5 Ways To Enhance Wellbeing of Layoff Survivors

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The majority of current layoffs have been in the tech industry, but there have also been significant layoffs in industries such as healthcare, tourism/hospitality, retail, manufacturing, construction, and transportation/warehousing. Although layoffs have always been an issue, the recent increase is due to the COVID-19 pandemic, which led to supply chain disruptions, an economic slowdown, and inflation. According to the International Labour Organization (2022), the pandemic is estimated to have pushed global unemployment to 200 million in 2022, up from 186 million in 2021. This represents an increase of 14 million in just one year. The ILO estimates that the global labor market will not fully recover from the pandemic until 2025.

Since the start of the pandemic, businesses have been under pressure to continually adapt to new challenges, shifting expectations and undefined probabilities by cutting costs, and resorting to layoffs to do so. As the world changed significantly overnight as COVID-19 swept across the globe, businesses had no time to strategize but still implemented changes and dealt with the aftermath as problems arose. This meant accelerating the pace of technological change, hiring to meet high demand, and sourcing and implementing new products or services to respond to new needs. As the world has slowly shifted back to standard operations, businesses are finding that they need to lay off workers due to new technologies and a shift in how to fulfill consumer demand in certain industries.

When companies go through mass layoffs, the focus tends to be on the organization and the individuals laid off. However, the impact of layoffs has a significant effect on surviving employees too. While such circumstances are unavoidable, their collateral damage is the significant dent they leave in the morale, productivity, and wellbeing of the remaining employees. Specifically, research has shown that survivors of layoffs and the threat of future layoffs can hinder employee commitment, job and life satisfaction, trust in management, and motivation, resulting in negative emotions such as guilt, anxiety, stress, anger, depression, and resentment (Aujia & Mclarney, 2020; Brockner, O’Malley, Reed, & Glynn, 1993; Carrington,2016; Malik, Ahmed, & Hussain, 2010). These influences on the employee experience hinder their performance and business success because they have a ripple effect on work culture (Carrington, 2016).

Therefore, it is paramount for employers to intentionally imbue an environment and strategies that enhance and preserve the wellbeing of a persistent workforce. Organizations must develop policies and procedures that help mitigate layoffs’ negative influence to keep employees stress-free, inspired, productive, and motivated to remain with a company (Mjtaba & Seathip, 2020). It is imperative that policies, procedures, and approaches that are developed and utilized by executives, HR professionals, managers, supervisors, and leaders focus on the employee experience to ensure business success.

The goal should be to EARN the trust of employees. Trust is the highest form of motivation (Covey, 2006). It is a critical component of effective leadership and essential for building a culture of engagement and motivation in the workplace. Five ways to earn the trust of layoff survivors, enhance their wellbeing, and ensure they are supported and confident about the future of the company and their willingness to remain loyal are:

• T – Transparent communication about the change (Aujla & Mclarney, 2020; Brockner, et al., 1993; Carrington, 2016).
• R – Responsive involvement of employees in planning and implementation (Aujla & Mclarney, 2020).
• U – Upholding a positive organizational culture that values and supports employees (Brockner et al., 1993; Carrington, 2016).
• S – Supportive assistance provided to employees during the change process (Aujla & Mclarney, 2020; Brockner et al., 1993; Carrington, 2016; Malik et al., 2010).
• T – Timely recognition and rewards for employee contributions (Aujla & Mclarney, 2020; Carrington, 2016).

Transparent Communication About the Change

Providing surviving employees with clear, honest, and accurate information about the layoffs and the future of the company ensures they are well-informed and understand the reasoning behind them. Honesty is the foundation for earning trust because it demonstrates credibility and respect for others. When employees are informed, they are more likely to feel valued, engaged, and empowered, leading to better morale and a more productive work environment. Additionally, transparency allows employees to make informed decisions, be more proactive in their roles, and feel a stronger sense of ownership and commitment to the organization’s goals and objectives.

It’s crucial to hold regular and honest meetings, providing updates on the organization’s vision, challenges, and plans for the future, to communicate about change to survivors of layoffs transparently. Simultaneously, leaders should encourage one-on-one conversations with employees to address individual concerns and build strong, intentional, and personal work relationships, fostering a culture of trust and support within the organization.

Responsive Involvement of Employees in Planning and Implementation

Organizations and their leaders that are responsive to employees’ involvement in the planning and implementation of the direction of the organization after layoffs allow them to feel valued and empowered. By intentionally and actively involving employees in the decision-making process and giving them the opportunity to contribute their ideas and insights, they may gain a sense of control and empowerment during a challenging and uncertain time and become invested in the success of the changes.

This approach can also lead to better solutions and strategies as employees bring their unique perspectives and knowledge to the table. When employees feel heard and respected, they are more likely to support the changes and be more committed to the organization’s success post-layoffs.

Moreover, involving employees in the process helps manage their expectations and reduces anxiety related to the changes. This collaborative approach fosters a positive organizationalculture and enhances trust between management and employees, promoting stronger teamwork and overall job satisfaction.

