company layoffs reasons

Have you ever wondered why companies rarely ask the real reasons behind terminations? I do – and to be honest, it never ceases to amaze me.

Employees who resign have a perspective that can be invaluable for companies. They see the company from the inside – and still leave. This is where the opportunity lies: They can tell us what is really going wrong. But far too often this opportunity is missed. There is a lack of processes, openness or simply the courage to hear uncomfortable truths. I have experienced myself how much you can learn from honest feedback – if you are willing to listen. It is not always pleasant, but it is necessary.

3 reasons why resignations are a goldmine for feedback

1. The truth comes to light. Employees who leave have nothing left to lose. They can unvarnishedly say what bothers them: internal conflicts, lack of appreciation, and lack of development prospects. This feedback can reveal blind spots that often no one addresses internally.

2. Put the company culture to the test. Every resignation is an opportunity to reflect on whether the lived culture matches the communicated values. Many companies believe that they have a great corporate culture – but how do employees really feel about it? If you recognize this gap, you can strengthen your culture in a targeted manner.

3. Improve employer branding and employee retention. A company that learns from feedback shows professionalism and openness. This not only sticks with the employees who continue to work for the company, but also with those who leave. Positive off-boarding strengthens the company’s reputation – and ensures that ex-employees act as brand ambassadors instead of speaking badly about the company.

Why does this happen so rarely?

I think it is often because terminations are always a little painful. It hurts to lose good people – and even more so when the reasons are not easy to change. But that is precisely where the challenge lies:

Do we want to get better, or do we want to hide?

My tip: See off-boarding as an opportunity. When an employee resigns, off-boarding should be more than just handing over a laptop and access card. Establish an honest and structured conversation that focuses on improvement and openness. It is ideal if these discussions are conducted by a neutral person – this creates the necessary basis of trust.

Show that feedback is valuable – even when it is critical. This signals professionalism and gives you important insights that can make the company better in the long term.

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