Over the last few weeks, federal employees have been faced with an unsettling reality—department shutdowns, layoffs, and a wave of "deferred resignations." These buyouts, designed to reduce workforce costs, require employees to decide by February 6 whether to accept severance through September 30. While the program may seem like a cost-saving measure on the surface, its execution raises concerns about fairness, transparency, and long-term impact.
The government has much to learn from corporate America’s workforce strategies—both its successes and failures. Private-sector companies that implement layoffs or voluntary severance programs recognize that how employees are treated during transitions affects morale, retention, and future hiring. If the government wants to maintain its reputation as a stable employer, it must approach workforce reductions with a more strategic and employee-focused mindset.
Recommended For You
What could the government do differently?
1. Internal redeployment should be an option
In corporate America, layoffs don’t always mean losing talent entirely. Many companies make efforts to redeploy employees to different departments where their skills are needed. This preserves institutional knowledge, stabilizes morale, and minimizes the financial and operational costs of hiring new workers down the line. The federal government should adopt a similar approach, encouraging employees in affected departments to apply for internal roles before resorting to buyouts. This would demonstrate a commitment to workforce sustainability rather than relying solely on cost-cutting measures.2. Communication needs to be transparent and respectful
How an organization communicates difficult decisions reflects its values. In the corporate world, companies that handle layoffs with empathy and clarity tend to maintain trust with employees and the public. The federal government, however, often frames layoffs as a bureaucratic necessity, offering little in the way of human-centered communication. Employees deserve clear explanations, compassionate dialogue, and open forums for questions—not just an impersonal deadline to sign away their employment.Related: HHS to cut 10K jobs, including 300 at CMS
3. Career transition support matters
Offering severance is only part of the equation. Employees need structured career transition programs that help them secure their next role—whether in the public or private sector. Companies that downsize often provide outplacement services, resume coaching, and networking opportunities. Without this support, many employees may hesitate to accept buyouts, fearing job market uncertainty. If the goal is to encourage voluntary departures, providing meaningful career assistance would increase participation and reduce long-term disruption.A defining moment for the federal workforce
If the government truly wants to remain a competitive employer in a rapidly shifting labor market, it must rethink how it handles workforce reductions. Employees shouldn’t feel like disposable line items in a budget—especially those who have dedicated years of service. By integrating career transition support, redeployment opportunities, and more thoughtful communication, the government could transform a difficult situation into one that feels fair, strategic, and ultimately beneficial to all parties involved.
Failing to do so risks more than just short-term employee dissatisfaction. It risks turning the federal government into an employer of last resort—rather than one that sets the standard for stability, opportunity, and fairness in the workplace.
Raymond Lee is the Founder and President of Careerminds, a career.io company and a global provider of contemporary outplacement, leadership, and career-development solutions. As an industrial and organizational psychologist with over 25 years of experience, he has helped employers in both the private and public sectors develop, offboard, and transition their employees.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
