While corporate layoffs can lead to financial savings and a more streamlined workforce, they also pose several potential challenges, including falling engagement among remaining employees, post-layoff turnover, and reputational damage. However, while these issues can negate the intended benefits of layoffs, you can mitigate the risks with a well-crafted corporate layoff plan.
By supporting laid-off employees and investing in the success of those who remain, your organization will be more resilient and better positioned for future success. In this post, discover strategies for thriving after a layoff and achieving sustained business growth.
The Potential Rewards and Risks of Corporate Layoffs
Conducting layoffs during challenging times is a common strategy for achieving immediate financial relief and operational efficiency. For many companies, it’s a matter of survival. However, economic uncertainty and financial pressures aren’t the only layoff triggers. Even in a strong economy and during periods of business growth, a company may pursue layoffs to:
- Correct over-hiring
- Align roles with shifts in business strategy
- Leverage new technologies, such as AI
- Restructure underperforming business units
- Ensure the company is agile and ready for future challenges
While layoffs can support an organization’s continued growth, they can backfire if not managed properly. Research shows that even well-executed layoffs can lead to the following adverse outcomes:
- Reputational Damage: A company’s layoff announcement can lead to a negative perception of its brand, especially if it seems insincere or if employees are treated poorly.
- Increased Resignations: Teams affected by layoffs often see a rise in resignations.
- Decreased Engagement and Productivity: 71% of layoff survivors in one study said they felt less motivated to work after the layoff.
- Erosion of Trust: In one survey, 66% of employees said company layoffs made them feel less trusting.
Strategies for Thriving in the Aftermath of a Corporate Layoff
Given the potential risks associated with conducting a layoff, it’s critical to handle it effectively to minimize harm to employee productivity, engagement, and your company’s reputation. You don’t want to just survive corporate layoffs; you want to thrive in the aftermath. Here are three key strategies to make that happen:
1. Support Departing Employees
Today’s laid-off employees could become valuable new hires in the future. Even if they don’t return as “boomerang” employees, they might work for your customers or industry partners. Therefore, ensure they speak well of your company by providing a positive layoff and offboarding experience. Research by Gallup found that employees who leave on good terms are 2.9 times more likely to recommend your organization to others than those with neutral or negative experiences.
Offering outplacement services is a great way to create a positive exit experience for laid-off employees. These services—resume polishing, job board assistance, and coaching—help individuals manage the emotions of being laid off, jumpstart their job search, and confidently focus on their future.
2. Retain Top Talent
Following a layoff, retaining your remaining employees is crucial, as they represent your key talent—high performers, effective leaders, and those with potential for future growth. Not only is retaining them crucial for maintaining operational strength and continuity, but losing them would mean spending time and money to find replacements.
To mitigate the effects of layoff anxiety and other emotions, reassure your remaining employees that their future is secure and that they remain highly valued members of the team. You can do this by:
- Offering retention bonuses
- Providing transparent communication
- Creating team-building opportunities
- Investing in their career growth
3. Boost Leadership Capabilities with Manager Training
To keep employees focused and ready to perform at their best, you need managers who can support their teams and successfully navigate an array of work challenges, including layoffs. Providing management coaching and training specifically for frontline and middle managers is an excellent way to achieve this. For example, Link Learn Coach™ is a microcoaching solution that helps managers master skills such as having difficult conversations, managing remote employees, and guiding teams through change—in just 8 weeks. By investing in your managers, you not only enhance their leadership skills; you also demonstrate your commitment to their success, which can significantly boost morale and loyalty.
When enrolled in a leadership coaching program, your star talent gets a clear message – you have plans for their future. It’s unlikely they are being developed to someday soon be laid off. The beauty of Link Learn Coach is the 1:Me, human connection that people are often missing today. A coach fosters an empathetic human connection and can be someone who holds the learner accountable to take action. This program can best be described as microcoaching at a micro price, since the engagement is just eight weeks and leverages online learning content as well as direct coaching.
Download the Link Learn Coach brochure to see how the program works.
Empower Your Leaders and Boost Your Organization’s Resilience
Layoffs are a fact of life for many organizations, but when managed effectively, they can be the key to not just surviving but thriving. To prepare your rising leaders for the post-layoff future, invest in their development. You’ll be sending a clear message that you want to retain them for future roles.
Look for affordable, scalable development programs, such as Link Learn Coach, to enhance their emotional intelligence, build competencies in having difficult conversations, and grow their change management skills. Link Learn Coach™ builds these skills in managers through the powerful combination of online learning and personalized microcoaching. Stronger leaders will strengthen your organization’s continued growth. Contact us to learn how IMPACT Group can help your organization thrive – before, during and after a layoff.
