News Spotlight

The rise of ghost jobs and talent fishing. On job sites like LinkedIn and Indeed, recruiters are increasingly posting fake jobs to build a stable of resumes, leading hiring managers to avoid the platform entirely (Inc.).

Women miss out on early promotions. While more women hold executive jobs than ever before, many are passed over for promotions early in their career, something that could be exacerbated by recent DEI pushback (The Wall Street Journal).

AI is poised to take our most meaningless jobs. While many knowledge workers struggle to find purpose in their work, their livelihoods are at risk as generative AI takes over many administrative tasks (The New York Times).

Stat of the Week

A recent study found that 61% of full-time, on-site workers would prefer a hybrid work arrangement, while 28% would prefer to be fully remote. With many companies still trying to bring employees back to the office post-pandemic, it’s clear that leaders are fighting an uphill battle when it comes to in-person work.

The solution may not be to simply revert to remote work, which can exacerbate challenges with burnout and work-life balance, especially when employees are hybrid. Instead, companies should focus on enhancing the well-being of employees regardless of where they set up their desks, including setting clear expectations, identifying realistic performance goals, and recognizing employees for their work.

Deep Dive Article

When Handling Layoffs, HR Leaders Should Focus on These 6 Actions

In recent years, the hiring landscape has been bumpy, to say the least. Job seekers and hiring managers alike have dealt with unpredictable, tumultuous, and unprecedented twists and turns, starting with mass layoffs in 2020 followed by the tightest labor market in two decades, rising inflation, and geopolitical instability wreaking havoc on supply chains across the globe.

Today, unemployment is down, but so is hiring. With the wind-down of the “Great Resignation,” more people are staying in their current roles while prospective employees — especially recent college grads and other less-experienced applicants — struggle to break in. The market is healthy overall, but some economists suggest that this kind of hiring stall can precede a recession, meaning layoffs could be on the horizon.

Over the past few months, employers have added just 116,000 jobs per month, compared to 451,000 two years ago. While the 2022 job numbers are attributable to the post-pandemic hiring boom, growth is more conservative today than the pre-pandemic norm. And while unemployment remains low, there have still been some big layoffs this year, especially in the tech sector. Intel reduced its labor force by 15% in August, while Cisco announced its second round of layoffs around the same time. Big names like Amazon, Tesla, and Microsoft have undergone significant layoffs in the past year, but smaller startups are also not immune.

With the future of the job market so uncertain, one thing is clear: the old way of doing business needs to change. Many corporate leaders are already aware of this in their onboarding and HR processes for current employees. But in this unpredictable economy, it’s crucial that leaders also fine-tune their offboarding processes, which shape employee experience whether they are laid off or depart voluntarily.

One factor that has massively reshaped the onboarding and offboarding landscape is remote work. For layoffs in particular, many people are now let go over video calls in their own homes, an unprecedented experience for everyone on both sides of the conversation, making the process less controlled and more personal than ever before. Some employees have even filmed their layoffs and posted them to social media, making it crucial that employers conduct these events in a way that is as respectful, generous, and beneficial to the employee as possible. Failing to do so can be harmful to employees’ mental health as well as the company’s reputation.

While most companies may not yet be amid a layoff surge, signs suggest that they could be coming. Now is the time for HR leaders to prepare for this possibility to ensure that both their employees and companies are protected. A new initiative from isolved offers guidance for HR leaders looking to improve their offboarding process and to provide laid-off employees with the resources they need in their career transition. An alternative to COBRA Health Insurance, the isolved Portable Alternative Coverage Powered by When (isolved PAC) provides tailored coverage to COBRA-eligible employees along with expert guidance around both healthcare and financial planning.

"While much emphasis is placed on creating a seamless and engaging onboarding process, it’s equally important not to overlook the offboarding experience,” shared Celia Fleischaker, CMO for isolved. “A positive and stress-free offboarding not only reflects the company’s commitment to its people but also helps departing employees leave on a high note, fostering goodwill and protecting the employer brand. Ensuring a respectful and well-managed exit can turn former employees into long-term advocates and even future rehires."

To prepare for a future in which layoffs may be on the rise, HR leaders should consider new solutions and processes that can better help their employees navigate a changing world. While the exact landscape of this changing world remains to be seen, employers will always need to be ready to make changes to the workforce and to make sure their employees are prepared for what’s to come.

Here are 6 actions HR leaders should keep in mind when handling layoffs:

1. Communicate Transparently: It's essential for HR leaders to clearly explain to their workforce the rationale behind layoffs, whether it's due to economic challenges or business restructuring. Honest, direct conversations in one-on-one or small group meetings are crucial for employees and managers alike. Leadership should be visible and actively involved in these conversations, demonstrating empathy and responsibility.

2. Treat Employees with Respect and Empathy: Recognize that layoffs are deeply personal and emotional for those affected. Managers should be trained to deliver the news with compassion and allow time for employees to process the information. Providing support services such as career counseling, outplacement assistance, and mental health resources can make a difficult situation more bearable.

3. Offer Fair Severance Packages: Perhaps the most important is for employers to invest in fair severance packages that reflect the employee’s tenure and the company’s financial position. Extending healthcare benefits and helping employees navigate their options can offer a secure path forward. Severance, though not always legally required, helps employees maintain financial security and preserves the company’s reputation.

4. Maintain Dignity Throughout the Process: It’s important to handle layoffs in a manner that avoids actions that feel dehumanizing, such as locking employees out of their systems prematurely or having security escort them out of the office. Providing time for employees to say goodbye to colleagues and to tie up any loose ends ensures a respectful closure for those laid off, as well as those who stay behind.

5. Help Retained Employees: Employees who remain after layoffs may feel survivor guilt, anxiety, or demotivation. Leaders must acknowledge these emotions and provide reassurance, giving a clear vision of the future. Actively working to restore trust and team cohesion is essential to maintaining morale and productivity.

6. Prioritize Continuous Improvement: Once layoffs are completed, it's important to gather feedback from both affected and retained employees. This allows the company to identify areas for improvement in handling such situations going forward. Continuous learning from these experiences can help the organization better manage future challenges.

Take the time today to do it right tomorrow.

HR leaders must keep the above steps in mind when approaching layoffs, but this is incredibly difficult to do when they are under pressure to move swiftly or don’t have the right tools and processes in place. Additionally, without a foundation of trust, it’s impossible to undertake layoffs in a way that is both respectful and efficient. Leaders should invest not only in better offboarding and layoff processes but in the entire HR function, ensuring that their employees are supported throughout their tenure and understand the decisions that lead to the moment of their departure.

A model for this approach is Jaylene Owen, Human Resources & Payroll Director of Hames Corporation, a family-owned and cooperative business in Sitka, Alaska. In 2016, Owen was tasked with overhauling the company’s human resources department, including by bringing their records into the digital age and establishing meaningful learning & development opportunities for employees. By partnering with isolved, Owen was able to reimagine human resources for Hames, creating a foundation of trust, respect, and opportunity that will support employees today and in the future.

Thanks for reading — be sure to join the conversation on LinkedIn and let me know your thoughts on this topic!

Quote of the Week

“Rivers know this: There is no hurry. We shall get there some day.”
​A.A. Milne