CORPORATE LEADERSHIP COUNCIL®

www.clc.executiveboard.com

MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS:

CASE FOR ACTION AND MANAGER’S TOOLKIT

CLC9431710
 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TABLE OF CONTENTS

Z Section I: Business Case for Managing Layoffs and Survivors....................................................................................................... Pages 3–6
Z Section II: Layoff and Survivor Communication Tools for Managers............................................................................................ Pages 7–16
Z Tool #1: Manager Tool for Selecting Individuals for Layoff ..................................................................................................... Pages 8–9
Z Tool #2: Manager Checklist for Preparing for Separation Meetings.......................................................................................... Pages 10–11
Z Tool #3: Manager Script for Conducting Separation Meetings.................................................................................................. Page 12
Z Tool #4: Manager Checklist for Post-Layoff Survivor Retention and Productivity................................................................... Pages 13–14
Z Tool #5: Manager Diagnostic to Evaluate Employee Stress Levels........................................................................................... Pages 15–16

2 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

SECTION I
Business Case for Managing Layoffs and Survivors

3 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

POOR EXECUTION OF LAYOFFS ELIMINATES POTENTIAL COST SAVINGS

Fifty-four percent of downsized firms fail to cut overall costs, 66% failed to increase profitability, and 79% failed to show a satisfactory ROI, according to a recent study on the impact of
1
layoffs on 1,005 organizations. This inability to achieve economic benefits stems from both the direct costs of layoffs, as well as the indirect cost of low survivor productivity,
increased turnover, and rehiring expenses, which combined can reach up to $23,639 per employee, as illustrated in Figure 1 below.

As the first line of communication with employees, managers are the key to a successful layoff. They are responsible for conducting separation conversations and their behavior can
determine how severed employees and survivors view the organization. Ensure that employees view your organization as fair and just by providing managers with guidance and tools on
how to conduct layoff conversations and support severed employees.

2
Figure 1: Cost of Laying Off One Employee

$550 Productivity Loss Costs—includes cost of increased survivor

turnover, cost of reduction in survivor productivity,
and onboarding/training costs of replacements

$8,178 Replacement Hiring Costs–includes sourcing activities, search firms,

recruiter compensation, candidate assessment, technology and
infrastructure, and other related expenses

$23,639

Severance Costs—includes administration, severance package,

$14,911
and outplacement support

4 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

GUILT AND ANGER IMPACT SURVIVORS’ PRODUCTIVITY AND SERVICE

Layoff survivors often experience a pervasive sense of personal violation that can manifest itself as a set of negative attitudes, perceptions, and behaviors.3 While laid-off employees
typically receive counseling, severance, and outplacement services, organizations often ignore the important task of engaging employees that survive layoffs and are responsible for leading
4,5
the reorganized company to future success. Missing this crucial step results in the following decreases in quality and productivity metrics, as well as an increase in voluntary turnover:

Figure 2: Survivor Quality and Productivity Decrease Post-Layoff

6 Figure 3: Survivor Turnover Increases as Layoffs Increase7

Errors and
Mistakes Being 77.0%
Made 15.5%

14.9%

Expected Survivor Voluntary Turnover Rate

Decline in
81.0%
Customer Service 14.1%

Decline in Quality
of Company's 69.0% 13.0%
Products/Services 36% increase in voluntary survivor
turnover when organizations layoff
only 2% of their workforce
W itnessed Decline
in Productivity of 64.0%
Colleagues

10.4%
Decline in Personal
75.0%
Productivity
0.5% 2.0% 5.0% 10.0%
0.0%
0% 45% 90%
Percentage of Workforce Laid Off
Percent of Survivors Reporting Effect

5 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

MANAGERS KEY TO MAINTAINING SURVIVOR RETENTION AND PRODUCTIVITY

As the first line of communication with employees, managers are the key to a successful layoff. They are responsible for conducting separation conversations and their behavior during and
after the layoff process greatly influences employees’ perception of the organization. Although commitment to the manager is not itself the most powerful form of commitment, managers have
8
tremendous impact on their employees’ commitment to the job, team, and organization as illustrated in Figure 4. Additionally, this increased commitment results in survivor productivity,
as survivors rating their managers highly in visibility, approachability, and candor are 72% less likely to report a decrease in their own productivity and 65% less likely to report a decline in the
quality of their organization’s product or service.9

