Harsh Pokharna, CEO and founder of OkCredit, is receiving praise for his transparent and empathetic approach to laying off 70 employees due to budget constraints. In a LinkedIn post, Mr Pokharna shared the challenging experience, acknowledging the company's mistakes and emphasising their commitment to handling the situation with care.
"18 months ago, we laid off 70 people. Here's how it went…We were burning too much. Hired too fast. It was our mistake. And we owned it. It was one of the hardest things I've done as a founder. But we tried to do it the right way," he wrote on LinkedIn.
Mr Pokharna then outlined the supportive measures OkCredit took after the layoffs. The company ensured transparent communication by having personal conversations with each of the 70 affected employees to explain the reasoning behind the decision. Additionally, OkCredit provided career assistance by offering referrals, introductions, and job leads to aid in their transition. This support led to successful placements, with 67 employees securing new positions before their notice period ended.
"67 got placed before the notice period ended. For the 3 who didn't, we gave 2 months' extra salary," he added.
See the post here:
The OkCredit CEO also drew a stark contrast between his company's approach and the current tech industry layoffs, where many employees are being notified of their termination via email, without even a phone call.
"Over 120,000 people were laid off this year. And many of them didn't even get a call. Some found out through a blocked email. Some were just removed from Slack in the middle of the day. That's inhuman. Yes, layoffs happen. But how you handle them says everything about your culture.I know it's tough to have these conversations, but this is what you signed up for when you became a founder. If you call someone "family" while hiring them, treat them like family when letting them go too," he wrote.
Mr Pokharna's heartfelt post resonated with many on social media, earning him widespread praise for his empathetic and considerate approach to handling layoffs.
One user wrote, "I always believed money in life will come and go but anyone who is working with us should have a pleasing experience. Be it a customer, supplier, domestic worker, or team. We should have a positive effect on each other."
Another commented, "That is such a mature and respectful way to deal with people. More power to you. Cowardly leaders hide behind their mistakes and put it on employees due to their incompetence. Real power lies in owning up. True quality of a leader and founder."
A third user added, "It's commendable that you're being upfront about it; most people only talk about fostering a positive culture." A fourth stated, "Mistakes happen in business, but employees who put their trust in the CEO and the company shouldn't have to bear the brunt. You did the right thing by supporting them in finding new opportunities. Hats off to you."
