I subscribe to a number of Engineering Manager tools, among them a mailing list called PMClinic. The format over at PMC is that the moderator posts a "situation" each week, then all the PMs on the list chime in with what they think is best. This week, the situation was [paraphrased]: How do I keep my team focused when there have recently been layoffs and everyone's nervous that they might be next?
There are a lot of bright folks on the group, and I always manage to learn something. This week, I guess, was my turn to be smart, as several people replied to me off-list saying that they really liked my answer. One suggested that, if I had a blog, I should post it.
So here it is.
On Jan 26, 2009, at 10:07 PM, [PMC Moderator] wrote:
[Heavy snipage]
> Here is this week’s [...] situation:
> I’m working in one of the many company that announced layoffs [...]
> Management has stated that the best way for us to guarantee future employment is to ship on time [...]
> The team is confused and frankly concerned that they will lose their jobs over the next year [...]
> How do I re-assure the team and keep them focused on shipping a great release for our customers?
[My reply:]
A lot of managers (and companies) take the approach that they do what's best for the company and, if employees get roughed-up, well, that's too bad.
A smaller number of well meaning but equally misguided managers take the approach that they do what's best for their employees and, if the company gets roughed up, well, that's too bad. (This is similar to the "I'm not going to make the mistakes with MY kids that MY parents made!" approach to parenting, and has similar results ;)
I'm of the opinion that a manager's job is to do what's best for the company. I'm also of the opinion that what's best for the company is often to do what's right by the employees. This stems from the idea that recruiting and keeping top talent is the single most important thing a person can do at a company and, if you treat your employees like crap, you're shooting yourself in the foot.
So, given all of that, it seems that you have to be realistic with your employees, but also let them know what things they can control and how they can control them to their own best outcome. You can also let them know -- and I think this is your obligation, not just to them, but to the company, too -- that "some people are more comfortable with certain kinds of risk than others, and those people have to decide for themselves how best to move forward.
For some people, you can help them do things to remain employed. For others, you can help them do things to find other employment, either within or without the company. For still others, you can let them know that you think that this career-path may be more risky than they're comfortable with and guide them to another path.
Skip the layoff part for a minute. A good manager should be helping their employees develop their careers, anyway. This includes personal and professional growth, and and various forms of layoff-proof-ing, including making it easy to find the next job, if the need arises. Some people hate when I say this, but I always tell everyone I care about that they should try to interview 1-2 times a year, whether they're looking for job or not. It's good practice, and it keeps you in touch both with your worth and with what The Market finds valuable (whether or not you have it.) Plus, improves your ability to recruit and retain top talent by teaching you better interviewing techniques from both chairs -- win-win! :)
Ok, back to your layoff situation: do the same thing. Help your employees develop and manage their careers, in all the ways that that entails. Maybe they'll get laid off, maybe not. Maybe YOU will. There are no guarantees -- it's all just a sliding scale. Teach them that they should be constantly aware of this both in fat times and in lean. Simultaneously, demonstrate through your actions how The World's Best Manager treats his top talent whom he hopes to retain.
...Then let the chips fall where they may. You've done your best; no sense sweating stuff after that!
---
Fun exercise: find 3 talented people you know personally who have been laid off in the past year, but more than a month ago. Ask them how it affected their lives. My experience is that you'll hear something along these lines: "at first it was a bit scary, because I wasn't prepared, but it turned out to be the best thing that's happened to my career in a LONG time!" (NOTE: doesn't work with less-talented people, or those with less marketable skill sets. ;)
"Luck favours the prepared..."
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