However necessary it may be, a layoff leaves a gaping possibility for damage at a hospital — particularly between leaders and staff. After employees have been reduced or cut, those who remain need assurance and impeccable leadership to maintain engagement, morale and patient satisfaction. Here are four tips to remember when considering or implementing a hospital layoff.
1. CEOs should show they have "skin in the game." Whether through a compensation freeze, reduction or foregoing a bonus, hospital leaders may want to consider how they can show commitment and empathy during layoffs. This display of loyalty may give the hospital a public relations advantage while improving relations with remaining employees.
2. Be accessible, available and visible. Although it is recommended, leaders do not necessarily have to forego pay to show investment in the hospital. Other gestures may prove their commitment while carrying a human element. "It doesn't always have to be tied to compensation," says Bradley Richardson, managing partner at Kaye Bassman International, an executive search firm in Dallas. "Just being visible and accessible is a key piece to it. Go beyond a town hall meeting. Realize there are aftershocks for those next few weeks after a layoff. Walk the halls and be willing to talk to employees about it," says Mr. Richardson. Some leaders may leave post-layoff work to human relations departments or other units in the hospital when they should step up to bat themselves.
3. Quell pre-layoff buzz. When the air is buzzing with rumors of layoffs or cuts, hospital leaders need to address concerns immediately. The worst thing leaders can do is tell employees there is nothing to worry about — and then make staff reductions a month later, completely shooting their credibility. Even if the reduction plan is not completely formulated, administration should quickly release as many details as possible. "If you leave it unaddressed for too long, people will begin to wonder if it's them. They'll begin panicking and considering looking for another position," says Mr. Richardson.
4. Stagger small layoffs — but not large ones. Laying off four or five employees over a quarter or two is reasonable. But in regards to mass layoffs, staggering is much more difficult. If a hospital is planning a series of layoffs, it is best to keep that information disclosed to avoid panic. "If you're making significant cuts — make them and don't look back," says Mr. Richardson, referring to shifting the focus from those laid off to those retained, who need assurance. Leaders should maintain a sense of calm and security, particularly for those employees that remain after the layoff and may still be fearful for their jobs.
Read more about hospital layoffs and employment:
- 10 Hospitals and Health Systems That Recently Announced Layoffs
- 5 Recent Healthcare Compensation Controversies
- 5 of the Biggest Hospital Employment Trends in 2010
1. CEOs should show they have "skin in the game." Whether through a compensation freeze, reduction or foregoing a bonus, hospital leaders may want to consider how they can show commitment and empathy during layoffs. This display of loyalty may give the hospital a public relations advantage while improving relations with remaining employees.
2. Be accessible, available and visible. Although it is recommended, leaders do not necessarily have to forego pay to show investment in the hospital. Other gestures may prove their commitment while carrying a human element. "It doesn't always have to be tied to compensation," says Bradley Richardson, managing partner at Kaye Bassman International, an executive search firm in Dallas. "Just being visible and accessible is a key piece to it. Go beyond a town hall meeting. Realize there are aftershocks for those next few weeks after a layoff. Walk the halls and be willing to talk to employees about it," says Mr. Richardson. Some leaders may leave post-layoff work to human relations departments or other units in the hospital when they should step up to bat themselves.
3. Quell pre-layoff buzz. When the air is buzzing with rumors of layoffs or cuts, hospital leaders need to address concerns immediately. The worst thing leaders can do is tell employees there is nothing to worry about — and then make staff reductions a month later, completely shooting their credibility. Even if the reduction plan is not completely formulated, administration should quickly release as many details as possible. "If you leave it unaddressed for too long, people will begin to wonder if it's them. They'll begin panicking and considering looking for another position," says Mr. Richardson.
4. Stagger small layoffs — but not large ones. Laying off four or five employees over a quarter or two is reasonable. But in regards to mass layoffs, staggering is much more difficult. If a hospital is planning a series of layoffs, it is best to keep that information disclosed to avoid panic. "If you're making significant cuts — make them and don't look back," says Mr. Richardson, referring to shifting the focus from those laid off to those retained, who need assurance. Leaders should maintain a sense of calm and security, particularly for those employees that remain after the layoff and may still be fearful for their jobs.
Read more about hospital layoffs and employment:
- 10 Hospitals and Health Systems That Recently Announced Layoffs
- 5 Recent Healthcare Compensation Controversies
- 5 of the Biggest Hospital Employment Trends in 2010