After a round of layoffs, organizations face the daunting task of guiding a workforce gripped by difficult emotions and uncertainty. Shaken employees will be looking for steadfast leadership during this period — and it will ultimately be up to leaders to maintain morale and productivity.
A key focus during this time is to shift the individual “I’m next” mindset to a collaborative, “We’re in this together” spirit. Layoffs can spark a anxiety among remaining staff — as colleagues depart, employees may fear for their own job security and seek opportunities elsewhere. In fact, research finds that quits in the wake of dismissals are about 10 times higher than after voluntary quits.
Leaders who can nurture resilience, trust, and collective determination stand to help the organization weather the storm — and emerge stronger in its aftermath.
The psychological impact of layoffs
Besides attrition, another common response to witnessing colleagues lose their jobs is “survivor layoff guilt,” which can trigger feelings of anger, fear, and anxiety, according to workplace psychologists. When morale slumps, it can lead to widespread apathy, disengagement, and even outright hostility. In many cases, remaining employees may also feel stressed by increased workloads when team members leave.
Understanding these emotions — and showing empathy for them — is one of a leader’s key responsibilities after a workforce reduction. Leaders must have the right skills to understand, respond to, and marshal the entire spectrum of emotions that their teams may be experiencing.
Getting this right can be the difference between moving forward with a highly engaged, confident, and productive team or risking further attrition and plummeting morale.
Leadership’s role in retaining talent
After a workforce reduction, leaders should focus on three things to help retain and re-engage their teams:
1. Support and reassure remaining team members
2. Clearly communicate organizational changes, as well as revised team and individual goals
3. Prioritize team workloads to prevent burnout and attrition
Effectively juggling these tasks requires specific leadership skills, including:
Listening skills and empathy. Understanding employees’ concerns can help quell fears and anxieties.
Transparency and clear communication. Clear, straightforward communication about the reasons behind the layoffs can help cultivate an environment of openness. Transparency about the organization’s future can also help build trust and shift perspective from the individual to the bigger picture.
Prioritization and triage of ongoing projects. Leaders must address the fact that there may now be more work to split among fewer employees. By prioritizing high-impact workstreams, leaders can reduce stress and burnout, ensuring employees remain engaged.
Purpose-driven leadership. Leaders must also find ways to create and showcase opportunities for growth, convincing employees that despite the temporary speed bump, there are plenty of opportunities for advancement on the road ahead.
Proactive well-being initiatives
Well-being programs can help retain talent, as an employee who feels supported is 69% less likely to actively seek out another job. Proactive well-being initiatives can also benefit organizations as a whole. In fact, the Surgeon General’s Framework draws a correlation between employee well-being and the overall health of companies.
A well-rounded well-being program may include access to mental health support and counseling to help employees navigate emotional challenges. The American Psychological Association notes that 81% of employees value and seek out workplaces that emphasize supporting mental health.
Finally, well-being initiatives should promote physical health and wellness and encourage leisure-based activity, both closely linked to mental and emotional well-being.
Professional development and growth opportunities
Employees who perceive that their organization is invested in their professional growth are more likely to be engaged. In fact, Gartner research finds when employees feel supported by their organization on their career trajectory, they’re up to 39% more likely to become a high performer — and their willingness to stay at the company jumps by 19%.
In the immediate aftermath of layoffs, remaining employees will likely need to stretch outside of their current capabilities to adapt to new work streams. This is an arena where learning and development (L&D) programs can lend support. L&D can help provide actionable frameworks that employees can apply directly to their roles to improve performance.
Further, companies should offer a variety of L&D resources and personalized learning journeys to meet employees where they are. Offering a curated selection of training and development programs can help leaders align their teams to organizational goals and establish common best practices.
Prepare your leaders for future challenges today
Layoffs are challenging for all involved, but proactively equipping your company’s leaders to weather the storm can mitigate some of the most negative potential effects. Leaders who can motivate employees through challenging times will also help foster a more resilient workforce prepared for future challenges.
If you sense your business is at risk of losing talent, prioritizing leadership coaching can help create a culture employees want to remain part of. Discover how ExecOnline can enable your leaders to excel in an ever-changing landscape.