10
Figure 4: Impact of Highest Scoring Manager Attribute on Commitment

6 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

SECTION II
Layoff and Survivor Communication Tools for Managers
Z Tool #1: Manager Tool for Selecting Individuals for Layoff ..................................................................................................... Pages 8–9
Z Tool #2: Manager Checklist for Preparing for Separation Meetings.......................................................................................... Pages 10–11
Z Tool #3: Manager Script for Conducting Separation Meetings.................................................................................................. Page 12
Z Tool #4: Manager Checklist for Post-Layoff Survivor Retention and Productivity................................................................... Pages 13–14
Z Tool #5: Manager Diagnostic to Evaluate Employee Stress Levels........................................................................................... Pages 15–16

7 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #1: MANAGER TOOL FOR SELECTING INDIVIDUALS FOR LAYOFF

Managers have the most knowledge about the performance of their direct reports, but often struggle to accurately evaluate it. Provide managers with clear guidance on what criteria against
which employees should be evaluated and what high, medium, and low performance in these areas looks like. This tool allows managers to evaluate their direct reports in non-critical roles
for layoff based on their performance, potential, and transferability of skills to another function or business unit.

STEP 1—Evaluate Performance versus Potential: Evaluate each of your direct reports based on their performance and potential using the definitions provided below and map them on the
performance versus potential matrix. Group your direct reports into the 4 different colored areas illustrated in the performance versus potential matrix:
• Green: Should not recommend for layoff in any circumstance
Performance Definition
• Yellow: Might consider recommending for layoff
• Red: Should strongly consider recommending for layoff Evaluate performance based on:
• Most recent formal performance review
High Performance, High Performance, High Performance, • Most recent 360-degree reviews
Low Potential Medium Potential High Potential • Informal performance observations since last formal review
• • •
Potential Definition
• • • High Potential Medium Potential Low Potential
• • • • Strong performer in current • Strong performer in current • Weak performer in current
role and able to advance to role and able to advance to role or not capable of
• • • the next level immediately the next level within 2 years advancement to next level
• High level of learning agility; • Moderate level of learning • Low level of learning agility;
Medium Performance, Medium Performance, Medium Performance, easily adapts to change and agility; able to deal with struggles with change and

Ability
Low Potential Medium Potential High Potential ambiguity change and ambiguity ambiguity
• Capable of moving across • Likely capable of moving • Not capable of moving
• • •
Performance

and within business units across and within business across and within business
• • • • Limitations can be units with training units
addressed through • Leadership limitations need • Unable to address limitations
• • • additional experience and/or to be addressed through experience and/or
targeted development targeted development
• • • • Frequently displays high • Frequently displays high or • Rarely displays high or

Low Performance,
Low Potential
• •
• •
Engagement
levels of discretionary effort* moderate levels of moderate levels of
Low Performance, Low Performance, • Highly likely to remain with discretionary effort* discretionary effort*
Medium Potential High Potential the organization long-term • Moderately likely to remain • Unlikely to remain with the
with the organization long- organization; actively looking
• term for another job or preparing
to retire
• • Strong interest in • Moderate interest in • Little or no interest in
Aspiration

advancement to the next advancement to the next advancement to the next

• • •
level level level
• • • • Strong interest in additional • Moderate interest in • Little or no interest in
advancement in the future additional advancement in additional advancement in
the future the future
Potential * Discretionary effort is defined as willingness to go "above and beyond" (e.g., helping others with heavy
workloads, volunteering for additional responsibilities, looking for ways to perform a job more effectively)

8 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #1: MANAGER TOOL FOR SELECTING INDIVIDUALS FOR LAYOFF (CONTINUED)

STEP 2—Evaluate Skills Transferability: Evaluate the transferability of each of your direct reports’ skills to another function or business unit within your organization based on the
questions below. Tally the total number of “yes” responses and compare to the total for other direct reports:
Skills Transferability Evaluation
Question Yes No
Does the employee possess strong business acumen?
Is the employee familiar with the organization’s operations and products/services?
Is the employee able to easily and quickly learn new concepts and processes?
Is the employee adaptable and flexible?
Does the employee possess strong communication skills?
Does the employee possess strong time management skills?
Does the employee work well in a team setting?
Does the employee possess specific expertise and/or experience required for any of the internal vacancies?
Does the employee have an interest in being redeployed to another function or business within the organization?
Total

STEP 3—Rank Direct Reports: Rank your direct reports from lowest to highest scoring based on their placement in the performance versus potential matrix and their score in the skills
transferability evaluation. Recommend those employees at the top of the list for layoffs depending on the number of employees you were assigned to recommend.

