It is hard to believe that in this day and age of 360 degree social media platforms and post COVID layoffs going on in most industries, that this small group of company executives at Microsoft didn't think through the impact of their attendance at a Sting concert while they were laying 10,000 employees. The most difficult role for HR is to fend off the complaints and concerns from the 10,000 who are being let go. Obviously, it didn't occur to these company executives, or, even worse, it did and they didn't care that the feelings of their departing employees even matter. Even though employees are being let go, they'd like to leave with a positive feeling for the company and a Sting concert being attended by company executives does not play well for a group of employees who are being let go and are adept at using social media to send a message. Now, HR has to clean up the emotional mess and convey to the remaining employees that the company does 'care about its employees'.
The optics of the private Sting concert are a clear indication of an ethical lapse from Microsoft concerning its treatment of employees. In such a situation, showing care and consideration for those who have been laid off should be top priority, and the timing of this event was poor at best. From an HR perspective, it is important to consider how employee morale is affected by decisions like these. Employees are not just pawns in a system; they are human beings with families, careers and futures that depend on their employer's reputation as a caring entity. If executives appear indifferent to their plight during large layoffs—or worse yet celebratory—then long-term loyalty and trust between management and staff can suffer drastically due to negative public perception; not only among current workers but potential hires as well. Ultimately Microsoft could have used this opportunity to demonstrate the value it places on its workers by choosing another course of action
The optics of holding a private concert when you are just about to lay off 10,000 employees is absolutely terrible and stinks to the high heavens. However, I don't think we should be surprised at all by this. In corporate America, there always seems to be a big disconnect between executives and regular employees. The massive pay gaps, differences in benefits, and a huge imbalance in growth opportunities are some examples of how senior employees benefit so much from corporate success at the expense of their hardworking low-level employees. Besides, it seems the massive wave of tech layoffs is not going anywhere soon. Other major tech giants have significantly cut jobs, and we expect this to continue all through 2023. But you can bet that executive bonuses will still be there even as most folks lose their jobs.
While this might have seemed like a fun way to blow off some steam before a big layoff, it’s important to remember that any celebratory gathering is also a very public message to employees about management’s mindset. If management is seen partying it up, it sends the message that the company is doing well and there won’t be any layoffs. If management is seen quietly attending a company-wide meeting, it sends the message that management is expecting bad news and there could be layoffs. Even if the message is unintentional, it’s important to remember that optics matter and small celebrations at a time when thousands of people are losing their jobs is a terrible idea, as it conveys indifference toward the welfare of employees.
From an HR perspective, this is absolutely a bad move. As a company, you want to make sure that your employees are always kept in the loop about how the business is doing—and it is clear in this case that they were not. The optics of the Sting concert are terrible, and the fact that there were no other employees present at the event only makes it worse. If there is any chance that people will be talking about this in their interviews or during their interview process, they will likely ask questions like "Why did you hire me?" or "Why did you choose to hold this event?"
Microsoft made an error with this policy, and its more than just an optics problem it’s a culture one too. Microsoft execs made the decision allegedly to “cut costs” but how does a concert look in the midst of this? Pushing austerity for employees but not for execs is a bad look for any corporate culture. If layoffs are truly necessary for the health of the company, then any other expenses (like a private concert) should be cut too.
Company executives are in a unique position to use their influence to create a culture where employees’ well-being is a top priority. When executives attend events like concerts during times of layoffs, they are sending a message that they value their own entertainment over the stress and anxiety of those who are losing their jobs. They should be more mindful of the message they are sending to employees and their clients and consider the optics of their choices because even the employees that were not fired will feel demotivated due to the perception they have about those executives.
The concert could have been scheduled months earlier, and the layoffs could have only come about in the past few weeks. We don’t know the details or the timeline of those actions. However, executives at huge companies live in a completely different world than the majority of people. Saving money by laying off employees and spending millions on a private concert in short succession seem like totally reasonable actions in that world. They believe that they are entitled to such perks for doing the heavy lifting of the difficult decision to fire 10,000 people. Corporate executives work every waking hour of the day. If they weren’t corporate execs at Microsoft, they would be executives of their own gargantuan company. It's what they’re meant to do. Most people are not willing to dedicate every moment of their life to work. Tomas Satas Founder and CEO | Windy City HomeBuyer Website: https://www.windycityhomebuyer.com
My thoughts on this private concert before laying off 10,000 employees is that it was very insensitive to the employees. 10,000 employees just lost their jobs and the company executives are attending a private Sting concert that probably cost thousands of dollars. This money could have been better used elsewhere towards severance pay for the employees that were being laid off.
What company executives do during their free time is none of our business, but this situation is on a different spectrum. It sends the wrong message during a trying time and shows some insensitivity on their part. Executives are business leaders who must lead by example. They act as captains of the ship who must look out for the welfare of their comrades. Executives must be more mindful of their actions and act consciously.
Attending a private Sting concert a few hours before letting go of thousands of employees is bad optics for the company. It conveys that executive management may not quite have their priorities straight. It also makes them seem not particularly caring and empathetic toward their employees. What makes it even more ironic is that the event’s theme was sustainability. On the other hand, the private concert was undoubtedly planned several months in advance, as is often the case with enterprise companies. With Sting being a popular and highly sought-after artist, it may not have been possible to reschedule the exclusive concert to a more appropriate date. They could have canceled it altogether, but if this was not feasible, then they could have postponed the layoff instead. Whatever the reason behind this concert schedule, it seems the PR and event management teams were not communicating with HR. Otherwise, I doubt this terrible timing would have occurred.