7 Shocking Stats On How Mass Layoffs Affect Employee Morale
Many tech giants like Amazon, Alphabet (Google), Microsoft, Meta (Facebook), and Zoom have mass layoffs due to concerns about an economic slowdown. Other renowned companies such as Salesforce and Accenture also have announced layoffs, the latter with up to 19,000 jobs cut.
Not only are the employees of these large Silicon Valley companies or international enterprises concerned that their jobs might be at risk, but also people working in smaller organizations. The current economic situation and the lack of job security we see in the labour market every day are affecting the mental health of many employees.
BizReport recently published a study with seven alarming findings on how mass layoffs impact people’s mental health and morale.
The Hidden Toll: 7 Startling Statistics on Mass Layoffs
- 81% of layoff victims say they experienced at least one symptom of depression after losing their job
- 60% of layoff victims are less likely to trust their next employers
- 73% of layoff victims struggle financially after losing their jobs
- 69% of layoff victims didn’t receive any form of support from their former employers
- 71% of layoff survivors say their work motivation has declined since the layoff
- 65% of layoff survivors say they have been overworked since the layoff
- 61% of layoff survivors say they are less likely to recommend their company as a great organization to work for
As we can see, the effect on the people who lose their jobs can be devastating, but mass layoffs also leave a negative mark on the employees who remain in the organization.
“Layoffs can also damage company culture — in many cases, irrevocably. The targets of a layoff often leave upset and betrayed, but the feelings of those who remain can be the most damaging. Productivity amongst survivors drops on average by 12%, a symptom of survivor’s guilt,” says Danny Codella.
Productivity amongst layoff survivors drops on average by 12%.
However, there are many cost-effective ways managers can provide support and reassurance to their employees in uncertain times like this that put the focus on the human side.
How to Mitigate Negative Impacts of Layoffs
According to Quantum Workplace, these are the best ways to boost employee morale after layoffs:
Layoffs can leave employees feeling uncertain, disengaged, and overwhelmed. To maintain a positive work environment and keep your team motivated, here are five key strategies to boost employee morale after layoffs:
1. Communicate Openly and Often
- Be transparent about the reasons behind the layoffs.
- Hold one-on-one meetings to address concerns and offer support.
- Show employees they are valued through recognition and appreciation.
- Unite teams by setting clear goals and realigning the company’s vision.
2. Support Impacted Teams and Rebuild Trust
- Identify the teams most affected by layoffs.
- Provide resources and emotional support to help them adjust.
- Strengthen team collaboration to rebuild morale and engagement.
3. Manage Change Effectively
- Implement change management strategies to ease transitions.
- Offer training and development programs to help employees adapt.
- Encourage leadership to provide consistent guidance and reassurance.
4. Gather and Act on Employee Feedback
- Conduct pulse surveys to measure morale and engagement.
- Address employee concerns and make meaningful improvements.
- Reinforce a culture of trust and open communication.
5. Monitor and Maintain Employee Engagement
- Keep track of engagement levels using HR tools and analytics.
- Identify signs of burnout and take proactive steps to improve morale.
- Foster a workplace that encourages productivity, well-being, and retention.
By focusing on clear communication, team support, change management, feedback collection, and engagement monitoring, businesses can minimize the negative effects of layoffs and create a resilient and motivated workforce.
What would you recommend to boost employee morale after mass layoffs? Let us know in the comments below.
Denise Burnett
Communication and compassion are of the utmost importance. While all upper level decisions and conversations can’t be shared with staff, there needs to be a constant flow of information. Being withholding and secretive can poison the workplace and cause irreparable damage. Giving staff as much forewarning as possible, not blindsiding them, and sharing rationale can better prepare staff for big changes and will show that you care about the impacts on them.
Harman Dhatt PCP
After mass layoffs, transparent communication is vital. Hold team meetings to address concerns and provide reassurance about the company’s direction. Offer support through counseling services and encourage open dialogue. Organize team-building activities and recognition programs to foster a sense of belonging. Highlight opportunities for growth and career development to instill hope and motivation among remaining employees.
I couldn’t agree more!