Rank of Direct Reports Recommended for Layoff

Rank Employee Name Rank Employee Name Rank Employee Name Rank Employee Name

1 5 9 13

2 6 10 14

3 7 11 15

4 8 12 16

For a customizable template version of this tool, please double-click on the paperclip.

9 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #2: MANAGER CHECKLIST FOR PREPARING FOR SEPARATION MEETINGS

Managers struggle with conducting difficult conversations with their direct reports due mostly to a lack of coaching. This tool provides managers with a clear checklist of how to prepare for the
official separation meeting.

The following information will assist you in planning an effective separation meeting.

Objectives—In preparing for, conducting, and following-up on this meeting, remember that your objectives are to:
• Communicate the decision in a clear, consistent, and professional manner • Describe outplacement support and encourage the employee to use these services
• Present the decision as irrevocable to avoid a challenge to the decision • Allow the employee to react
• Demonstrate dignity and respect • Offer support and compassion
• Maintain confidentiality • Encourage the employee to take positive actions

Preparing for the Meeting—It is important that the employees who have been selected for layoff understand the basis for the layoff. The consistency and truthfulness of the message that
you communicate to your employees explaining the rationale for layoff is important from a legal and emotional standpoint. Use the manager’s script (Tool #3), which explains the business
reasons behind the layoff in general terms—without getting into details of the individual selection decision—will provide a consistent message to all employees at time of notification.
Follow the steps below to plan for the separation meeting:
… Review Resources for Employee—Be sure to read and understand all of the information ahead of time that is being provided to the employee so that you can answer questions or know who to refer the
employee to.
… Plan Time and Location Logistics—Plan for the separation meeting to last no more than 10 to 15 minutes and conduct it early in the day (before 3:00 p.m.) if possible. Ensure that the meeting is conducted in
a private, neutral office area, such as a conference room, if possible. This can assist you in ending the meeting when appropriate and provide the affected employee with some immediate privacy afterwards. If
a personal meeting with the employee is not feasible, plan where and how the separation meeting will take place. Discuss this with your HR business partner. Try to arrange for someone—an HR person or
other manager—to be with the employee at the time of the notice if the meeting will take place by telephone.
… Decide on Transition Timeline—Decide when and how work will be transitioned, and also when and how the employee will remove personal effects and return company property. Remember, some
employees may continue work for some period after notice; for others, the date of notice may be their last day at work.
… Anticipate Emotional Responses—Be on the lookout for extreme behavioral reactions and seek assistance from the HR business partner, corporate security, an outplacement sonsultant, or Employee
Relations, if necessary. Notify HR before the conversation if there are any known sensitivities, such as the employee being on leave, previous emotional reactions to negative messages, family member(s)
working for the organization, or recent personal challenges. Attempt to manage a traumatic situation into a positive, forward-thinking situation through sensitivity, support, and encouragement. Do not try and
“soften the blow” by allowing the laid-off employee to think there is any chance of reversing the decision. See page 12 for more information on how to anticipate and respond to different emotional responses.
… Prepare Agenda—Set aside enough time prior to the meeting to not only prepare what you will say, but also how you will say it and in what sequence. Use the Manager Checklist and Script for Conducting
Separation Meetings (see Tool #3) as a guide.
… Rehearse—Rehearse (even role-play with someone) the flow of the meeting and the main points that must be made. This is a difficult conversation for all parties involved and it is critical to conduct it
effectively.

