Ways to Sustain Productivity and Employee Engagement in The Face of Layoffs

Ways to Sustain Productivity and Employee Engagement in The Face of Layoffs

Ways to Sustain Productivity and Employee Engagement in The Face of Layoffs

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All employees in the company are impacted by mass layoffs and force reductions. The surviving employees may be delighted to keep their job but have survivor guilt. While laid-off workers deal with the financial difficulties of losing their source of income as well as the psychological damage of feeling rejected, the remaining employees may not.

While a lack of growth and development or significant changes inside the organization might cause low employee engagement and a slowdown in productivity, worker productivity is also likely to decline after layoffs and restructuring due to uncertainty about the future or being overburdened with new jobs. Developing a plan for the remaining staff is essential when contemplating a significant downsize.

In order to prevent attrition, it’s crucial to make sure that your employees feel psychologically comfortable, respected, and engaged with the company. Even those whose jobs are secure can become anxious when hearing about layoffs. As employees lose faith in the business, they become more prone to look for and accept alternative possibilities, which increases turnover and lowers productivity.

Impact of Change on Staff Output

Three-quarters of employees who survive a force reduction have diminishing productivity, according to a Leadership IQ research. It’s possible that those that decide to stay won’t keep working productively. The surviving employees may get disengaged from their work due to feeling overworked and worn out as a result of the growing tendency of quiet resigning and resentment surrounding quiet promotions.

Employees are aware that additional rounds of layoffs frequently occur after the initial round. These workers might begin spending more time updating their resumes, expanding their networks, and proactively preparing their next professional move rather than waiting for their turn to be released.

Top 5 Suggestions for Retaining Workers During a Layoff

You will get greater results and have minimum productivity loss if you prepare your team for layoffs. The following advice can enhance staff morale, reduce a slowdown in production, and prevent unwanted turnover following a force reduction:

Transparent communication with survivors:

Morale may suffer if the surviving workers are not informed about the layoffs. Employee misinformation spreads if they learn about the force decrease via co-workers, the media, or other sources. Additionally, false information or rumours regarding the layoffs may fuel unease and a lack of confidence. Regarding workforce changes, it’s crucial to be open and honest.

Employees are more inclined to accept the decision to lay people off if they understand the reasoning behind it. Your explanation should highlight the options you considered as well as why the reduction is the best course of action at this time. The confidence and loyalty of employees are systematically destroyed by managers who dodge queries about layoffs or make up tales to lessen the blow. Stating the facts aids in resolving any worries that may surface.

Make A Public Announcement

These days, word of the force reduction spreads like wildfire and could endanger the reputations of both your company and your employers. When the news of the company’s layoffs breaks, you might need to make a statement to convince your clients, staff, vendors, and the general public that you are taking steps to stabilize the business.

Employees are more likely to have faith in the future of the company when you are transparent about the decision-making process that resulted in layoffs.

Your message should acknowledge the harm done, explain why there were layoffs, and suggest ways to assist those affected. For instance, when Stripe announced the layoff of 14% of its workers, its CEO, Patrick Collison, apologized sincerely and acknowledged the events that led to the layoff in an email to all employees. Authenticity and empathy can aid in fostering trust among your surviving employees as well as the displaced workers, however not every firm needs to take the same approach.

Ensure the Welfare of Departing Workers

The way you handle departing employees has an impact on the remaining employees and reveals something about the culture of your business. If you treat laid-off employees unfairly, your productivity will probably suffer and your remaining employees will lose faith in the business. The surviving employees feel more at peace and know that you value their contribution to the company when the laid-off workers are taken care of. It might also reassure them that the company would look after them if they were laid off as well.

Outplacement services not only assist departing employees in transitioning to new careers, but they also give your remaining personnel reassurance that the company loves and cares about their success even after they are let go.

Wellness Programs and Employee Support

Keep an eye on employee wellbeing to monitor engagement levels across the board. Programs for promoting employee wellbeing can raise spirits and guarantee that employees are in top physical and mental condition.

For instance, educational courses can assist the remaining employees in overcoming survivor’s guilt, which can lead to a decline in productivity. Personal coaching or development programs can assist employees in visualizing and achieving their goals within the new organizational framework in addition to counselling and workshops.

Regularly polling your workforce can help you pinpoint the initiatives that would most benefit them, the issues they are having, and the fresh obstacles that have arisen as your business has changed. Employees can be concerned about taking on more responsibility or playing different roles as a result of the smaller workforce. Take their opinions seriously and develop programs and action plans that specifically address their problems.

Encourage Open Discussion

Clear communication helps reduce any uncertainty that may follow a layoff. You should use one-on-one talks to talk about issues that employees are having. Respond to the challenging inquiries from employees about the company’s future after layoffs. Ask your staff for feedback on their concerns and any uncertainties they have.

Additionally, anonymous surveys can provide your employees the freedom to express themselves honestly without worrying about being punished, which is crucial when anxiety levels are high. By communicating the steps, you are taking in response to that input, you can increase trust and psychological safety.

Remaining employees feel cherished and seen by their leaders when you encourage open communication. When you work together with employees, you develop stronger bonds and are better able to support them during the transition.


In the face of layoffs and restructuring, it is crucial to proactively address the potential pitfalls that can erode productivity and employee engagement. By implementing a comprehensive approach that encompasses transparent communication, reputation management, compassionate departures, employee well-being programs, and open dialogue, organizations can successfully weather the storm of workforce reductions while nurturing a motivated, engaged, and loyal workforce. Ultimately, these efforts not only safeguard immediate productivity but also contribute to the long-term success and resilience of the organization.

If you’d like to learn more about how our tailored strategies can help your organization navigate layoffs and workforce reductions while sustaining productivity and employee engagement, please don’t hesitate to get in touch with us at sales@primorissystems.com.

Our team of experts is here to assist you every step of the way. We look forward to the opportunity to discuss your specific needs and collaborate on a plan that best serves your company’s goals and values.

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