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When a CEO is abruptly dismissed—whether because of misconduct, ineptitude or differences with a board of directors—how does the departure affect the employees who remain, and how can HR help them cope?
A recent Wall Street Journal article explored the alarming rate at which CEOs are being fired. In June alone, General Electric, Uber, Whirlpool, Buffalo Wild Wings, Perrigo and Pandora all announced CEO departures. In the first five months of 2017, the article states, 13 companies with market values of more than $40 billion installed new CEOs.
Whether a CEO is fired, forced out or leaves voluntarily, the result can be employees who feel rudderless and demoralized—worried about the future of the company, their own careers and the policies of new leaders, said Kim Littlefield, senior vice president of Keystone Partners,a Boston-basedtalent management and career transition services consulting firm specializing in supporting C-suite executives who have been fired.
"Whenever there is a termination at the CEO or senior leadership level, there is a big impact on the organization," Littlefield said. "Employees begin to question the future of the organization, which naturally leads to wondering whether their job is safe, causing employees to either disengage or look for a new job. This reaction is valid because usually when there is a change in senior leadership, executives bring in their...