Important Points to Remember:

ƒ Don’t begin with small talk.
ƒ Don’t debate or argue about anything.
ƒ Don’t forget that the employee will forget much of what you say.
ƒ Don’t give personal, financial or legal advice.
ƒ If you don’t know the answer to a question, say you’ll get back to
them.
ƒ Don’t make promises.
ƒ Don’t allow discussion of any alternatives.
ƒ Don’t criticize the company.
ƒ Grievances and accusations from the past are truly history.
ƒ This is not the time for a performance appraisal.
ƒ Don’t be defensive or feel you must persuade the person the
action is justified.
ƒ However difficult the meeting is for you, it is tougher for him or
her.
ƒ It isn’t helpful to say “I know how you feel.”
ƒ Stay off the “blessing in disguise” theme.
ƒ Do not discuss your personal relationship with the employee—
arrange to talk about the “good old days” another time.
ƒ Own the message: don’t say it wasn’t your decision or that the
decision was someone else’s.

10 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #2: MANAGER CHECKLIST FOR PREPARING FOR SEPARATION MEETINGS (CONTINUED)

The following table provides ways to anticipate and respond to various employee emotional responses to separation meetings:

Over Control: Passivity: Grief:

Reaction Anger & Hostility Denial
No Reaction Stoic and Quiet Crying and Sobbing

▪ Hurt ▪ Guilt ▪ Vengeful ▪ Shock ▪ Sadness

▪ Disappointment ▪ Disbelief ▪ Controlled ▪ Numbness ▪ Worry
Potential Underlying
▪ Rejection ▪ Fear ▪ Suppressed ▪ Disbelief ▪ Grief
Feelings / Motivations
▪ Loss of Control ▪ Uncertainty ▪ Angry ▪ Confusion ▪ Fear
▪ Vengeful

Listen; acknowledge the
anger. Stay with the facts.
Be objective and give useful
information. Express
empathy. Refocus on
What to Do
outplacement support.
Do not apologize. Do not
argue, become defensive, or
blame management. Do not
What NOT to Do
shout back. Do not take it
personally. Do not discuss
other employees.
Be firm with the decisions
and the facts. Be empathetic
but be clear that the decision
is final. Be supportive but
clear. Focus on
outplacement support.
Do not bargain or engage in
the discussion of alternatives
that don’t exist; saying less is
often better.
Keep the meeting short and
focused. Encourage
questions and answer them.
Keep the tone businesslike.
Focus on the outplacement
support.
Do not force feelings to the
surface. Do not express how
they “should” feel. Avoid
filling the silence with talk
focused on you; this is about
them.
Recognize their shock and
offer to handle details later.
Focus on the written copy of
the separation to guide the
meeting. Gently describe the
career services being
provided.
Avoid being confrontational.
Ask questions to confirm their
understanding. Avoid filling
the silence with inappropriate
information.
Acknowledge sadness and
express empathy. Let the
person cry—have tissues,
water. Be okay with their
emotions and try not to be
uncomfortable with the
silence. Warmly
acknowledge the difficulty of
the moment. Schedule the
follow-up meeting.
Avoid insensitive advice like
“it’s not that bad” or “don’t
take it so hard.” Do not say “I
know how you feel” as you
don’t. Avoid the “blessing in
disguise” theme.

Stay calm and professional; it is acceptable to tell the employee that they are appreciated and have made a valued contribution to the team. Help them
Overall
understand the support they will be given.

For a customizable template version of this checklist, please double-click on the paperclip.

11 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #3: MANAGER SCRIPT FOR CONDUCTING SEPARATION MEETINGS

This tool provides managers with a clear script for conducting for the official separation meeting.

