Throughout the years I’ve heard horror stories about lay-offs, firings, restructuring, and so forth. Some of the more common stories include:
• Company lay-offs being discussed for months among top management, but denied for just as long to the employees.
• Sudden restructurings that require placing employees out-of-state with virtually no warning,
• Security guards escorting long-term employees off the premises immediately following their lay-off.
• Refusing to give employees any advanced warning about possible layoffs out of fear they may begin to look for another job.
I have no doubt that many people have either experienced these happenings first hand, know of someone who has or have witnessed these occurring. Anyone who has been in any of the above situations knows they are quite painful. Working with a company for many years only to be escorted out of the building following a lay-off is one of the most non-relational practices around.
Many companies keep lay-offs secret and require security escorts because they think they are protecting their company. They believe that being honest about company lay-offs is unwise. They also believe that allowing an employee to remain in the building unsupervised for any extended time could be unsafe.
Companies couldn’t be further from the truth, in my opinion. The idea that lying to your employees is a wise decision is, frankly, crazy. Running a business through fear is a losing proposition. I believe that treating long-time employees as though they are suddenly unsafe to the company actually creates an unsafe environment—it fosters anger, shame and resentment.
When managers and owners lie about impending lay-offs and restructurings, they teach employees that the company cannot be trusted. In today’s climate, employees often can read the signs of a lay-off far in advance. Because they see the signs, many, in fact, ask if layoffs are coming. But some employers still deny lay-offs until the very day they occur. They give very little warning and no chance for employees to make any plan for themselves and their families.
Keeping the possibility of a lay-off a secret is like the proverbial pink elephant in the living room phenomenon: everyone sees it, but pretends it’s not there. This is just as unhealthy in business as it is in families. It’s crazy making.
Running a business out of fear will slow your business success. Lying to your employees is a poor business practice. Lying leads to mistrust and breaks the hard won loyalty between employee and company. Although lying may save you a difficult conversation in the present, in the long run it will tarnish the entire company atmosphere. If the company is only out for itself, the employees will feel this and, likewise, become all about themselves. The healthiest, and often most successful companies, dare to be honest throughout the most difficult of processes. They trust that they hired the top people for their jobs and as such trust them with the truth. Leading from fear is poor leadership. It will just create a toxic work environment and eventually will hold back profits. Dare to treat adults as adults. Dare to be authentic with your employees and watch their loyalty increase. Keeping secrets is simply unhealthy—at home and in business.
Challenge: If you run a company or manage a team, begin to look at your level of honesty with those who work for you. Dare to have honest conversations with people in whom your company believed enough to hire. Watch what happens.