The COVID-19 pandemic has sent shock waves rippling through the world economy. Almost immediately, we shifted to a work-from-home environment across virtually every industry sector. Many organizations are now facing the very real possibility of furloughing employees, implementing layoffs or eliminating jobs completely. These actions might be critical for the sustainability of the organization, but they will be more challenging to implement while unprecedented numbers of employees are temporarily working from home.
Given current economic conditions and widespread disruptions to business and personal life, the impact on those displaced, those remaining, and the organization as a whole will be significantly greater than normal. It is therefore critical to recognize and respond to the unique dynamics of displacing workers in the midst of the COVID-19 situation.
Planning and preparation for action is challenging because of the dynamic nature and unknown duration of the situation. While the near-term business impact of COVID-19 is clear for many organizations, the full magnitude and duration of the impact is not yet known. While this makes planning a challenge, employee-related expenses are typically amongst the biggest costs for any organization, which means they may need to be addressed.
Many organizations have opted for an 80% work week at 80% pay since this creates a 20% reduction in expenses while maintaining and protecting organizational capacity for recovery. Other organizations have determined that their drop in business has been too steep and/or will last too long to avoid layoffs. In these situations, immediate action is required and the shift to work from home requires alternatives to in-person separation meetings.
Video conferencing or phone is the most realistic and appropriate alternative for giving notification of the layoff or job elimination. While not ideal, these tools provide a much better avenue for sharing the message in an empathetic way and verifying the message was received than notification by email or other messaging platforms.
Group notifications via video or phone conferencing makes sense for large layoffs as these channels provide consistency and timeliness of message. They are an effective way to announce what is happening and why, but they are not effective as a forum for providing individual information, discussing the logistics of handing off work, or addressing employee-specific concerns. Individual video or phone conferences are preferred when the number of people being notified make this a possibility.
Regardless of the forum, it is critical to have a script to make sure the message is clear and consistent. As with in-person separation meetings, it is important to have a second organization representative present on individual notification calls to act as a witness to what was said.
Logistics to consider:
Layoffs and position elimination cause angst and disruption for the entire organization. Clear communication and a focus on business continuity helps ease the trauma and provides focus for remaining employees.
As quickly as possible, let the broader organization know what steps have been taken, why, and what will happen next in terms logistics and redistribution of work. A similar communication plan needs to be implemented for clients, vendors, or other key constituents to ensure continuity. Whatever the situation, proactive communication is always better than letting the rumor mill define and circulate the message. These are difficult times which may require difficult actions. Organizations that focus on handling these actions as best they can, practicing good communication, and maintaining an appropriate degree of business continuity will weather this storm better than those that are rash in how they slash their people costs.
Brian Clapp
President
CCI Consulting
Lorraine Webb is a human resources and organization development executive with significant experience in the energy and utility markets.
Currently, Ms. Webb is Vice President of Human Resources and Organizational Development for Philadelphia Gas Works (PGW) and is responsible for all human resources and organizational development functions including compensation, benefits, recruiting, talent management, wellness, EEO, EAP, HRIS systems, learning and development.
Ms. Webb and her team have played a pivotal role of building a talent management program and succession planning process in the face of exiting baby boomers, while effectively managing significant challenges in terms of internal and external constraints.
Recently, Ms. Webb and her team were awarded the inaugural 2019 Employer of Choice award by the Office of Workforce Development, City of Philadelphia. This award recognizes exemplary HR practices.
Further, under her leadership PGW won the HR Department of the Year Award in
2011 and has been cited on numerous occasions as a Best Places to Work for
Minorities and Women in Engineering by Diversity Magazine.
Ms. Webb was an honoree for Philadelphia Leadership Awards for Women’s E News, 2010
Adding to her experience in the energy/utility arena, Ms. Webb has worked as an HR professional in the pharmaceutical industry, manufacturing and banking. Ms. Webb is passionate about coaching and enjoys helping professionals and executives reach their full potential.
Ms. Webb is a graduate of Binghamton University and is a member of SHRM.
Tom Sontag is the Executive Director, Human Resources at the University of Pennsylvania. In this role, he is responsible for the Learning & Education, HR Communications, Quality of Work Life, and Tuition Benefits functions. Collectively, these provide Tom with the opportunity to pursue his passion for talent development and workforce effectiveness.
Tom has worked at Penn since October 2011 and has nearly 35 years of experience in training and organizational development with large organizations. Before joining Penn’s Division of Human Resources, Tom held training and organizational effectiveness roles for organizations such as Development Dimensions International (DDI), PNC Financial Services Group, Citizens Bank, Drexel University, NRG Energy, and Covance. He earned a BA in English literature from John Carroll University, an MBA with a focus on human resources and leadership development from Duquesne University, and a Ph.D. in educational leadership from Drexel University. Additionally, he has earned the SPHR and SHRM-SCP certifications.
Peggy Verdi is a dynamic Human Resources executive with nearly 35 years of experience in HR strategy, change management, organizational design, executive coaching, team effectiveness, and talent assessment, development and management.
Peggy currently holds the position of Vice President, Human Resources and Administration (CHRO) at Subaru of America, Inc., overseeing all aspects of human resources and corporate facilities & services, its practices, and operations in order to meet the needs of the constantly evolving business.
Prior to joining Subaru, Peggy served as Chief Human Resources Officer at BAYADA Home Health Care and as Executive Director, Human Resources Business Partner/Change Planning at Bristol–Myers Squibb, a leading manufacturer of pharmaceuticals and biologics.
Peggy received a Bachelor of Arts in Liberal Studies with a focus on Labor Relations and a Master of Arts in Human Resource Management from Rutgers University.
Elizabeth Quarello (SPHR, SHRM-SCP) is an energetic senior HR leader with over 16 years of diverse experience in fast-paced corporate settings across a variety of industries, including management consulting, architecture, media, and biotechnology and pharmaceuticals. She is a hands-on leader and influencer with a passion for driving organizational change to create positive working cultures that enable organizations and individuals to realize their full potential.
Elizabeth is currently the Senior Director of Human Resources and Operations for Avid Radiopharmaceuticals, a wholly-owned subsidiary of Eli Lilly & Company. In this role, she is responsible for oversight of all HR functions, serves as a key senior leadership member, and oversees operational functions including HSE, compliance, contract administration, facilities management and administration.
Mike Higgins is a seasoned Human Resources leader with over 20 years’ experience in leadership development, employee/labor relations, performance consulting and executive coaching programs in the Retail, Financial Services and Healthcare industries.
In his current role as the Senior Director of Strategic Talent Management & Learning at The Children’s Hospital of Philadelphia, Mike leads enterprise-wide talent management activities, including leadership, professional skills, career and organizational development, succession planning, performance management and employee engagement for the Hospital’s 15,000 employees.
Mike holds a Bachelor’s degree in Secondary Education from LaSalle University, and a Master’s degree in Education (Corporate Education/Instructional Systems Design) from Pennsylvania State University.