(4-minute read)
Economic and trade uncertainty is creating difficult decisions for organizations across Canada. For the people affected, those decisions can have a very personal impact.
Simon Parkin, Founder and President of The Talent Company, shares his perspective on what organizations should consider when workforce changes become necessary, and why the way people are treated through those transitions matters.
Given my line of work and everything happening between Canada and the United States, I’ve been thinking a lot lately about the people behind the headlines.
Trade tensions, tariffs and broader economic uncertainty are often discussed in terms of industries, markets, supply chains and GDP. But for the workers and families affected, the consequences are much more personal. Jobs have already been lost, and as organizations assess the impact of these challenges, more people may find themselves facing uncertainty in the weeks and months ahead.
Even in “normal” times, organizations change. Priorities shift. Markets evolve. Performance issues need to be addressed. Roles are created, changed and sometimes eliminated. That’s part of business.
How organizations respond to this moment and, more importantly, how they treat the people affected will say a great deal about their leadership.
Restructurings are rarely remembered simply because a company eliminated jobs. They are remembered because of how the company treated people when it did.
For leaders facing difficult decisions, the first responsibility is to make sure the business case for change is sound. Decisions should be carefully considered, alternatives weighed, and the rationale clearly documented. Once a future organizational structure is established, decisions about impacted roles should be based on objective organizational requirements and applied consistently.
And then comes the part that may matter most to employees: communication.
People deserve to understand what happened, why it happened, what it means for them and what happens next. They don’t need corporate jargon or carefully crafted euphemisms. They need honesty, clarity and respect.
But supporting people through a termination or layoff shouldn’t end with the conversation.
The strongest employers recognize that losing a job can be one of life’s most stressful experiences. At a time when workers may already be worried about the economy, their industry and their ability to find their next opportunity, meaningful transition support can make a real difference.
That might include appropriate severance, continued benefits where possible, flexibility to focus on a job search, references and, importantly, professional career-transition support. Coaching, practical job-search assistance, interview preparation and access to training or upskilling can help displaced workers regain confidence, clarify their next steps and move forward more quickly.
How employers treat departing employees can have consequences well beyond the individuals leaving. Employees talk. They post online. They tell their friends, families and professional networks about their experiences. Just as importantly, the people who remain are watching closely.
When organizations handle difficult transitions poorly, the potential fallout can extend from employee anger to negative reviews, social media criticism, employer brand damage and greater difficulty attracting and retaining talent. When they handle them with fairness, dignity and genuine support, they send a very different message to the people leaving and to those staying behind.
And perhaps that’s the real test of an organization’s values.
It’s easy to talk about putting people first when business is strong. What matters is how those values hold up when circumstances force difficult choices.
No amount of severance or transition support can make losing a job easy. Nor can employers always prevent the economic forces that lead to restructuring in the first place. But they can control how they respond. They can ensure decisions are thoughtful and fair. They can communicate honestly. And they can provide people with meaningful support as they navigate what comes next.
As we work through this period of economic and trade uncertainty, let’s remember that workers are more than line items on financial statements. They are the people who have built our organizations, served our customers and contributed their time and talent to our success.
And long after the details of a restructuring have faded, people will remember how they were treated.
Supporting employees through workforce change means giving people clear information, treating them fairly and making sure they have practical support as they move into their next role.
If your organization is navigating workforce changes and considering how best to support your people, we’re here to help.