Unfortunately, layoffs can sometimes be necessary to keep a business afloat. However, they can also significantly affect the workforce.
In this article, we’ll discuss the many challenges that come with massive layoffs. We’ll also go through a number of strategies that can help keep the workforce engaged during a tough transition process.
Let’s get started.
What Is Classified as a Layoff?
As commonly known, layoffs stem from the decision to cut costs by terminating the employment of a certain percentage of the workforce. An alternative term for this is downsizing, which refers to the objective of reducing the size of the company.
Unlike regular termination, which can often result from performance issues or misconduct, a layoff is driven by other business factors – such as restructuring or unexpected profit loss.
What Are the Most Common Causes of a Layoff?
There are usually several different factors that play into the decision of cutting costs at a company. Some of the most common ones are:
Debts
Mergers
Company relocation
Acquisitions
Personnel restructuring
Lack of performance
Offshoring
Post-Layoff Challenges
When layoffs happen, it’s not just the laid-off employees who are affected. The remaining workforce also feels the ripples of this disruption – even if it’s at a time when companies depend the most on their performance.
So, how does laying off an employee affect the employer and other employees? Well, in the aftermath, your team will struggle to keep up with the extra workload that former teammates have left behind.
This can lead to heightened levels of stress – and the risk of burnout.
As a team leader, your most important tool at this critical juncture is having a strong contingency plan.
Some common challenges resulting from a downsized workforce are:
Loss of talent and expertise
Decreased morale
Deflated engagement and motivation
Lower productivity
Higher voluntary turnover
Elevated absenteeism
Layoff Support – How to Help Laid-Off Employees
There are several steps you can take to mitigate the effects of downsizing. According to the Harvard Business Review, how you approach workforce transition can very well make the difference between a smooth transition landing – and a wholly broken company.
Below are three approaches based on the idea of emotionally intelligent leadership as a driver for organizational development in good times and bad.
1. Communicate Clearly
Communicating openly, honestly, and regularly about what’s going on is key. You can’t afford to leave your staff in the dark because in the dark is where most people assume the worst will happen.Be candid about the measures that have been taken and why. You’ll need to create safe spaces where the team can discuss the situation and what comes next.
Not everyone is going to want to vent their concerns in public – so try to be available to those who’d rather do it in private.
2. Motivate the Team
This can feel particularly tricky when your team is watching their colleagues and friends clean out their desks – but you’ll still need to make the effort.
One of the smartest ways to do this is by ramping up that employee recognition strategy you might not have paid attention to in months because you were busy planning the layoff process.
Celebrate the accomplishments of the team and recognize the important work that your employees are doing in spite of the hardships you’re all going through. To cope with the stress and anxiety of it all, offering staff a wellness gift card can be a way to show that you want them to prioritize health and self-care during these turbulent times.
3. Be Supportive and Empathetic
Here’s a hard truth: your remaining team members aren’t going to work harder because they’re grateful they got to keep their jobs.
In fact, a study made by Leadership IQ found that 74% of employees who stayed after a layoff experienced a decline in their own productivity.
On the other hand, those who felt that their managers were open and approachable were 70% less likely to report a decline in productivity. These statistics demonstrate that supportive leaders play a crucial role in helping employees deal with the emotions and trauma of workplace restructuring.
Helping the Team through Hard Times
During corporate turmoil, organizations will often resort to routine layoffs and budget cuts. While these changes are vital to keep some companies afloat, it is also important to focus on the well-being of employees.
By using emotional intelligence as a strategic approach, you can help the team stay healthy, productive, and engaged – even through the hard times.
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