In a creative marketplace, laying off employees merely reduces headcount; it also erodes employee trust. Following a layoff or restructuring, "Survivor's Guilt" appeared as an example of employee avoidance: reduced employee contributions and less input in asynchronous discussion threads. To eliminate the perceived risk of employee "whisper networks" and to rebuild a safe environment at our organisation, we established a few rules that were simply: 1) No Surprises, and 2) No Whisper Networks. To rebuild trust, we established a very transparent communication strategy. We issued a one-page document titled: 1) Why are we restructuring? 2) Why did we do this now?, and 3) What will happen next? In addition to issuing this document, we conducted two separate live Q&A sessions with the same answers, delivered without spin. Following the initial Q&A sessions, we conducted "Stay Interviews" with all of our top contributor employees within 10 days of the restructuring announcement. As part of our Total Rewards program, we eliminated the need for employees to wait until year-end for their annual recognition. Instead, we began recognising employees monthly. Additionally, we introduced flexibility credits for employees with caregiver responsibilities, lesson: Clarity Beats Reassurance.
When we had to lay off some of our employees due to an extreme decrease in demand, there was a real risk of " hidden overload," where even though the number of shipments had returned to normal, the number of errors increased dramatically. To prevent this, we used "capacity math" rather than relying solely on motivational speeches to stabilise our floor operations. First, we suspended all non-essential work for 30 days and reduced the scope of our daily targets to reflect the current staffing levels. Second, we created pairs of backups for each employee and developed one-page standard operating procedures (SOPs) to ensure that employees would feel comfortable taking time off without fearing they were overburdening their colleagues. Third, we conducted manager rounds twice per week, asking employees, "What is unclear?" and "What is unfair?" Total Rewards Move: We provided a temporary shift differential, a 90-day attendance/quality bonus tied to lower return rates. I learned you must protect your workload first before you can rebuild trust with your employees.
The stress of surviving after a budget reduction was not sadness. There was fear about whether you would be the next to lose your job due to ambiguity. To manage this uncertainty, we employed a strict, fact-based process. In week 1, we posted a "runway" indicating a range of time (months) during which we would continue operations, along with our top 3 priorities that we would not alter during this period. In week 2, we ran an employee pulse survey that included a single open-ended question. Employee responses were shared with employees within 72 hours of receiving them. By week 3, we re-established workloads by limiting each team member to no more than 2 weeks of continuous work (a "sprint"), so that no one would pick up additional work assigned without notification. Total Rewards: In addition to offering a retention bonus tied to employee retention through the end of the next release cycle, we also provided additional paid time off (PTO) to all teams that shipped priority work learning: Speed & Transparency > Perfection.
After layoffs at our hotel, morale was terrible. We started pairing people up to share workloads and offer support. It took a while to get good at fixing problems with guests, but once we did, our customer scores and team mood both picked right up. My advice to HR is to skip the new perks and just have real conversations. People want to feel seen, not just paid.
After layoffs, our office went quiet. So we tried something we learned at Together, pairing senior leaders with team members for coffee chats. It gave people a place to be honest about their worries. We also sent out simple two-question weekly polls to check morale and paid for training classes for anyone feeling stuck about their future. Getting people talking with their bosses built a kind of confidence you can't buy with a bonus.
What worked with layoff survivors * Ensure clear communication after a layoff. Provide employees with information and to keep most aspects of their current job duties throughout the layoff period. * Evaluate workloads and reassign duties and projects to employees so as not to unknowingly exceed employees' limitations. * Schedule a one-on-one meeting about your team with your direct reports to discuss employee workload and morale on a weekly basis. Rebuilding trust and productivity * Assist employees in resolving issues within their work environment in the first week after the layoff. Communicate with employees about how you will act on resolving any problems they have raised to you. * Let your employees be part of the workflow redesign so they feel as if they are participating in a decision that affects them rather than losing hope for job security due to layoffs. * Provide employees with the ability to see where they can grow within the company in the long-term and in the immediate future so they do not leave the company for unexpected reasons. Total Rewards that helped retention * Consider a spot bonus processed quickly based on specific criteria. * Provide employees with the ability to take time off after layoffs to recover from the emotional impact of the layoff. * Help employees secure access to training materials and to be able to move into other positions quickly.
Brand and community I spearhead the grief and high stress situations, but the patterns of people manifest after layoff. The quickest win is a workload reset which demonstrates that leadership is serious. In week 1, we map what will not move, what will not be moved, who will have it and what good will look like over the next 30 days and we publish it so that people will know enough to quit guessing.. To handle guilt and anxiety, we train managers to aloud name it in team meetings, and have a basic script to one on ones, what is too heavy now, what does not make sense, what does the manager need this week. Rebuilding of trust comes when the answers are straightforward, harsh as they may be and where leaders employ the same message in all channels. To maintain employees, the best Total Rewards action is not any glitzy benefits, it is time and permanence. Protect concentration periods,create rest days and invest learning leveraged by the new scope in such a way that individuals have a future, not additional work.What I learned is simple. Unless you take away the fear then people will take away themselves.
If you have an employee that you may be concerned is experiencing 'survivor guilt' or any other form of anxiety following layoffs to staff, the most important course of action to take is to prioritize full transparency. It may be tempting to obfuscate the truth a little to soften the impact of marginal decisions or to uphold a stronger perception of company core values, but using lies can only lead to fundamental trust issues that may never fully be resolved among layoff survivors. Instead, hold an open forum for discussion where you underline the rationale for the layoffs and provide clear insights into the future strategy of the company. It's also worth holding smaller, departmental meetings in order to answer questions and address concerns openly. These smaller meetings can go a long way in helping affected workers speak out on their insecurities, which you can then address to uphold a higher level of engagement and motivation at work.
As a managing partner at M&A Executive Search, we specialize in hiring high level leadership talent for clients. In the recruitment industry, we have seen how layoffs can impact remaining employees. One strategy that we advise our clients to implement is encouraging transparency and open communication. It helps to hold meetings and explain to employees future plans. By being transparent about how the remaining roles fit into the bigger picture, you can help get employees to become aligned with the changing environment. This helps diffuse the anxiety or guilt they may be feeling. Furthermore, one-on-one meetings and check-ins helps you personally connect with employees. It allows you to address any personal concerns and provide support. The key is to be honest and offer support in any way you can to ease tension and anxiety. This is essential to rebuild trust and remind your employees that you care while also promoting productivity in the workplace.