The Aftermath of a Layoff: Strategies for Keeping Your Team and Organisation Intact

A social media post by someone in the tech industry recently caught our attention.  It said: “Layoff Culture is Destroying Teams Collaboration – My team has changed drastically since the last layoff, and it has become now very toxic, nobody wants to help each other out and now everyone is trying to throw other team members under the bus, the reason being obviously that when the next round of layoff comes, the underperformers will get let go first so you want others to perform worse than you, they go as far as to give bad advice in how to deliver a feature or encourage bad coding patterns.  I can’t believe my workplace has come to this.  Congratulations big tech on making teams now less productive.”

It got us thinking about life after a layoff and how it poses a unique set of challenges for teams and organisations. People Management highlights that whilst those left behind will feel relieved, they may slowly start to feel anxious about the future, they may have found the process stressful, and they may even feel angry – this is probably worse where they feel the process hasn’t been handled correctly. People Management alludes to research that has shown that those left behind after redundancies are often ignored – even though they are the people that are holding the organisation together.

So is there a way of navigating redundancies so that scenarios like the above don’t happen?

Process

The first thing is to handle the redundancies in the correct way.  ACAS suggests looking at other options first – offering voluntary redundancy, looking at changing working hours and moving people to other areas of the organisation. All this before following a fair redundancy process, which can be found in detail on their website. They also highlight the importance of collaborating with staff and effective communication which seems like common sense.

Leadership in the Aftermath of a Layoff

Leadership in the aftermath of layoffs is pivotal; by leveraging effective communication strategies and providing support systems, you can steer your team towards a positive environment post-layoff. But what can managers do?

HBR suggest managers:

• Identifying projects and initiatives to postpone – When feeling overwhelmed, it’s common to work harder/longer. That won’t help the situation; it’s essential to take a step back and determine where your team should focus its valuable time and effort.
• Uncover hidden skills and knowledge – Managers may not fully recognise the diverse range of skills, knowledge, and capabilities within their team. Engaging in conversations with team members can unveil valuable resources waiting to be put into action.
• Simplifying existing tasks – In the face of increased workloads, look for opportunities to simplify processes. This might include streamlining communication channels or reducing the complexity of solutions and services offered to internal customers.

HRD Connect suggests:

• Adjusting expectations and roles – Conversations should be had between managers and teams to revise roles and responsibilities where necessary.
• Providing support – Supporting people at this time is even more important than normal – even more so for those working remotely as they may feel an even bigger disconnect.
• Promote collaboration – Redundancies can change team dynamics causing some employees to feel unsupported. So HRD suggests encouraging collaboration to help rebuild support networks.
• Foster open communication – Effective and transparent communication plays a crucial role in nurturing employees’ mental well-being, boosting engagement, and cultivating a culture of trust.
• Using technology – technology can be used as an effective way to communicate with all employees.

Effective Communication Strategies

The overriding theme in these leadership strategies is communication. Not only in the wake of layoffs but also before and during the process. Transparent and compassionate communication becomes the cornerstone of maintaining trust and morale within teams – then there should be no need to rebuild after the event. Here are strategies to ensure effective communication during this challenging time:

1. Direct and Honest Dialogue:

• Initiate conversations about layoffs directly from management to foster a culture of openness.
• Ensure employees hear about changes from a trusted source to maintain credibility within the organisation.

2. Facilitating Two-Way Communication:

• Encourage open dialogue to manage change effectively and to source budget-saving ideas from the team.
• Utilise various formats such as all-hands meetings or smaller group discussions, followed by one-on-one sessions to address individual concerns.

3. Detailed Information Sharing:

• Clearly communicate the rationale behind the layoffs, the anticipated benefits, and the details of the new organisational structure.
• Discuss the implementation process openly to align everyone’s understanding of the changes.

4. Inclusive Feedback Loops:

• Actively seek input from diverse team members to identify potential issues and gather constructive feedback on the transition’s effectiveness.
• Use this feedback to shape attitudes and behaviours positively, demonstrating that change can signify a new beginning.

5. Comprehensive Support Systems:

• Address emotional responses such as resistance or loss by acknowledging these feelings and discussing coping strategies.
• Provide tools and resources to help team members manage transitions and reduce feelings of isolation.

6. Consistent Management Involvement:

• Involve all levels of management in planning discussions and ensure they communicate effectively with staff throughout all stages.
• Regularly update remaining employees to alleviate anxiety, clarify changes, and maintain open lines of communication.

7. Outplacement and Loyalty:

• Offer outplacement services to those affected, reinforcing loyalty and trust among the remaining team members.

8. Transparent External Communication:

• Maintain transparency with the public and have a clear plan for external communications to manage your organisation’s reputation effectively.

These strategies can help teams navigate life after layoff, ensuring they feel supported and informed throughout the transition.

Conclusion

Whilst layoffs can be a challenging experience for everyone, when managed effectively, they should not result in in-fighting and competition like the scenario described in the opening paragraph. In managing the aftermath of a layoff, organisations have a range of strategies available to assist throughout the full redundancy process, which should make the post layoff time less challenging. However, maintaining open and honest two-way communication throughout remains the key factor.

To stay informed about the workforce’s sentiment in difficult times conducting pulse surveys are ideal. Our team is ready to design and implement employee pulse surveys that can provide valuable insights during challenging periods.

https://www.peoplemanagement.co.uk/article/1743180/survivor-syndrome-redundancies

https://www.acas.org.uk/manage-staff-redundancies

https://hbr.org/2023/06/how-to-manage-your-teams-workload-after-layoffs

https://www.hrdconnect.com/2024/01/10/the-aftermath-of-redundancies-how-to-regain-trust/

https://hbr.org/2022/11/layoffs-are-painful-but-you-can-communicate-them-compassionately