Nurse Leader Tips for Layoffs

By Rose O. Sherman, EdD, RN, NEA-BC

One of my former students recently told me that she anticipates that there could be staff layoffs in her organization in response to decreasing patient volumes. Her organization is not alone in planning strategies to deal with the economic losses that are being experienced in a rapidly changing healthcare environment. A recent story in Fierce Healthcare highlighted the challenges of a Virginia hospital system where staffing layoffs are expected to begin soon. For most nurse leaders such as my former student, this is unchartered territory as a leader. She has spent most of the past decade worrying about having enough staff yet may soon be faced with the challenges of laying off some great nursing staff.

We know from healthcare research that employee morale and engagement are key factors in customer service and improved patient outcomes. Layoffs are inevitably painful and stressful yet if an organization has used every other approach to reduce costs, they may be needed in some situations to maintain financial solvency. How a nurse leader manages the situation is crucial both to those who leave and to those who stay. The following are some dos and don’ts from human resource experts.

The Dos

1. Follow the directions given by your HR Department – There are usually explicit policies that are established during layoffs regarding seniority, outplacement and notice. Nurse leaders may be tempted to deviate from these policies if they feel it is in the best interest of employees but this is not the time to do this.

2. Be visible – Staff will have questions and want reassurance. It can be difficult to control your own emotions as the leader but it is important that you work hard to do it. You may not have all the answers but shutting yourself in your office will cause more anxiety in staff.

3. Communicate openly and often – It is critical that you share information widely as soon as it becomes available and you are authorized to share it. When staff lack information, they sometimes belief the rumors that are spread in a time of stress whether correct or incorrect.

4. Expect an emotional response – Anger, concern, insecurity, guilt and depression are perfectly natural emotions during a time of layoffs. These feelings are not only experienced by those who are laid off but also by those who survive the layoff. It is crucial for managers to spend time reassuring employees that it is OK to feel this way or these feelings may release in non-productive ways.

5. Express value and appreciation for service – In most layoff situations, there is a need to layoff staff who have made significant contributions to the organization. It is important to emphasize that the layoff is not a personal failure and that the nursing staff member has valuable professional gifts.

6. Provide references in a very timely manner – If appropriate, reach out into your networks to learn of opportunities that might be available for staff who are laid off.

The Don’ts

1. Don’t sugarcoat or minimize the situation – Layoffs are stressful and difficult situations. Straightforward communication and authentic concern are critical not only for those losing their jobs but for those staff who survive layoffs.

2. Don’t promise job placement assistance or personal help that you can’t provide – It is essential as a leader that you don’t make any promises that you can’t keep. To do so is a further violation of trust.

2. Don’t criticize the upper level management team – The decision to lay staff off should be a last resort in an organization after other measures such as hiring freezes, reduction of overtime, a reduced workweek and cross training are implemented. Even when there are no other good options, staff are likely to question the decisions of upper level management. Avoid the temptation to participate in this criticism even if you have concerns about how the decisions were made.

4. Don’t convey a layoff message by email – Nursing staff work various shifts. Ideally, all staff affected should be informed at the same time but if a staff member is not present – the message should be delivered personally when possible.

What happens after a layoff is largely an outcome of how staff perceives that it was managed. A key to long term staff morale is trust in management. Your actions need to demonstrate that you consider your staff to be your most important asset. The key to driving out fear is to give staff as much information, compassion and control as you possibly can.

Read to Lead

Varelas, E. Human Resource Blog 10 Strategies for Dealing with Layoffs