Did you hear about the recent faux pas the HR VP at Carat, Aegis Group’s media-buying company, committed?  I read about it in the article, Carat Missive Goes Astray, in the Wall Street Journal. Basically Carat’s senior management team had been preparing materials to announce a restructuring, including significant layoffs. Instead of sending the working drafts of the communications to its intended audience of select few, the VP of HR sent it to the entire company. It was recalled by the IT department, but the damage was done. In fact, the messaging documents have made their way outside the company and even been published online by Advertising Age.

Yikes! My initial, knee-jerk reaction was not unlike those who posted messages in response to the AdAge.com article. How careless? How could she? It immediately reminded me of a similar situation. In August 2006, RadioShack communicated layoff announcements by e-mail. Approximately 400 employees walked into work on August 29 and received the following message in their inbox: “The workforce reduction notification is currently in progress. Unfortunately your position is one that has been eliminated.” 

However, having been the author of layoff messaging in a past life, and one of a handful of individuals with the technical permissions to distribute company-wide e-mails to several thousand employees, I quickly began to empathize with Carat’s VP. After all, one false slip of a keystroke and that could just as easily have happened to me. I don’t believe she maliciously distributed the draft documents by e-mail in advance of a planned formal announcement. It was most certainly an accident.

And that’s when it struck me. The RadioShack and Carat layoff situations are actually quite different. Though both companies, it appears, developed thorough communications plans and messaging to share the unfortunate news, RadioShack purposefully chose e-mail as its method for making the announcement. RadioShack’s decision to alert affected employees that their positions were eliminated by e-mail resulted in a number of not-so-positive headlines.  RadioShack defended its actions saying it had forewarned employees at its Fort Worth headquarters about the impending layoffs and that they had told employees they would learn about their job status via e-mail.  Given the open office environment, RadioShack felt it was the best way to preserve the person’s privacy and dignity, as opposed to walking through cubicles and tapping people on the shoulder to call them into the office.

Many of the outplacement experts cited in the numerous articles written on the topic said the approach was inappropriate. In a New York Times article, Derrick D’Souza, a management professor at the University of North Texas, said he had never heard of such a large number of employees being notified about a layoff electronically.  He said it could be seen as dehumanizing.  “If I put myself in their shoes,” Mr. D’Souza said.  “I’d say, ‘Didn’t they have a few minutes to tell me?”’

I believe most workers have come to accept that workforce reductions are part of the normal course of business.  While it still won’t be easy for the employee being let go, the person delivering the news, or those left behind, taking a timely, honest, personal approach will do a great deal to minimize animosity.  No matter how large or small your organization is, creating a cohesive internal communications plan that addresses how, when and to whom you’ll make your announcements will allow you to coordinate the organizational changes face-to-face affording employees the dignity they deserve.

As you would expect, Carat has received some harsh criticism in the press.  While it’s still too early to tell what the exact fallout will be from the Carat VP’s mistake, I doubt it will be much more than a stomach flip at the thought of it happening to you and a reminder to always double and triple check the To:, Cc: and Bcc: boxes of your e-mail when distributing sensitive documents.  RadioShack on the other hand continues to serve as a good example of how not to communicate workforce reductions to employees.

Jessica Elliott
Marketing Director
ClearEdge Marketing

This entry was posted on Thursday, October 30th, 2008 at 4:56 pm and is filed under Communication Best Practices. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.