Hot Topic Friday: May 8

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Happy Friday! Here are my May 8 Hot Topics and how they relate to advancing culture or leadership.

Hot Topic 1: There is a Right Way to Layoff People

Source: Business Insider

What It’s About: On May 5, Airbnb’s CEO Brian Chesky announced that the company is laying off nearly 1,900 people, around 25 percent of its workforce. Losses rose to $674 million last year even before the pandemic, and business has plummeted further. Chesky reported that Airbnb's revenue this year will likely be half of the $4.8 billion it earned in 2019. Airbnb raised $2 billion in debt and equity in April as it tries to buy some runway to ride things out. What would you do? 

No decent CEO wants to layoff employees. However, the long term survival of the company is a fiduciary responsibility. When that action is the correct long term decision, there is a right way and wrong way to go about it. The proper plan could even strengthen company culture. Do it poorly, and it will hasten a downward spiral. Everyone will remember and know what the company values really are. 

So What?: Let’s examine the highlights of Airbnb’s lay-off process:

  1. A very fair severance package that includes several months' pay.

  2. Allowing employees who joined in the past year to become shareholders, dropping its previous one-year tenure requirement.

  3. A year of continuous healthcare.

  4. A very creative way of helping these former employees find new jobs. 

  5. And more. 

Airbnb’s new business strategy and cultural values clearly guided the decisions made. They could have got away with much less. 

Now What?: You are what you do. It’s that simple and that hard. 

One Millennial Response: Other than potentially losing a position with a team/company that you truly love, the next main stressor after a layoff is obviously income and healthcare. When an organization realizes it isn’t their employees’ fault the world stopped traveling and staying in the homes of strangers (let alone anywhere), this “check out” process is extremely self-aware and admirable.

Hot Topic 2: Crisis and Accelerating Culture

Source: Forbes.

What It’s About: The assessment company Culture Amp, conducted a survey to better understand organizational culture amidst this global pandemic. To date, seven million surveys have been completed from individuals at more than 2,000 companies. What did they learn? 

So What?: The primary, very obvious insight: “Companies with a strong culture are much more resilient in times of crisis… Organizations that already have experience flexing this muscle are more likely to have confidence in their leadership, feel safer, and be more comfortable about their company’s plan to return to work.”

Now What?: Read the whole article, but the following are three big insights: 

  1. Openly, transparently communicate real time to all (we have live streaming communication sessions led by executives and open to all employees, EVERYDAY). 

  2. Connect, Connect, Connect. Every employee needs daily connection and compassionate leadership. 

  3. Ask employees what they need to feel safe, NOT just listen to government guidelines to build your return to work plan. 

Crisis helps separate companies that have strong cultures and business strategy/models from the weak. 

One Millennial Response: I hope most of you read this, and reacted with, “and in other news, water is wet.” Like really? Seven million surveys needed to be conducted to figure this out? Regardless, the three big insights are a good reminder about connection and personalized communication.

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[Ed Note: Find it at your local wine shops.]

And finally! Here’s Cecil’s Bleat of the Week!

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“There is a difference between a group of people who work together, and a group of people who trust each other.” - Simon Sinek

Bye for now!

— Lorne Rubis

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