The meeting should last no more than 10 to 15 minutes. Try to stick with your prepared agenda and script as closely as possible. You may need to allow the employee a few minutes
alone after the meeting.
Business Decision:
• [Ask the person to sit down. Avoid small talk—get to the point.]
• “Because of disappointing financial results (give specifics), the company must take decisive actions to accelerate its turn-around strategy. These actions have been rolled out
throughout [time period] and are designed to enable us to focus resources on high-growth, high-return market segments, reduce costs, and drive profitable revenue growth.“
Impact and Release Date:
• Although significant other changes will be implemented to stabilize its cost structure, a key factor in the successful repositioning of the company to greater profitability is headcount
reductions. As a result of these business conditions, I regret to inform you that you will be laid off.”
• [Inform the employee of their last day.]
• [Suggested response if the employee asks why they were chosen for layoff as opposed to others: Do not give specific reasons—explain that the company has a reduction in force
selection policy and it was followed; all layoff decisions are reviewed by multiple levels of approval and the decision is final.]
Severance Benefits:
• “I recognize the affect that a layoff may involve. We will provide you with income and benefit assistance in accordance with company policy. The enclosed letter and attachments
identify your entitlements as a laid-off employee. In addition, there are a few items that I need to review with you that I believe will be important to you:”
• [Briefly review a list of key transition dates included with the written materials provided for the employee.]
• “This packet of materials provides important information about your pay and benefits, as well as the telephone number for who you may contact if you have any questions regarding
benefits. Be sure to read these materials carefully, and make sure your year(s) of service are correctly noted. The year(s) of service should be the years of service since your most
recent hire, rehire, or recall from layoff. Also, please verify your correct home address and phone number.”
Transition Plan:
• [Review the specific transitional items you want to discuss with the employee:
o How the transition of work is to be handled (if applicable—the job may be eliminated)
o When the employee will remove personal effects
o When the employee will return company property and materials (company ID/badge, laptop, corporate credit card, phone calling card, etc.)
o When the employee needs to complete their final time sheet/report
o When the employee needs to report final expenses incurred before the layoff]
• [Answer any questions raised.]
• [Review your organization’s termination checklist (which should be included in the materials for the employee) with the employee and the employee’s continuing legal responsibility to
protect company confidential and proprietary information after employment ends.]
Outplacement Support and Services:
• “Outplacement services are provided to individuals affected by a reduction in force as a benefit from the Corporation. An outplacement consultant will be meeting with you after our
discussion.” OR “An outplacement consultant will be contacting you in the next day or so regarding an outplacement workshop schedule and location. The most important thing for
you to focus on in the next few days and weeks is your career. I want you to come out of this making a good career move. That is why I want you to meet with the Outplacement
Consultant right away and take advantage of these services.”
Closing Statement:
• [Ask the employee if they have any questions. Listen and offer support, but do not show any signs or otherwise give any indication of a possibility of reversing the decision.]
• “If you don’t have any other questions, I want to thank you for your contributions, and wish you well in your future endeavors.”

For a customizable template version of this script, please double-click on the paperclip.

12 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #4: MANAGER CHECKLIST FOR POST-LAYOFF SURVIVOR RETENTION AND PRODUCTIVITY
Survivors often become less engaged after layoffs due to increased workloads, uncertainty about their jobs and the future of the business, and distrust of management. Managers are the
most effective driver of organizational commitment and thus need to be trained and supported in reengaging survivors to ensure a return to productivity. This communication guide provides
managers with an action plan to help engage and retain survivors after layoffs.

STEP 1: Understand the Layoff and Future of the Business—A reduction in force can be very traumatic for those who remain with the organization, so it is important to consider,
in advance, what you will tell your remaining staff, as well as when and how you will tell them. This conversation should be somber and serious in tone and should be held in a one-on-one or
small group setting. Follow the steps below to help survivors understand the layoff and future of the business:
… Explain the direction of the business and the specific actions that the organization’s leadership is taking to avoid future business challenges.
… Work with your HR Business Partner/Generalist to understand how this conversation may differ for particular individuals or workforce segments (those who worked more closely with those who are laid off may
react differently).
… Explain to employees what has happened and why (focus on the business rationale).
… Explain that departing colleagues will be taken care of (provide generalities of severance benefits but do not provide details of packages).
… Do not discuss specifics about individual employees.
… Announce that layoffs are complete as soon as possible. Be careful in the wording of the announcement to avoid setting expectations if additional layoffs are planned/being considered.
… Give employees a chance to express their feelings and ask questions. The types of emotions you can expect include anger, guilt, and stress.
… Remain visible and available to the “surviving” employees. Communicate an open door policy for any questions and concerns.
… Talk about any issues regarding changes to the day-to-day work of employees and the department.

