This article was previously published in NJBIA (New Jersey Business & Industry Association). To view it on that site, please click here.
Managing morale after announcing bad news is critical to a company’s long-term health.
With workforce reductions, for example, the remaining employees will be concerned about their own futures: Will their jobs be next on the chopping block? Should they start looking for a position elsewhere? They’ll feel upset, insecure, stressed and anxious, which can lessen engagement, reduce productivity, and impact turnover. Further, if remaining workers feel their departing colleagues were dealt with poorly or with disrespect, staff dedication to the company and concern for its ongoing success will suffer.
CVS recently announced it would lay off nearly 3,000 employees as part of a cost-cutting measure: 111 positions are on the block at its corporate office in Florham Park early next year. J&J, Bristol Myers Squibb, Bayer, Prudential, Staples, and iCIMS have also announced layoffs at New Jersey facilities this year, as did Wayne YMCA and Rider University.
In all, more than 50 New Jersey companies filed WARN (Worker Adjustment and Retraining Notification) notices during the first nine months of 2024 — a state and federal requirement of companies employing more than 100 workers that intend to reduce their workforce by 50 or more employees within a 30-day period.
Striking a balance between strategic and compassionate internal communications is key to buffering a negative impact on morale.
Here are five things you can do to help support staff and help maintain morale:
1. Communicate job security and ongoing stability
- After a layoff, remaining workers will reasonably fear for their own jobs. Acknowledge that concern up front. Be transparent about the company’s financial situation — your staff will want to know. If you can honestly and authentically assure employees that further cuts are not anticipated, say so. Workers need to know that you recognize their concern for their personal welfare and that of their families.
- Messaging about long-term goals, giving employees clear, actionable objectives tied to the company’s strategic plan, can further help allay fear and uncertainty. Workers are more likely to work to help to preserve the company’s future if they believe you truly expect them to be part of that future.
2. Demonstrate compassion
- Acknowledge the difficulties (financial, emotional and otherwise) faced by the terminated employees and the remaining staff. It’s crucial to address the emotional toll openly and with empathy.
- Ensure that those who remain feel valued. Let them know that their contributions are appreciated, and that they are an integral part of the company’s future. Be direct in addressing suspicions that remaining staff will be expected to pick up the slack.
- Make sure remaining staff know your resources for stress management and mental health, such as counseling services or employee assistance programs (EAPs).
3. Create and maintain open communications
- Keep employees informed about the company’s direction, the reasons behind the decision, and what is being done to ensure future success. Encourage employee engagement by asking staff to voice concerns, ask questions, and share feelings. Be approachable and listen actively. These kinds of leadership communications build confidence and trust. Employees need to see the big picture to feel a sense of purpose and security.
4. Boost leadership visibility
- After a significant staff reduction, demonstrating strong, visible, compassionate, engaged, and accessible leadership reassures employees that the company is being actively led. This can’t be simply performative — your staff will recognize insincerity instantly. Employees will follow genuine emotional cues of leadership. If leaders act with confidence and clarity, staff will more likely remain calm and focused.
5. Monitor and Adjust
- Ongoing monitoring of morale is a must. Conduct anonymous surveys or use other tools to gauge how employees are thinking – and feeling. Ask specific questions that will help identify their concerns, engagement level, and sense of being supported. Follow up quickly and appropriately to demonstrate that you value their input.
- Be willing to adapt leadership practices – particularly as regards internal communications. If employees need more reassurance, refocus messaging. If they feel overworked, express willingness to scrutinize and reconsider responsibilities.
Clear, empathic, forward-looking communications in the aftermath of layoffs can help rebuild trust and establish confidence.
The key is balancing transparency with reassurance, providing emotional support to those affected, and actively engaging employees in the company’s future.
