When layoffs must happen, it can severely damage morale among the remaining employees, which often leads to reduced engagement, productivity and even retention. But an employer can prevent this by establishing strong communication with employees immediately following the layoff, says Sheryl Kovach, president and CEO of Kandor Group, a human resources consulting firm in Houston.

"Immediately after a layoff occurs, there's a lot of uncertainty that employees tend to carry with them," Kovach says. "Alongside with that comes anxiety, tension and confusion, so unless the employer reaches out and talks to employees about how they are feeling, it could create a propensity for employees to start looking for other job roles, performance declines and the like."

When it comes to communication, it is most effective when certain messages come from senior management while other messages are delivered by line managers, especially among large organizations, Kovach says. Specifically, senior management should quickly address future strategic visions, and line managers should focus on employees' daily concerns.