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.
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"If a line manager is talking to employees about the corporate vision and strategy, particularly in a large organization with multiple branches, employees are going to wonder how they know that because they're not up with the big wigs," Kovach says. "There's more credibility if the strategic messages come from senior leadership, and line managers deal with the everyday issues."
Following the layoff, an employer should encourage departmental team-building exercises, Kovach says. As finances are obviously tight during the time, these do not have to be expensive events. Simply leaving the office to discuss the future in a different context is often enough to re-energize employees. This gives employees the chance to understand what to expect and better understand the situation in a more relaxed environment.
Team-building events can especially be effective when senior management participates, as well, Kovach adds. When senior management takes the time to meet with employees, it shows that they are remaining engrained within the organization, which provides almost a sense of comfort among employees.
"Involving senior management in team building that allows employees to see that the company still has that energy and is still going," Kovach says. "It helps keep up that momentum when employees see senior managers have hope. In turn, that will then encourage employees."
Even when the initial weeks following the layoff have passed, Kovach recommends continuing conversations with the remaining employees. The conversations should not include any job-security promises, but discussing team goals and objectives helps those employees see that encouragement and comfort, which can help them stay motivated and engaged.
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