Human Resource Executive has issued its 2020 most admired rankings for the top 50 companies in human resource and Disney placed first. This feat is especially remarkable because of the COVID crisis Disney has experienced and how many of its employees (called cast members) have been adversely affected by the crisis. 

Most noticeably is Disney’s decision to lay off over 25,000 employees. That decision may appear as heartless as the stormtroopers in the snap above, but with its theme parks either not opened or opened with limited attendance capacity, its cruise line shut down, its movie division not able to film or run its movies in theaters and financial hemorrhaging, Disney’s placement is nothing short of remarkable.

During the COVID crisis, Disney has done a number of things right in relationship to its employees.

• Bob Iger, its top executive, gave up his entire salary for the year
• Disney’s number two, Bob Chapek gave up 50 %.
• All other executives had their saleries cut by 20%.
• Employees were kept on payroll until the Federal government’s COVID relief package (now expired) took over.
• Employees were then furloughed instead of terminated.
• Disney kept paying their medical benefits.
• When terminations finally happened this month, Disney was candid and open with those terminated.

The terminations are, of course, very, painful, very sad, very heartbreaking. The company has lost many excellent employees (I was one of them in a prior round). But, with the unprecedented economic situation the Mouse faces, and the potential for billions of losses for 2020 and 2021, the Mouse did what it had to do.

There are lessons to be learned from Disney’s behavior.

Communication is key. People can cope with almost any situation when they know what they are facing. It is the unknown that creates the most fear. If you face tough times, don’t hide it. Tell your people. Let them know what is happening. Keep them in the loop. Be as open as possible.

Treat employees you must terminate with respect. You may want them back at a later date. You certainly do not want them bad-mouthing you in the community. They are still potential customers.

Be open and honest with the public. If you expect customers to come back to you once a crisis is over, there is little point in tying to hide what is happeneing. People seem to always find out any way.

And, above all else, treat others as you want them to treat you. It is good business and good human relations.