New report reveals risks of layoff miscommunication
Employees are learning about company layoffs from gossip first, HR leaders second, according to a new report, which warned about the risks of miscommunicating such changes at work.
Careerminds recently polled more than 1,000 full-time employees in the United States who had experienced a team layoff or had been laid off themselves in the last 12 months to look into the importance of layoff communications.
It revealed that more than a third of laid off employees (33.7%) and remaining employees (34.6%) found out about the layoffs through gossip or informal conversations.
These figures are much higher compared with the proportion of laid off employees (26.6%) and remaining employees (24.1%) who learned about the layoffs through a direct update from HR.
"For employees who remained with the company, the story looks familiar, with 'rumourville' once again breaking the news before management or HR get the chance," the report read.
Meanwhile, the report further found that around a quarter of affected employees (27%) and witnesses (24%) only learned about the layoffs once they already started.
This is, however, slightly lower than the number of laid off staff (42%) and witnesses (44%) who found out about the layoffs before any action was taken.
The report said the findings underscore the need for "clear and timely" communication for all employees, as gossip can also create uncertainty among the broader workforce and pose a challenge for HR leaders.
"Senior stakeholders should always know that the way the message is shared is often just as important as the message itself, especially during the time of significant change like a layoff, when a company's commitment to culture via comms will be put to the test," said Raymond Lee, President of Careerminds, in a statement.
Risk of poor layoff communication
Poor communication about layoffs can cause more trouble for organisations, especially for their workplace culture, according to the report.
It found that trust in the firm's relationship went down for 53% of remaining workers and 59% of offboarding employees who had experienced poor communication during layoffs.
Half of employees who witnessed layoffs also said poor communication also made them consider leaving their role.
Having a layoff script and holding conversations with employees before wider announcements are made are crucial in improving layoff communications, the report suggested.
It also advised HR teams to be fully prepared for what to say during a layoff event, including having answers about company benefits, questions on mental health, or company foul play.
Remaining employees should also remain in the loop, while laid off employees should get clear documentation outlining their benefits and other available support.
"Employees who feel informed and respected are not only more likely to trust leadership and remain engaged, but also more likely to find new employment quickly," the report read.
"On the other hand, unclear or inconsistent communication amplifies uncertainty, reduces advocacy, and leads to higher turnover."
