Layoffs often are a last resort for struggling organization as they fight to regain a position of strength. Many of them are necessary, and without them, could mean even more job losses down the line. Many laid off workers will find other work, but some will not. As many laid off workers, especially those older in age, can attest, often a layoff can mean never returning to an income you’ve been accustomed to or a even a premature end to a career.
Layoffs also create a very precarious situation for the organization and the employees left behind. If not handled as prudently as possible, layoffs can leave an organization even worse off — with remaining employees who are at the best disappointed or, worse, disengaged and distrusting.
Healthcare is an industry wracked with layoffs. We’ve covered 91 separate layoff ‘incidents’ at hospitals and health systems this year alone.
I’m sure no layoff decision on that list came easy to the executives making them. Yet, they deemed them necessary.
In an industry with severe reimbursement pressure that, in many markets, has far more supply than demand, layoffs are no longer a surprise.
Even the strongest organizations in our industry have had to lay off workers to remain in the black.
So, while layoffs in healthcare aren’t inevitable, they are likely to continue.
If your organization deems one necessary, what is the best approach?
Becker’s Editor Heather Punke provided some guidance last year in her article, “Hospital Layoffs on the Rise: 4 Best Practices for Hospitals Facing the Last Resort.“
Healthcare public affairs firm Jarrad Phillips Cate & Hancock, which specializes in communicating during these sort of crisis situations, outlines five best practices:
- Explain the context.
- Tell your employees and physicians first.
- Focus your talking points on your patient care mission.
- Acknowledge the tough decision, but also define the benefits.
- Be a leader in the need to think – and act – differently
Had Microsoft followed these, it’d still be in the headlines, but maybe not the butt of the joke.
Take this as a lesson you can learn from others, and if faced with a layoff, communicate early and clearly, even if it’s uncomfortable being so straightforward. It’s the only chance you have of maintaining employees’ respect.
Have you had to announce a layoff? What was your experience? Share your thoughts with Editor Lindsey Dunn (ldunn@beckershealthcare.com) for possible publication.
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