This month’s post was sparked by the recent manner in which the employees of Canada’s most iconic company, a 330-year-old retailer, the Hudson’s Bay Company (or HBC as it is now known), were treated as layoffs were announced.

Before I go further, a disclaimer – I was not a fly on the wall, nor was I privy to how HBC came to their decision on how to let their 9,300 employees know that the company was shutting down. However, what is important to remember is that reputation is in the eye of the beholder… it is not what the organization believes the audience should perceive; rather, it is the perception of how such events should be handled.

And HBC is only the latest example of companies that have let their employees find out through the news media that they no longer have jobs…

Just take a moment to put yourself in the shoes of those employees. Many are front-line workers, who, like the rest of us, are challenged by stubborn inflation, economic worries, geo-political tensions, the Trump tariffs, and overall affordability stresses. Now imagine that you are living in fear of what some might arguably say was inevitable, but it still stings when it happens. And then imagine the shock when you learn you have been terminated, not by your manager or someone from HR – but rather, from a news media report.

From that person’s perspective, you would feel like unwanted merchandise. Compare this with the scenario that may have taken place when they first joined the organization and how the organization’s mission, vision, and values were not only touted and paraded, but celebrated as well. Where were those mission, vision, and values when they mattered most? And whatever happened to “employees are our greatest asset” – at a time when that employee needed to be treated with respect and dignity on their way out.

You may say that I am being harsh to HBC. I am only singling them out because they are the latest example. The landscape is littered with others. And I’m not specifically referring to companies that let their employees find out about their job losses via the news media.

In 2020, Canopy Growth used Zoom for a 200-employee layoff; Better.com using a Zoom call to inform 900 employees of layoffs; and Klarna using a recorded message to announce 700 employee cuts, followed by email confirmations.

Where were the executives and HR teams? What about the human touch? Remember, these are people with lives, families, responsibilities, and obligations. Before these events took place, there was a time when they were considered the organization’s best ambassadors.

Again, don’t shoot the messenger – how we handle exits is just as important as onboarding, if not more. This is a critical time when the “Human” and “Resources” need to come through as clearly as possible. HR, executives, and communications need to work together to exit employees compassionately and with care.

You think Glassdoor reviews are damaging? Wait until these former employees who were unceremoniously exited, spread their stories by word of mouth.

It would be well to remember that the carelessly dismissed employee could potentially be tomorrow’s lost customer and/or influencer.

But all is not lost. There are hopeful examples of organizations that strive to do it right by their employees. I paraphrase here, but in former Starbucks CEO Howard Schultz’s book, Onward, he remained as adamant as possible about not laying off any baristas or other staff during the 2008 financial crisis.

Rather, he challenged his team to find other ways to regain customer trust – and he was largely successful. Many of you may remember how he shut down Starbucks stores across North America for a day and half, costing them somewhere around $6 million, to retrain baristas on the art of making coffee, a move that paid positive dividends.

And then there’s Patagonia founder Yvon Chouinard, who, in September 2022, transferred ownership of the company to a trust and a non-profit to ensure its profits were used to fight the climate crisis, rather than going to a new owner. This move also aimed to protect Patagonia’s values and ensure employee well-being, as a new owner might not prioritize these same factors.

By giving the company away in this way, Chouinard ensured that Patagonia’s employees would continue to be treated well and that the company would continue to prioritize sustainability and environmental action, even if the company’s ownership structure changed. (Note: there have been layoffs since then, under the new CEO – but this example still stands for the leadership shown by Chouinard).

As we continue to deal with uncertainty, please remember that your team members are nervous, fearful, stressed, emotionally charged, and filled with anxiety. IF you must resort to layoffs – whether temporary or permanent, HR needs to demonstrate leadership by working with the C-suite to treat employees with compassion and care.

As the Oracle of Omaha famously said in the past, which still holds true today, “It takes 20 years to build your reputation and only five minutes to lose it.” In today’s hyper-speed and hyperconnected world, I think that even Warren Buffett would agree that five minutes seems like a luxury we don’t have…