STEP 2: Reconnect Employees to the Organization—After a layoff, surviving employees are often less engaged and, as a result, are less productive. To increase employee performance,
Council research indicates that emphasizing the connection between work and organizational strategy, stressing the importance of employees’ roles in promoting organizational success,
communicating organizational activities and management decisions that affect employees’ jobs, and stressing the importance of a culture of innovation and flexibility can increase
discretionary effort by up to 32.8%. Managers should take the following steps to continually reconnect surviving employees to the organization:
… Clearly articulate organizational goals and strategy (as soon as you have this information) and explain how your direct report’s role and responsibilities contribute to the achievement of these goals.
… Share as much information as possible with your direct reports about the changes in the organization and its future direction.
… Frequently encourage your direct reports to discuss organizational changes and their fears with peers.
… Continually stress the importance of innovation and flexibility at your organization, as well as other organizational values, to your direct reports.

STEP 3: Reward and Recognize Survivors—Reward and recognition programs can foster job attachment amongst surviving employees and serve as an effective buffer against survivor
turnover. While past reward and recognition tactics may no longer be feasible because of constrained budgets and poor organizational performance, non-monetary reward tactics can still be
used. Reward and recognition should remain an ongoing one-on-one and group conversation to show survivors that they remain important to the organization. Managers should take the
following steps to reward and recognize survivors:
… Focus all incentives around individual and group performance, understanding that company performance many not illustrate actual employee performance.
… Recognize that survivors are likely doing more work post-layoffs.
… Hold team-building activities to promote a positive work environment.
… Focus any financial incentives on the highest performing employees.
… Choose cost-effective productivity “perks,” such as flexible work arrangements, based on what your employees value.

13 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #4: MANAGER CHECKLIST FOR POST-LAYOFF SURVIVOR RETENTION AND PRODUCTIVITY (CONTINUED)

STEP 4: Support Survivors with Increased Responsibilities in Daily Work—Layoff survivors will likely take on some of the work from their departed colleagues. It is important for
managers to communicate how the layoffs will impact the day-to-day work of layoff survivors and provide support to them to prevent burnout. Managers should take the following steps to
support survivors with increased workloads:
… Immediately inform employees about any new responsibilities.
… Explain how their day-to-day work may change as a result of the layoffs.
… Identify what work is critical and what work can be completed more efficiently, then redefine processes and shift work accordingly.
… Identify opportunities for teamwork and sharing of work across multiple employees.
… Create a fun and enjoyable working environment with opportunities for social interaction.
… Promote existing benefit programs (health and wellness programs, discount meals, employee assistance programs, etc.), which your employees may not be aware of, to assist with stress.
… Continually analyze employee stress levels (see Tool #5: Manager Diagnostic to Evaluate Employee Stress Levels) and proactively work with employees to minimize problems before they occur.

STEP 5: Differentiate HIPOs—While most employees are less likely to leave the organization after a layoff due to fewer labor market opportunities, high potentials (HIPOs) are actually 10%
more likely to leave than the general population, yet they currently put in 21% more effort than other employees. This leaves organizations at risk of losing some of their most productive
employees. Managers should follow the steps below to differentiate and engage HIPOs through developmental opportunities:
… Work one-on-one with HIPOs to create or update their development plans to signal a commitment to their ongoing growth within the organization.
… Connect individual HIPOs with senior leaders for informal networking and mentoring opportunities.
… Provide high-risk/opportunity, highly visible leadership opportunities for each HIPO within his/her current role.
… Help all HIPOs to build a high-quality, job-focused internal network of colleagues.
… Allow and encourage all HIPOs to attend training courses (when possible).

For a customizable template version of this checklist, please double-click on the paperclip.

14 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

TOOL #5: MANAGER DIAGNOSTIC TO EVALUATE EMPLOYEE STRESS LEVELS

After a layoff, surviving employees are often required to take on additional responsibilities from departed employees. This checklist provides managers with an ongoing way to gauge employee
stress levels over time given increased workload after a layoff.

Please indicate whether you agree or disagree with each of the following statements when considering your direct reports. Responses that you answer with “agree” may indicate
increased stress among your direct reports. While the issue of stress management is complex (because it is often more related to the ways that employees respond to situations rather
than the situations themselves), the strategies in Tool #4 may help you take steps to address workplace stress.

