"During difficult economic times, it's important that employees feel they are valued," said Douglas Klein, president of Sirota Survey Intelligence, a research firm with North American headquarters in New York. "Plus, both management and non-management employees are likely to report feelings of guilt, stress, and depression during and after layoffs."

Sirota surveyed some 500,000 employees after the Sept. 11 terrorist attacks to track trends in employee confidence, job satisfaction, workload and other factors, and Klein told IndustryWeek his company sees similarities between the current economic downturn and the post-9/11 economy. That theory has empirical support: The Bureau of Labor Statistics reported Nov. 24 that mass layoff claims from January 2008 to October 2008 "were the highest for the January-October period since 2002." (Mass layoffs are those involving 50 or more layoffs from each employer.)

Klein and his team insist employers can effect positive change by focusing on communication, creative solutions and teamwork. "Anger, concern, insecurity, and survivor guilt are all perfectly natural emotions for employees to feel," said Klein. "It is crucial for managers to spend time assuring employees that it is OK to feel this way. Otherwise, employees may release these feelings in non-productive ways or situations."

Try this:

A spoonful of sugar may not help layoff, cutback and budget reduction news go down — but Klein and his team do offer suggestions on how to soften the blow of bad news:

• If you make an unpopular decision, keep the lines of communication open. "Most employees want to know what will be happening to them, especially whether they will be laid off," Klein said. "Secrecy or lack of transparency will just add to their sense of powerlessness."
• When employees leave, those left behind often face increased workloads. That shift can strain employees, but it also can provide opportunities. "Following layoffs is a good time to introduce 'stretch assignments' — those that will expand the skills of survivors and demonstrate your confidence in them," Klein said. "It is also a good time to increase the frequency of discussions about career-related topics, including possible advancement opportunities."

Source: SAF