Even capitalized companies have accumulated layoffs. Unfortunately, this trend is expected to last. Factors such as inflation, tariffs and low consumer confidence can soften the economy and could strengthen over the next few years. And because of the weak job market, many people affected by layoffs could face a long period of unemployment.
It all poses a risk to CFOs who are forced to cut but end up taking up disproportionate liability for predictable outcomes. Angry former employees who can't immediately find new jobs get a lot of time to beat the company online.
The anger of these employees may be justified, but their actions are not. Fortunately, proactive steps can be taken to minimize the risk of damaging your organization's online reputation and mitigate the impact if it occurs. Below are some key strategies to protect your brand and minimize blowback from workload reductions.
I will communicate clearly
Layoffs are inevitable. Your employees understand that. What they don't understand is that they are blinded by layoffs, especially if C-Suite knew it was coming.
As CFO, that's a difficult position to get in. By notifying employees of potential layoffs in advance, there is a risk of leaving earlier than they are ready. Still, it can go a long way in reducing the hostility that hostile employees may feel towards the company. It could also mean the difference between leaving on relatively good conditions and creating a costly PR crisis that not only harms the final line but also makes recruiting employees challenging in the future.
If that is not possible, organizational communication on this issue must be transparent. Lead with empathy, emphasizing economic reality. For example, if customs duties are negatively affecting your company, be sure to mention them. The tariff issues affecting US companies are widely covered in the media, so workers are already familiar with the wider impact. Cuts are necessary to keep your company floating, and explain that despite the cuts, you value your contribution to the company.
It is also worth telling you that you are working hard to hire as many people as possible. why? Those who are fired may be caring for their colleagues and friends who are still employed. Therefore, they may be reluctant to take actions that could put those people's work at risk.
What's more, it's authentic. Don't say anything just because you think it might soften the blow. People are generally pretty clever and can be seen through it.
Run a positive PR campaign
A consistent public relations effort will achieve three important objectives:
- It keeps your brand in a positive light in front of your clients. It's always important, but even more important while the economy slows down.
- It keeps your brand in front of your previous employees. In conjunction with the other steps I outlined, PR will help keep them on your side if done correctly.
- It creates an ocean of positive advertising that can help the company receive negative advertising if former employees criticize it or post defamatory comments online.
Starting a PR campaign takes time and effort. If you wait until you feel “need” it, you will already be behind the curve. Plus, thanks to the 24/7 news cycle and social media, people are incredibly media-savvy. If you wait for a problem to occur, Stakeholders tend to see through your efforts.
Please continue to engage
After being fired, there are two clear periods where someone is most likely to attack your brand.
The first, of course, when they were first fired. This period is generally short and intense, but can be mitigated by effectively implementing the above strategies.
The second is after a former employee has been unemployed for a while or is unable to find a suitable job. The situation is a little difficult to mitigate because the timeline is not predictable. It is also easy to be confused about the tasks necessary to maintain the financial health of a company.
Stay relaxed and interact with employees. Part of this includes continuing to provide support to former employees when they seek new employment. That includes sharing available employment opportunities, whether it's your company or someone else, including motivational content, or even direct referrals. Career counselors, branding experts and psychologists can create content that former employees benefit. By offering it, you will remain valuable to laid-off employees while maintaining a positive engagement with them.
