Layoffs can be a challenging experience not only for those directly affected but also for the remaining employees, often referred to as "layoff survivors." The emotional and psychological impact on these employees can be significant, and it is crucial for leaders to provide the necessary support to help them navigate this difficult period.
The Leadership Challenge
A study by Leadership IQ involving over 4,000 employees who survived a corporate layoff found significant declines in productivity, quality, and engagement among the remaining workforce:
74% of employees who kept their jobs reported a decline in their own productivity.
69% observed a decline in the quality of their company's product or service.
87% were less likely to recommend their organization as a great place to work.
64% noted a decline in their colleagues' productivity.
81% saw a drop in the quality of service customers received.
77% reported an increase in errors and mistakes.
61% believed their company's future prospects had worsened.
What Should Leaders Do?
A study conducted by Gallup identified key needs of employees during times of change.
In short, employees need four things from their leaders: Trust, Compassion, Stability, and Hope.
This guide highlights strategies leaders can use to foster these qualities among their teams during times of disruption. Trust: Maintain Honest Relationships
Trust is the cornerstone of effective leadership, especially during times of uncertainty. Leaders should:
Communicate Transparently: Share information openly about the reasons behind the layoffs and the company's future plans. Honest conversations can help dispel rumors and reduce anxiety.
Be Available: Make yourself accessible to answer questions and address concerns. Regular check-ins can reinforce trust and demonstrate your commitment to the team's well-being.
Support Continued Relationships: Understand that it is natural for employees to stay in touch with their former colleagues. Encourage this as part of the healing process, rather than seeing it as inappropriate.
Key messages of Trust:
• "I’m here to listen…"
• "I want to openly share..."
• "I’m sure you have concerns..."
• "It’s natural for colleagues to stay in touch even after a layoff, and this shouldn’t be seen as disloyalty."
Compassion: Show Genuine Care
Compassionate leadership can significantly alleviate the stress experienced by layoff survivors. Leaders should:
Acknowledge Emotions: Recognize and validate the feelings of your team members. Let them know it’s okay to feel upset or anxious.
Offer Support: Provide resources such as counseling services or support groups. Show that you care about their mental and emotional health.
Communicate Your Support for Displaced Employees: Inform your team how you or the company are supporting those who were laid off, such as through outplacement services or career coaching. If you are personally providing references to displaced employees, share this with the team. Knowing how you are helping can provide comfort to those who remain.
Key messages of Compassion:
• "I want to acknowledge the (sadness, anger, confusion, disappointment, surprise) you feel..."
• "I’m also feeling a range of emotions..."
• "I care about your well-being..."
• "It’s completely normal to feel this way..."
Stability: Create a Safe Environment
A sense of stability can help employees feel secure in their roles and less worried about their future. Leaders should:
Maintain Consistency: Keep routines and structures in place as much as possible. Consistency can provide a sense of normalcy.
Be Predictable: Clearly outline any future changes and what they mean for the team. Predictability helps reduce uncertainty and fear.
Increase Support and Communication: Be prepared to spend 2x more time interacting with and supporting your employees. Key messages may need to be repeated multiple times to be fully understood and internalized.
Key messages of Stability:
• "Here’s where we’re going..."
• "I’m committed to..."
• "What I know for sure is..."
Hope: Inspire a Positive Outlook
Instilling hope can motivate employees to look forward to a brighter future. Leaders should:
Focus on Growth: Highlight opportunities for learning and development within the company. This can help employees see a path forward.
Share Success Stories: Celebrate small wins and progress. Sharing positive stories can boost morale and create a sense of optimism.
Key messages of Hope:
• "I’m looking forward to..."
• "Our team is being successful in..."
• "We’ve come a long way and we can feel good about..."
• "Here’s a milestone/highlight..."
• "We’re in this together."
By focusing on these four pillars—trust, compassion, stability, and hope—leaders can effectively support their teams through the challenges of layoffs. Providing strong, empathetic leadership not only helps employees cope with the immediate aftermath but also sets the stage for a resilient and motivated workforce moving forward.
This guide is designed to help leaders navigate the complexities of layoffs with empathy and strategic foresight. By implementing these practices, leaders can ensure their teams remain engaged, supported, and hopeful for the future.
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