Sending Staff on Furlough? Leaders, Keep These Things In Mind

The true test of leadership shows up in crisis. As companies are going bankrupt, industries are shutting down, and negative news is adding to the panic, and certainty is far from sight, this is the time for leaders to show up and talk. One of the tough jobs is to communicate with those who are going on furlough or leave without pay. The usual way is to send an email crafted by the communication team and vetted by the lawyers so that you are legally safe. Is this the best and only approach? No! Then, what should you do? Let me help you with it.

1.Make them Your Partner

If your company is going through financial distress, then you may not have the resources to continue paying your people. However, you have a choice to make them feel how important they are. Treat them as if they are your partner. Be transparent, let them know what challenge you are facing and what steps you have taken. Also, seek ideas for sailing through the crisis. The people on the ground, have a different understanding of business than those in the boardroom. You may be surprised by their ideas.

2. Lead by Example

Before the employees are sent on furlough, I recommend the management team to commit working without pay. In a corporate structure, the energy flows from the top and when you do that, your conviction and commitment will reflect in your body language and words.

3. Stop Being Defensive

The worst thing you can do is to avoid the interaction. When you evade questions or stop facing people, even your positive actions will be looked through the filter of suspicion, that will only add to the grapevine. So, take the lead and handle it powerfully. Instead of writing an email, do a web call, or send a video message. A video call or message is more personal and people catch more through body language than typed words. Give them clarity about their past dues, bonuses, increment, and promotions. A simple assurance that their job is safe and they will join back after the business resumes, will go a long way.

4. Sponsor Self Development Programs

There are plenty of high-quality online programs available at a minuscule price. Give them access to the programs which can help him become more valuable for business and manage change smoothly. You may also offer online psychological counseling, yoga sessions, fitness programs, and diet guidance. These small investments will show that you care for them and will have enormous emotional ROI in the long term.

5. Stop Being a Company, Become a Community

Henry Mintzberg in a Harvard Business Review article writes, 'Community means caring about our work, our colleagues, and our place in the world, geographic and otherwise, and in turn being inspired by this caring.'

So, let people go beyond their job titles. Encourage them to seek and offer help with each other. Motivate them to treat others as a human being instead of a superior or a subordinate. Ask the HR team to identify those who need additional support and invite people to offer help.

6. Stay in Touch

Even if the people are on leave, have a plan to keep them connected with the company. Schedule a fortnightly group video call for each team. Keep it informal. Let them share their life. Use these calls to galvanize support for those who need additional support. Update them about the industry developments and the company's future plans.

7. Don't Delay

If you haven't taken an action yet, stop analysis paralysis, now. You have a fair idea about your reserves, business operation, and future course of action. Taking a timely decision will not only help you and your people plan better but it will only add to your brand equity as a business.

So, leaders don't get blinded by the stock market crash and the spate of pessimism. This is the time to reflect on the gaps in your business model and operational processes. This is the time to get your enterprise agile and your people equipped to sail through future crises.

What are you doing differently on people front, I would love to know.