Leading through ambiguity: How to Address Concern and Distraction in Times of Layoffs

Layoffs are becoming increasingly common in today’s corporate environment, particularly in the wake of the macroeconomic uncertainty that we find ourselves facing at the moment.

Recent headlines have shown that cutbacks have been taking place in some of the largest tech companies in the world, including Amazon, Salesforce, Meta, Twitter, Coinbase, and many more.

At time like this, all companies will be scrutinizing every aspect of their balance sheet. And whether you like it or not, employees show up as an operating cost, which can lead to rounds of layoffs and redundancies.

While these business decisions are necessary for the survival and growth of a company, they do create a sense of ambiguity and uncertainty for both leaders and employees alike.

Whilst I empathise deeply with those that are directly impacted by the layoffs, this article is focused on leaders who are left behind after a round of layoffs or who work in the general industry that this is happening in.

For example if you are working in the tech industry right now (whether your company has been impacted by layoffs or not) there is a lot of ambiguity and uncertainty about the future and stability of roles.

This article will focus specifically on the leadership aspect of navigating these challenges and provide strategies, best practices and tips for leaders who are leading their teams through this difficult time.

The impact of uncertainty on your employees

Whether it is happening in your company, or just your industry in general, layoffs and uncertainty can take a toll on your employees both emotionally and psychologically.

Stress and anxiety are common feelings that may arise when faced with the possibility of losing a job or not knowing what the future holds. This can lead to decreased productivity as employees may struggle to focus on their work.

The impact of layoffs and uncertainty doesn’t just affect individuals, it can also have a ripple effect on the entire team. Low morale and motivation can spread quickly and negatively impact the overall dynamic and performance of the team. This can make it even more challenging for leaders to lead effectively.

It’s important to remember that employees are human beings, not just assets to a company. The emotional and psychological impact of layoffs and uncertainty should not be underestimated and you as a leader will need to be prepared to support your team through this difficult time.

The impact of uncertainty on you as a leader

Ultimately when there are layoffs happening in your company or industry it creates a level of ambiguity, worry and uncertainty for many people.

As a leader, navigating that ambiguity and uncertainty can be incredibly challenging. Not only are you dealing with the same feelings of stress and anxiety as your employees, but you also have the added responsibility of leading your team through this difficult time.

One of the biggest challenges leaders may face when trying to lead a team through ambiguity and uncertainty is effective communication. With so many unknowns and questions floating around, it can be hard to know what to say and when to say it. This can lead to confusion and frustration among the team.

Another challenge is maintaining engagement and motivation. With the uncertainty and ambiguity, it’s easy for employees to become demotivated, distracted or disengaged. It can be hard to keep them focused and productive, especially if they are preoccupied with their own concerns.

It’s important to remember that you are not alone in this, and there are plenty of strategies and best practices that you can implement to mitigate the impact of ambiguity and uncertainty on your team…

Leadership Skillz - Strategies and Best Practices

When leading through ambiguity and uncertainty, it’s important to have a set of strategies and best practices to fall back on. Here are 9 best practices with practical examples for you to think about:

1. Communicate regularly and transparently with the team — Keep them informed of any updates or changes that may affect them, even if you don’t have all the answers yet. Example: hold a weekly team meeting (or allocate time from your existing meeting) to provide any updates on the company/industry that you are aware of and field any questions that the team may have
2. Talk to each team member individually — whilst it is important to keep the team appraised of the situation and communicate to the wider group, it is also important to talk to each of your employees individually. What concerns one person will be very different to what concerns someone else. Having a regular one to one conversation with your team members is essential. Example: set up a weekly one to one session with each of your team, spend at least some of that time dedicated to how the employee is doing/feeling
3. Build trust and foster open and honest communication — This will help to create a sense of security and stability within the team during uncertain times. Example: create an anonymous suggestion box for employees to share their concerns and ideas, and make sure to address and act on them in a timely manner
4. Provide support and resources for employees dealing with stress and anxiety — make sure employees have access to counselling services or other resources to help them cope with the uncertainty/stress. Example: if your company has an existing Employee Assistance Program (EAP) then make sure your team are aware of how they can access that service. If it does not have one then speak to your HR teams about what services the company can provide that might help. Note — as a leader, your role is not to provide counselling services to your team although it can often feel like it is. There is definitely a role that you do play in helping your team through uncertainty and stress but you are not a professional counsellor and you need to maintain a clear boundary between what you can do in your capacity as a leader, and what you cannot/should not do
5. Focus on employee development and skills building — this will help to keep employees motivated and engaged, and will also position them well for future opportunities. Example: Co-create an ‘individual development plan’ with each of your employees that has practical actions that they can take to develop skills and competencies that will help them in current or future roles (inside or outside of the company)
6. Acknowledge that you don’t have all the answers — it is ok for you not to have all the answers providing you are being upfront and transparent about it. Example: share with the team what you do know (and are allowed to share) but be clear about what you do not know. You should not speculate on what may or may not be happening within your company/department.
7. Do not let your own fears or worries impact your team — it is ok for you to feel the same ambiguity and concerns as your team feels, in fact its natural. However, your team are looking to you as a leader and a role model so its important that you act accordingly and don’t fan the flames of their concerns by sharing your own worries. Example: in group or individual meetings, acknowledge the situation and empathise appropriately but do not to let your own emotions or fears spill over into that conversation.
8. Create a sense of normalcy — it is important that you ensure that the business carries on regardless of everything that may be taking place around you. The more you let distraction distract from the day to day, the more ambiguity and uncertainty you will create. Example: maintain regular team meetings, keeping up with team-building activities, and setting clear goals and expectations.
9. Focus on your emotional intelligence — Being a leader in times of ambiguity and uncertainty can be incredibly challenging, and it’s important to take care of yourself as well. This means being aware of your own emotions and reactions, and managing them in a healthy way. Example: take time to understand more about yourself and your emotions. You could take an online EQI test to better understand yourself and create an action plan for you to develop in the areas that you deem most appropriate. This will not only help you lead better but also be a good model for your team to follow.

Summary

Layoffs and uncertainty can have a significant impact on both employees and leaders. As a leader, it is important to remember that your employees are human beings and that the emotional and psychological impact of layoffs should not be underestimated.

By implementing strategies and best practices such as effective communication, transparency, and emotional intelligence, you can do your part to mitigate the impact of ambiguity and uncertainty on your team.

It is also important to remember that as a leader, you are not alone in this. The challenges of leading through ambiguity and uncertainty can be difficult, but by staying informed and utilizing the best practices outlined in this article, you can navigate this difficult time with confidence, and support your team through the challenges ahead.

In the end, as a leader it is important to remember that, as much as possible, you must focus on what you can control and let go of what you can’t. Be open, be transparent, be there for your team, and lead them through this difficult time with empathy, compassion, and understanding.

I hope you found the information in this article useful and I wish you continued success on your leadership development journey

Ian

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