Layoffs can be devastating for employees. They may feel demoralized, angry, bitter and threatened by their future at the company.
It’s never been tougher to find work these days. With the rising costs of living, unemployment rates, and a shortage of skilled workers, employers are looking to cut back on employees.
So far in 2023, around 1,600 tech workers have been laid off per day on average worldwide, including in India.
This blog will discuss the effect of this massive layoffs on the employees.
Remaining Employees
The news of layoffs can be heartbreaking for remaining employees, who may experience survivor guilt, worry about the welfare of their former colleagues and feel a sense of loss and regret.
They may also need help with increased job insecurity and degraded company culture.
Keeping workers informed can alleviate their fears and help them feel more confident about the organization’s future.
Companies should offer frequent, open communications, such as virtual town halls or brown-bag lunches.
In addition to a clear and consistent communication platform, leaders must be sensitive to the feelings of their staff after a layoff.
Listening to employees’ concerns, addressing their questions and offering support can go a long way towards restoring morale and loyalty after a layoff.
Survivors
Layoff survivors often face feelings of guilt and shame, as well as anxiety and fear.
This can have serious consequences for their work, productivity and morale.
Survivor syndrome, as it’s known, can lead to sleepless nights, low self-confidence and decreased performance.
Employees may even question their commitment to the company, suggests Batia Wiesenfeld, an associate professor at New York University’s Stern School of Business.
The good news is that there are steps HR professionals can take to help their employees cope with these emotions.
Experts recommend engaging external resources and implementing behavioral change strategies to support employees.
Communication is vital to helping employees who have been laid off navigate this traumatic experience.
Managers should systematically communicate with staff about the layoff process, explain what’s happening to them and how they’re valued at the company.
Retaining Employees
It cannot be easy to maintain your workforce after a layoff. But if your company values its employees and is committed to building the right culture, you can do much to keep your best workers in place for a long time.
To counter this, you should be honest and transparent about the reasons for layoffs and make it clear that all staff will have to adapt and adjust accordingly.
This will help your team members cope with the news healthily.
The last thing you want is to see your remaining employees lose motivation and focus because of the change.
This is why it’s essential to keep them informed of the situation and encourage them to build a new sense of community among the team.
Managers should offer one-on-one conversations with surviving employees, as well as a chance for them to ask any questions they might have.
This is an excellent opportunity to uncover any concerns specific to each employee’s role or department.
Exiting Employees
Research shows that a recent layoff can ripple effect on other workers. This “turnover contagion” can leave those affected feeling less secure, overworked and demoralized.
HR leaders can mitigate this effect by communicating frequently and clearly. Holding group meetings, brown-bag lunches, and virtual town halls are good ways to keep the dialogue open.
The company should also be honest about the reason for the layoffs. If employees are unsure why they were laid off, they may start a rumor mill and create mistrust.
Employees should be informed about the severance packages and outplacement services provided to those who were let go.
This information can help them feel supported and reassured that they were treated with dignity and compassion.
Conclusion
Though it is hard for employees laid off from their respective jobs, life goes on, and they should not lose hope.
One should keep on working on their skill development and put all their efforts towards making them better for their next chapter in life.
Nothing remains the same forever, and these challenging times will also pass.
What is your opinion on this layoff period by top tech companies?
Started working as a digital marketing expert, Varun Sharma is now also a well-known digital marketing speaker – a speaker on performance development, and a trusted mentor to businesses in the digital world. His keynote expositions are based on the digital marketing theories, which provide a fascinating insight into the secrets of high performance.