As the COVID-19 crisis continues to disrupt the U.S. economy, the decline in employment affecting small businesses and large corporations is staggering. Many companies probably entered March feeling they could weather this storm and are now experiencing or bracing for major impacts to their business and additional impacts on their labor and human capital needs.
While every company has unique circumstances, for the most part Americans can understand why airlines, hotels, restaurants and others are universally struggling. Soon, however, industries that seem to be less-obviously and less-directly impacted will follow suit – harmed by the continued slowdown of the economy, sustained business closures, and weakened consumer demand. And while layoffs and furloughs may be unavoidable, how you do it says a lot about the character of your company and its leadership.
In a memo to clients, Purple looks at considerations that would affect how layoffs and furloughs might impact long-term impact to corporate reputation, such as:
– The size of your company and its perceived economic strength pre-COVID-19
– How you announce layoffs or furloughs
– How outgoing employees are treated
– What other business decisions were recently or simultaneously announced
– What your leadership is saying and what sacrifices they may be making themselves
– What your competitors are doing
For more, read the complete memo on labor, layoffs and reputation from Purple managing director Rory Cooper. If you have questions or want a sounding board on issues you are confronting in the COVID-19 health crisis, please don’t hesitate to reach out to Rory, Nick Maschari, or another member of the Purple team.