
- Provide outplacement services. Consider hiring a third party outplacement service to help employees: update their resumes, start their job search, network, find resources and deal with their sense of loss. Allow the employees to exit well. Helping people transition in a positive way will help you avoid potential lawsuits and negative press. You never know whether one of these former employees will end up as a client or a reference.
- Nurture those who remain. Set up small group meetings to give remaining employees the opportunity to ask questions and air their concerns. Communicate company direction and how each function, team and role will contribute to achieving the goals. Encourage managers to have one-on-ones with each employee to convey how they personally fit into the big picture.
I have helped many organizations through the outplacement process, both as a member of a corporate HR team and as a consultant. Please contact me if you would like additional suggestions.