Yahoo Finance How employers can avoid revenge after making lay-offs
Redundancies have been rife in the last year. Last week, the clothing company New Look was the latest business to announce redundancies at their head office. Employees at the big tech firms are suffering too, with lay-offs announced at Amazon (AMZN), Google (GOOGL), Meta (META) and more.
If you’ve ever been made redundant, you’re likely to have experienced a range of emotions. It’s common to feel anxious, particularly about money or finding a new job. You may have felt let down or embarrassed if you’ve worked at the company for a long time.
Or, you may feel angry — and this anger can easily turn to thoughts of revenge.
According to a survey of 1,000 employees and 178 managers, 85% of recently laid-off employees have attempted to sabotage their previous employer. The research found remote workers were 47% more likely than on-site workers to attempt an act of retribution.
Ryan McSweeney, senior marketing manager at the IT firm Electric, says losing a job is always difficult, especially if employees were unaware that the termination was coming.
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“Our study found that the top three acts of sabotage were posting inappropriate content on company social media, sending inappropriate emails to clients, and stealing company assets,” he says.
Former employees may also leave scathing reviews on job review websites like Glassdoor. However, whether someone seeks revenge often depends on the redundancy process.
Nearly nine in 10 (89%) laid-off employees felt criticised in their exit interview, according to the research. One in 10 people felt blindsided by their recent layoff — and nearly one-third of recently laid-off professionals were let go via email.
“We found 85% of laid-off employees reported a poor offboarding experience, with on-site employees claiming a better experience than their remote counterparts,” says McSweeney.
“Although some people may attempt to sabotage their previous employer, employers and managers can help mitigate this risk by offering civility, clear communication, an efficient offboarding process, and a severance package,” he adds.
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“For example, we found that half of the employees who reported a smooth offboarding process saw no need for vengeance against their former employer.”
So how can organisations can make the redundancy process more humane?
Give advance warning
Giving as much advance warning of redundancy as possible is essential.
Sufficient advance warning of the impending situation will give people time to find other work, as well as come to terms with the possibility of lay-offs.
Even if redundancies aren’t set in stone, it is important to be honest and open with employees — who will likely be aware of any trouble anyway.
Speak to the employees in person
Worryingly, 15% of tech managers have used the AI platform ChatGPT to write a script or email to terminate employees.
Although it’s never easy to deliver bad news, taking the time to speak to people individually or in-person can make a big difference to how they feel. This won’t eliminate worries about the future or finances, but it can help to show appreciation for the time and effort they have put into the company.
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Employers need to be prepared to deal with the range of emotions that come with lay-offs, including sadness, frustration and anger.
Make sure redundancy packages are fair
In the UK, an employee will normally be entitled to statutory redundancy pay if they’ve been working for an employer for two years or more. An employee can get half a week’s pay for each full year they were under 22, one week’s pay for each full year they were 22 or older but under 41, and one and half week’s pay for each full year they were 41 or older.
However, offering a better redundancy package over the statutory minimum will make the financial and emotional impact of redundancy easier to cope with.
“A smooth transition aided by in-person interactions or via an automated remote offboarding solution, a well-guided exit interview, and a healthy severance package can help companies avoid acts of retribution and sabotage,” says McSweeney.
Watch: McDonald's to lay off hundreds of employees virtually
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