In a recent In His Name podcast with Mark Griffin, CEO Karmae Cipriotti Fahr of The Fahr Group executive search firm discussed the crucial role of empathy and strategy in managing downsizing within organizations. She underscores how, in times of economic uncertainty, layoffs become a challenging but sometimes necessary action for companies. Fahr provides actionable advice for employers on how to handle these difficult transitions:
- Planning for Notification Day: Employers should prepare meticulously for the day when layoffs are announced to ensure the process is as respectful and clear as possible.
- Employee Engagement Post-Downgrade: Developing strategies to keep remaining employees engaged and motivated is essential for maintaining productivity and morale.
- Services for Exiting Employees: Offering robust support and resources to employees who are leaving can ease their transition and help maintain a positive relationship.
Fahr’s insights are particularly relevant given the current economic climate. With food prices soaring—eggs up 54% or more—and gas prices also rising, many Americans are feeling the financial squeeze. Alarmingly, 40% of Americans struggle to keep up with bills and a significant portion of the population, including parents, caregivers, and sole breadwinners, are living paycheck to paycheck.
A striking statistic reveals that 28% of Americans aged 54 and older face homelessness, highlighting the critical need for employers to understand their employees’ personal circumstances better. With a mature workforce—many employees aged 54 and older—employers must be more aware of the personal and financial challenges faced by their executives and staff. Understanding these stories and offering customized and empathetic support during downsizing is not only compassionate but necessary for maintaining trust and engagement within the company. According to Harvard Business Review:
“Company culture has grown in importance, thanks to recent high-profile culture crises such as those at Uber and Wells Fargo, the intensified push for DEI (diversity, equity, and inclusion), and the continuing battle for talent. Culture has become a strategic priority with impact on the bottom line. It can’t just be delegated and compartmentalized anymore” (Denise Lee Yohn, HBR, 2/8/2021).
The way a company handles downsizing speaks to its culture. Accordingly, Fahr emphasized the golden rule—“do unto others as you’d have them do unto you.” Not least, she cites a Bible verse from the book of Philippians that requires all of us to respect everyone everywhere at all times:
“Show proper respect to everyone, love the family of believers, fear God, honor the emperor [leaders/governors].” 1 Peter 2:17 (NIV)