When faced with red ink on the bottom line, it is easy for managers to forget the impact of layoffs on transitioning and remaining employees! Management may hope remaining employees will just be grateful to still have a job! Yet, the lingering impact can come back to bite a company later when the economy rebounds and competition for talent returns.

Fortunately, there are strategies to implement employee reductions with an eye on the future. The most important one is to treat departing employees with respect and concern for their successful transition. Professional outplacement is vitally important to provide to all levels of employees, not only to avoid potential litigation, but to ensure a positive transition plan for the affected employee.

Just as important is demonstrating to remaining employees that the organization cares enough about all employees to implement layoffs with compassion. Keep in mind that a layoff of a fellow employee often feels like separation of a family member. An empty office next to an employee is a reminder that job security is not a given!

Memories are long, especially with the openness of social media and its impact on a company’s reputation and branding. When it comes time to hire again, candidates will recall how a company transitioned employees and will select organizations that demonstrate they value their employees in the good and bad times. Learn more about mitigating layoffs: The New Imperative of Talent Transition