The Hidden Costs of Cutting Communication: Why Layoffs in Support Functions Can Backfire

In recent years, we've seen a troubling trend in corporate layoffs.  Targeting support functions like HR, communications, and event planning. While these departments are often viewed as cost centers, their importance to organizational health and employee satisfaction cannot be overstated. Let's explore the real impact of these cuts and how companies can maintain effective communication even with reduced staff.

The True Value of Support Employees

Support functions may not directly generate revenue, but they play a crucial role in keeping a company running smoothly. HR ensures compliance and manages talent, communications keeps everyone informed and aligned, and event planners foster company culture and employee engagement. When these teams are downsized, the effects ripple throughout the organization.

Employee Engagement Takes a Hit

Did you know that only 64% of knowledge workers believe their company communicates effectively? This statistic is alarming, considering the importance of clear communication in today's fast-paced business environment. When cutting communication teams, this percentage is likely to drop even further, leading to:

• Decreased trust in leadership

• Lower employee engagement

• Reduced productivity

In fact, poor communication reduces trust in leadership and team members for more than 40% of workers. This loss of trust can be devastating to a company's culture and bottom line.

The Domino Effect of Communication layoffs

When companies cut communication professionals, they often underestimate the hidden costs and effects:

• Information gaps: Employees may miss critical updates about company direction, policies, or industry trends.

• Decreased engagement: Without regular, meaningful communication, employees can feel disconnected from the company's mission and goals.

• Cultural decline: Events and internal communications often play a key role in reinforcing company culture. Their absence can lead to a fragmented workforce.

• Executive disconnect: Leadership may struggle to effectively convey their vision and strategy to the broader organization.

The Cost of Saying Nothing

While cutting communication staff may seem like a quick way to reduce expenses, the long-term costs can be significant. Consider this: organizations with effective communication and change programs are 3.5 times more likely to outperform their peers. By reducing communication capabilities, companies risk:

• Higher turnover rates

• Decreased innovation

• Lower customer satisfaction

• Missed opportunities for growth

 A Smart Alternative: Communication Consulting

If cuts are absolutely necessary, or if they have already taken place – there are ways to keep things on track.  How can companies maintain strong communication practices while managing costs? Enter the communication consultant. Professionals can provide targeted expertise and support without the overhead of full-time employees. Here's how consultants can help:

• Strategy Development: Consultants can create comprehensive communication plans aligned with business goals.

• Executive Messaging: They can craft compelling narratives for leadership to keep employees informed and inspired.

• Crisis Communication: When unexpected issues arise, consultants can quickly develop and execute communication strategies.

• Project Support: For specific initiatives or changes, consultants can provide focused communication support.

 TL/DR

While cutting support functions may seem like an easy way to reduce costs, the long-term impact on employee satisfaction, productivity, and overall business performance can be severe. By investing in effective communication – whether through in-house teams or external consultants – companies can ensure their employees remain engaged, informed, and aligned with organizational goals.

Remember, in today's information-driven world, clear and consistent communication isn't just nice to have – it's essential for business success. So before making cuts to your communication team, consider the true cost of silence and explore alternatives that can keep your company's message strong and your employees connected.

Finally, if you must reduce headcount – specifically in the HR/Comms/Events areas – consider bringing a consultant in to keep employees informed and engaged.  Your people are your best asset – please don’t treat them as an afterthought!