Will Loud Layoffs be the Newest Trend to Impact Employee Engagement?

The past few years have seen several trends in the business community, from the Great Resignation to Quiet Quitting. One of the latest trends that many are referring to is “Loud Layoffs,” and it is having a significant impact on how people feel about their jobs.

2023 has been a year of large-scale downsizings, particularly in the financial services and tech industries, as companies look for ways to reduce costs and weather-changing business headwinds.

Amazon, Meta, and Salesforce are just a few of the latest tech companies to announce job cuts after rapid hiring over the last several years.

Among U.S.-based companies alone, layoffs were up 172% in the fourth quarter of 2022, according to the latest report from Challenger, Gray and Christmas.  

How to Keep Remaining Employees Engaged After a Reduction in Force

Layoffs and reductions in force affect all employees in a company, as well as the organization as a whole. Senior leaders and managers are challenged with making sure their remaining employees stay motivated and productive while at the same time achieving business performance and metrics with fewer hands on deck.

And that’s no small feat when a recent survey by Biz Report showed that 70% of employees who survive a layoff report a decline in their motivation at work. 66% report feeling overworked after the job cuts, and a third of those who survived a layoff believed that things would worsen for their company in the future.

Many employees ultimately decide to leave their organizations because of job insecurity, higher levels of stress, and increased burnout.

If your organization is planning or executing a reduction in force, here are a few ways you can help remaining employees stay engaged:

• Offer opportunities for professional growth and development, such as training programs, stretch assignments, and mentorship opportunities.
• Encourage open, two-way communication between managers and employees and a psychologically safe space to share and discuss questions and concerns.
• Promote a positive work environment by encouraging a sense of community and providing time for team-building and social activities.
• Celebrate successes, big and small, and recognize and reward employees for their contributions.
• Involve employees in decision-making and give them a voice in shaping the future of the organization.
• Provide meaningful work and challenging projects that allow individuals to use their skills and abilities to contribute to the organization's success.

Even though a reduction in force is a highly challenging time for any organization, companies that can balance this event while maintaining a positive employee experience can move toward the future with minimal negative impacts on morale and productivity as they find their balance again.

Remember that the key to keeping employees engaged after a reduction in force is to show empathy, understanding, and support. By communicating clearly, showing appreciation, and investing in your employees' development, you can help rebuild morale, create a positive work environment, and keep your remaining employees motivated and engaged.

Learn more here about how we can help your employees become invested in the mission, engage their talents, and reach their full potential.