Sorry, You’re Fired. Sorry Again.

Use a softer approach for layoffs

It’s a well-worn method for giving someone the boot: deliver the news in a no-nonsense style and tell the unlucky soul to clear his or her desk before lunch. During his 40 years in industry, writes Allen Questrom Professor and Dean Ken Freeman in Harvard Business Review, he’s seen plenty rely on the tough-guy routine—and thinks it’s had its day.

“It can alienate surviving employees, anger customers and suppliers, and destroy shareholder value,” writes Freeman in “A Guide to Being Compassionate During Layoffs.” “Leaders can avoid, or at least greatly minimize, these repercussions by taking what I call a ‘soft hands’ approach, treating important constituents with consideration and compassion.”

Freeman—who was CEO of Quest Diagnostics when the company acquired SmithKline Beecham Clinical Laboratories, forcing significant layoffs—offers four principles for making more compassionate cuts. The first is to “treat employees with dignity, fairness, and respect,” giving them as much information as possible and helping them find new jobs. He also advises keeping customers in the loop (but standing your ground if any try to block cuts) and managing “the closure or layoff like a project” by appointing a dedicated project team.