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Announcing Job Terminations: When Transparency Makes All the Difference

Written by Leduc RH | Nov 6, 2024 6:15:17 PM

Layoffs are sensitive moments for all stakeholders, but even more so for impacted employees. While employers often seek to provide rational and legitimate explanations to justify these decisions, these explanations may not always suffice to ease discontent or prevent negative reactions. One primary reason for this frustration is the perception that, despite explanations, the employer lacks transparency or consistency. According to a study published on ResearchGate, this perception plays a central role in how employees react after layoffs, particularly regarding perceived justice and resistance behaviors.

 

The Importance of Informational Justice

This study describes informational justice as employees' perception of the transparency and quality of the information provided by the employer during significant decisions, such as layoffs. In other words, it concerns whether employees feel that the reasons given for their layoffs are sufficient, clear, and honest. Companies that prioritize effective communication can hope to ease some of the resentment that often accompanies such decisions.

However, providing clear and logical explanations is not always enough. Even if the employer offers valid justifications, the level of trust between employees and the organization plays a determining role. This is where the notion of consistency in the employer's actions becomes critical.

 

Consistency of Actions as a Key Factor

Consistency between the employer's words and actions is essential. When employees perceive that their employer acts in line with its values and promises, they are more likely to accept difficult decisions, such as layoffs, even if they are directly affected.

In the context of layoffs, this consistency plays a crucial role in how explanations are perceived and how employees react. When explanations are considered fair and the employer has demonstrated a degree of consistency in its behavior, employees are less likely to respond negatively. Conversely, if the employer is perceived as inconsistent or unreliable, explanations alone will not prevent feelings of betrayal and resistance behaviors.

 

How Are These Resistance Behaviors Manifested?

When employees perceive injustice or a lack of transparency from the employer, they may express their dissatisfaction in various ways, often subtle yet significant:

Decline in Engagement and Morale

Disengaged employees invest less in their work, may adopt a passive attitude, doing only the minimum required, or express a total disinterest in their responsibilities. Absenteeism and tardiness become more frequent, indicating a loss of motivation

Spread of Cynicism

Criticism of management becomes more frequent, and negative conversations increase. This cynicism can spread within the company, degrading the work environment and weakening organizational culture.

Withholding Information

Frustrated employees may choose not to share important information or job-specific knowledge. This passive behavior disrupts internal processes and reduces collective efficiency.

Resistance to Change

Remaining employees may actively oppose new initiatives or organizational changes. They may ignore directives or subtly sabotage projects, slowing the company's progress.

Direct or Indirect Sabotage

In extreme cases, some employees may adopt more severe behaviors, such as data falsification, intentional errors, or even damage to equipment.

Voluntary Departure and Talent Drain

An environment perceived as unjust may push the most talented employees to seek opportunities elsewhere, further weakening the organization, which loses skills and expertise.

Defamation and Reputation Damage

Discontented employees may publicly criticize the company, especially on social media or employer review platforms. Such negative testimonials can tarnish the company's reputation, making it harder to attract new talent.

Increased Internal Conflicts

After layoffs, tensions may arise among remaining employees, particularly due to unequal workloads or perceived injustices in treatment. This can lead to disagreements or open conflicts within teams.


 

 

How Can Employers Prevent These Behaviors?

 

Act with Transparency and Consistency

Transparency, accompanied by consistent actions, is essential to prevent resistance from taking root. Communication should be ongoing and not limited to critical moments like layoffs.

Acknowledge the Impact on Remaining Employees

Recognizing the emotional impact layoffs have on remaining employees is essential. Providing spaces for exchange, support groups, and professional counseling can help ease tensions and reduce feelings of guilt.

Remobilize Teams Around a Shared Vision

After layoffs, it's important to re-engage employees around a common project and remind them of the company’s direction. Leaders should give purpose to the work of remaining employees, value their contributions, and involve them in the organization’s vision for the future.

Show Consistency in Actions

Consistency between words and actions is paramount. Employers must not only communicate transparently but also act fairly. This consistency is demonstrated through concrete gestures, such as equitable task distribution or active support for remaining employees.

 

Conclusion: More Than Explanations, Consistency is Essential

The study highlights a fundamental aspect of managing layoffs: explanations alone are insufficient if not accompanied by a genuine climate of trust and consistency. Companies must understand that how they are perceived by employees plays a determining role in how employees react to difficult decisions. By fostering a climate of transparency and consistency, employers can not only reduce resistance behaviors but also strengthen long-term resilience and team commitment.

Ultimately, the employer's consistency is a central pillar in maintaining a healthy organizational culture, even during the most challenging times.