Response
Observation
Agree Disagree
Direct reports are arriving later, leaving earlier, and/or taking longer lunches than usual
Direct reports have higher incidents of absenteeism and/or “sick” days
Direct reports take longer to complete routine tasks
Direct reports are producing lower-quality work
Direct reports often appear anxious or worried
Direct reports frequently ask questions and voice concerns about how to “get all of their work done”
Direct reports appear to have increased health problems (often expressed through informal conversations and absenteeism)
Direct reports frequently mention feeling “stressed”
Direct reports have trouble concentrating when you deliver instructions, guidance, or feedback (e.g., they frequently ask you to repeat
statements or forget key pieces of information)
Customer complaints about lower-than-expected levels of customer service have noticeably increased
Mistakes or accidents in the workplace have increased
Workplace morale is lower than it was several months ago
Work environment feels increasingly negative (e.g., working relationships between employees are strained)
Direct reports have trouble prioritizing assignments and strongly resist efforts to re-prioritize their workloads
Direct reports are hesitant or slow to incorporate manager’s and colleagues’ feedback into their work
Direct reports are resistant to any sort of change (in the workplace, operating procedures, daily work, etc.)

If you agreed with a majority of these statements, your direct reports are most likely experiencing high levels of workplace stress. Use Tool #4: Manager Checklist for Post-Survivor
Retention and Productivity to reduce employee stress and reconnect direct reports to the organization.

For a customizable template version of this tool, please double-click on the paperclip.

15 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.

 MANAGING LAYOFFS AND RE-ENGAGING SURVIVORS MANAGER TOOLKIT

NOTE TO MEMBERS: This project was researched and written to fulfill the research request of several members of the
Corporate Executive Board and as a result may not satisfy the information needs of all member companies. The
Corporate Executive Board encourages members who have additional questions about this topic to contact their research
manager for further discussion. The views expressed herein by third-party sources do not necessarily reflect the policies
of the organizations they represent.

PROFESSIONAL SERVICES NOTE: The Corporate Leadership Council (CLC®) has worked to ensure the accuracy of
the information it provides to its members. This project relies upon data obtained from many sources, however, and the
CLC cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, the CLC is not engaged in
rendering legal, accounting, or other professional services. Its projects should not be construed as professional advice on
any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate
professional. Neither Corporate Executive Board nor its programs are responsible for any claims or losses that may arise
from any errors or omissions in their reports, whether caused by Corporate Executive Board or its sources.

1
Gandolfi, Franco, "Reflecting on Downsizing: What Have Managers Learned?," SAM Advanced Management Journal (Spring 2008). (Obtained through ProQuest).
2
Chartered Institute of Personnel and Development (CIPD), "A False Economy? The Cost to Employers of Redundancy," (January 2009). (Obtained through
http://www.personneltoday.com/Assets/GetAsset.aspx?ItemID=7031)
3
Wells, Susan J., "Layoff Aftermath: Learn How to Minimize the Aftereffects of Layoffs," HR Magazine (November 2008). (Obtained through ProQuest).
4
Anderson, Porter, "Study: Layoff Survivors' Lament," CNN.com (24 August 2001). (Obtained through http://cnn.com). [Accessed 7 January 2009].
5
Behr, Suzanne M. and Margaret A. White, "Layoff Survivor Sickness," Executive Excellence (Date Unknown). (Obtained through ProQuest).
6
Author Unknown, "Don’t Expect Layoff Survivors To Be Grateful," Leadership IQ (10 December 2008).
(Obtained through http://www.leadershipiq.com/index.php/news-a-research-/recent-studies/150-layoff). [Accessed 16 March 2009].
7
Trevor, Charlie O. and Anthony J. Nyberg, “Keeping your Headcount When All About You Are Losing Theirs: Downsizing, Voluntary Turnover Rates, and the Moderating Role of HR Practices,”
Academy of Management Journal (April/May 2008). (Obtained through EBSCO).
8
Corporate Leadership Council, Driving Employee Performance and Retention Through Engagement, Washington: Corporate Executive Board (2004).
9
Leadership IQ, "Don’t Expect Layoff Survivors To Be Grateful"
10
Corporate Leadership Council, Driving Employee Performance and Retention Through Engagement.

16 CLC9431710 | © 2009 Corporate Executive Board. All Rights Reserved.