RIF Survivor’s Checklist: Is Your Company Running on Hopium?
Originally a thread on X/Twitter:
Many companies went through a major layoff in 2022. Many more will reduce their staff in 2023.
When the dust settles, businesses will be leaner but challenges will still remain.
Here’s a valuable checklist for survivors:
In 2022, the most commonly used 3 letter word at companies has been “RIF”.
RIF stands for “reduction in force” and in layman terms is known as a layoff.
Companies everywhere are announcing RIFs including high-profile, household-names. Very few companies are immune.
This should be expected given the state of the economy, inflation, the labor shortage, supply chain issues and the increased cost of capital.
Many businesses are slimming their workforces as an important step in right-sizing their cost structure to reflect the environment.
What follows is a short “checklist for survivors” that I’d recommend ticking through if you’ve survived a RIF.
It will help you determine if your Leaders have done the basics right and if more cuts could be on the horizon.
THE PLAN
Watching how Leadership communicates post-RIF is revealing.
Is Leadership being transparent about what happened, why, and what’s likely to come next?
Is there remorse for RIFed employees?
Is there a new vision that’s strategic, tactical and believable?
If there’s a RIF without communication focused on helping survivors understand why everything is going to be OK then everything is probably NOT going to be OK.
A RIF without a post-RIF plan is mere Hopium.
RUTHLESS PRIORITIZATION
After a RIF, Leaders must ruthlessly define and allocate resources to only the top company priorities.
There are things Leaders have to say no to because asking a reduced workforce to “do more with less” is a long-term bankrupt strategy.
Cutting people without cutting projects is a major sign that Leadership could be in over their heads. Staging ambition is a sign that Leadership is willing to make difficult decisions in difficult times.
A RIF without ruthless prioritization is mere Hopium.
THE POST-RIF ORGANIZATION
Once the full impact of a RIF is known, it can be very revealing to look at the post-RIF organization and future staffing plans.
It’s usually not difficult to assess whether the organization is set up for success.
It’s a good sign if the most talented people survived.
It’s a good sign if a new org design reflects the new priorities.
It’s a good sign if attrition can be replaced and specific open roles can still be filled.
A RIF without the right post-RIF organization is mere Hopium.
NEW RESPONSIBILITIES
Sometimes, RIFs are an opportunity for less-experienced employees to take over responsibilities that otherwise would be unavailable to them in a larger team.
This can be good in small doses but it can be bad if it’s the rule rather than the exception.
Promotion through attrition is healthy when the top talent is being challenged to learn new skills quickly.
But challenging everyone in the rank and file at the same time is a recipe for disaster.
A RIF without the right post-RIF assignment of responsibilities is mere Hopium.
JUST ASK
You can learn a lot by having an honest conversation with your manager about the company’s post-RIF potential and whether more layoffs are on the horizon.
Don’t forget that it’s highly likely that your manager knows more about the company’s situation than you do.
Most people can’t help but share their excitement and fears when asked, so talking to people who are “in the know” is often polarizing.
It’s likely you’ll come away either more excited or more worried.
A RIF without managers who believe in the path forward is mere Hopium.
TL;DR: While a RIF can be scary, it can also signal that your company is being thoughtful about what it will take to succeed in today’s market.
But it’s prudent for RIF survivors to determine whether Leadership knows what they’re doing or if they’re living off of Hopium.