From layoff to CEO – lessons I learned along the way

In my late twenties, I worked as a government contractor for a subsidiary of Black & Decker. Without much warning, my unit’s contract was this accomplishedand I was given two options: either work for the recent employer at the rate he proposed, or remain on the employment contract without work.

Instead of leaving us in the lurch, Black & Decker leaders showed compassion. They gave me and my colleagues other opportunities and assigned an HR manager who helped us search for positions in other locations and firms.

Decades later, this experience has stayed with me. I’ve often thought about tech layoffs across the industry — especially how I’ve woven the lessons learned from that difficult situation into the company I’ve built over the last 25 years. Caring – not only empathy and compassion, but actually prioritizing the needs and well-being of employees – is something I have tried to instill in my leadership team and will serve you well as an employer as you navigate through layoffs.

Hire for wellness and long-term development

My company initially operated out of a basement as a start-up; it is now an established name in the ambulatory healthcare technology industry. Fortunately, in our 25-yr history, we have never had to perform mass layoffs. One way I dealt with this was to hire employees with a conservative and strategic approach. Here’s what I mean:

• Financial prudence: We operate with a conservative financial approach, providing a buffer in the event of economic downturns and supporting our team’s growth even during periods of slowdown. This financial responsibility minimizes the risk of layoffs and shows our team that we are invested in their long-term success.
• Don’t hire too quickly: We follow a strict policy that does not prohibit expanding the team if we do not have the financial security to support recent employees. This approach avoids unnecessary worker turnover, which wastes useful time and resources and reduces confidence in our decisions.
• Prioritize Team Fit: We imagine in finding the right fit – individuals who have the essential skills and align with the values, passion and drive that we bring to our work. This reduces turnover and fosters a more stable, engaged workforce that knows they will trust their colleagues and leaders.
• Focus on long-term potential: We go beyond CVs and qualifications to assess a person’s growth potential personally and inside the company. Someone who has aspirations and a desire to learn can make a much greater impact than someone who only has hard skills. These employees can evolve, and so can our company.

Be an empathetic leader

When you care, your employees can feel and see it, and your culture will thrive on it. Empathy is extremely vital. The recent wave of layoffs in the tech industry is a stark reminder of the human costs associated with financial decisions. The economic landscape will at all times be uncertain, but leaders who care about their employees will navigate difficult decisions and difficult times by prioritizing emotional intelligence and empathy.

While downsizing is difficult for many firms, a strategic approach focused on empathy can significantly soften the blow. Remember that empathy is not only about understanding one other person’s pain – it’s about translating that understanding into motion. It’s also about recognizing the human element in the whole lot we do.

Losing my contract at Black & Decker was difficult, but it took just a little little bit of effort to point my colleagues and I in the right direction, and that great example has stuck with me for almost 30 years. As leaders, do not forget that our teams rely on us for guidance and real support. Our team is our best asset, and empathy is the fuel that keeps them at their best and may also help soften the blow if the company has to deal with downsizing.

Never forget the value of your team

My experience at Black & Decker left an indelible mark, shaping my approach to leadership and worker relations today. While it is probably not feasible to replicate their extraordinary efforts in every case, the basic message stays: empathy is a strategic advantage, not only a detail. This lesson became the cornerstone of my leadership philosophy, influencing every decision and interaction inside the company. This taught me that empathetic leadership creates an environment where employees feel valued and understood, which fosters an invaluable sense of belonging and engagement. Likewise, by exercising financial prudence, prioritizing long-term growth through strategic hiring practices, and fostering a culture of trust, firms can completely minimize the need for layoffs. This strategic combination of monetary foresight, empathetic leadership and a commitment to worker well-being lays the foundation for a resilient and thriving organization.

This approach increases worker loyalty and attracts the best talents who increasingly value corporate ethics and company culture when selecting a recent position. Your employees are the foundation of your success – let’s strive to create a business environment where hiring for success and acts of compassion turn into the norm.