To be responsive to employees’ involvement in planning and implementation after layoffs, organizations can establish feedback channels and conduct regular brainstorming sessions to gather ideas and suggestions from employees. Additionally, leaders should actively consider and implement feasible suggestions from employees, ensuring they play a meaningful role in shaping the post-layoff strategies and rebuilding process.

Upholding a Positive Culture That Values and Supports Employees

Upholding a positive culture that values and supports surviving employees after layoffs not only helps them navigate the aftermath with resilience but also contributes to the long-term success and stability of the organization. It provides psychological support, reduces feelings of isolation and insecurity, and promotes employee well-being through access to wellness programs and counseling. Additionally, embracing a positive and supportive culture fosters increased loyalty, commitment, and engagement among surviving employees, leading to improved performance and a positive reputation in the job market.

It is essential to prioritize open and empathetic communication, ensuring that employees feel heard and understood during the transitional period. Offering personalized assistance helps survivors build resilience and fosters a sense of care and commitment from the organization.

Supportive Assistance Provided to Employees During the Change Process

Supportive assistance provided to survivors of layoffs during the change process allows them to navigate the challenges with greater resilience and adaptability. It helps alleviate stress and uncertainties, fostering a sense of care and trust from the organization, ultimately promoting their well-being and positive reintegration into the workplace.

Organizations can support surviving employees of layoffs during the change process by maintaining open communication, providing emotional support through counseling services, granting training/skill development, and offering advancement opportunities. Implementingwellness programs and recognizing employees’ contributions while encouraging two-way feedback is also essential. These supportive measures help employees cope with the emotional impact, build resilience, and feel valued within the organization, promoting a smoother transition and positive reintegration into the workplace.

Timely Recognition and Rewards for Employees’ Contributions

Timely recognition and rewards for employees’ contributions after surviving layoffs can significantly contribute to their well-being and trust in the organization. By acknowledging their efforts and recognizing their contributions during challenging times, employees feel valued and appreciated. This positive reinforcement boosts their self-esteem and morale, ultimately improving their overall well-being and job satisfaction. Moreover, such recognition fosters a sense of trust as employees perceive that their hard work is recognized and rewarded fairly, enhancing their belief in the organization’s commitment to its employees’ welfare and success. This, in turn, strengthens the bond between employees and the organization, promoting a culture of trust, loyalty, and dedication.

To implement timely recognition and rewards, organizations should establish clear criteria for acknowledgment, regularly celebrate employee contributions, and provide immediate feedback. Customized rewards tailored to individual preferences, formal recognition programs, and leadership involvement further strengthen the culture of appreciation. Public recognition and performance-linked incentives can also motivate employees and align their efforts with organizational goals. Regularly reviewing and improving the process ensures its effectiveness, creating a positive work environment where employees feel valued and motivated to excel.

Summary

Organizations can enhance employee well-being for layoff survivors by prioritizing transparent communication and maintaining open channels for feedback and support. Offering emotional assistance through counseling services and wellness programs can help employees cope with the aftermath. Timely recognition and rewards for their contributions post-layoffs can reinforce a sense of value and trust within the organization. The goal is to intentionally build engaging relationships with employees.

New technological advances can assist with streamlining and strengthening organizations’ ability to earn trust and enhance well-being. One great way is to build virtual communities to engage with employees. A.I.-driven chatbots are also a great way to provide instant access to information and resources for employees, ensuring transparency and consistent communication. Employee well-being apps are another great tool that can offer personalized support, promoting mental health and work-life balance. Also, utilizing advanced analytics can help identify trends and challenges in employee well-being, allowing an organization to proactively address issues and improve its support systems. By combining technology and a human-centric approach, organizations can create a positive and supportive work environment for layoff survivors, fostering trust and well-being. This can lead to increased productivity and employee retention in the long run.

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References

Aujla, S., & Mclarney, C. (2020). The effects of organizational change on employee commitment. IUP Journal of Organizational Behavior, 19(1). Retrieved from https://ssrn.com/abstract=3797368

Brockner, J., Grover, S., O’Malley, M. N., Reed, T. F., & Glynn, M. A. (1993). Threat of future layoffs, self‐esteem, and survivors’ reactions: Evidence from the laboratory and the field. Strategic Management Journal, 14(S1), 153-166. https://doi.org/10.1002/smj.4250140912

Carrington, L. (2016). A qualitative phenomenological study of employee perceptions of the impact of layoffs (Doctoral dissertation, Walden University). Retrieved from https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=3903&context=disserta tions

Covey, S. M. R., (2006). The speed of trust: The one thing that changes everything (paperback ed). Free Press.

International Labour Organization. (2022). High-level independent evaluation of ILO’s COVID-19 response. Retrieved from https://www.ilo.org/wcmsp5/groups/public/—ed_mas/—eval/documents/publication/   wcms_854253.pdf

Malik, M. I., Ahmad, A., & Hussain, S. (2010). How downsizing affects the job satisfaction and life satisfaction of layoff survivors. African Journal of Business Management, 4(16), 3564. Retrieved from https://www.researchgate.net/profile/Ashfaq-Ahmad-24/publication/228364861_How _downsizing_affects_the_job_satisfaction_and_life_satisfaction_of_layoff_survivors/ links/53cffd650cf25dc05cfc4997/H