4 Ways to Improve Morale & Trust After Layoffs
By Jennifer Dulski, CEO & Founder of Rising Team
While the relentless waves of recent layoffs have often been meant to assuage investors looking for cost cuts, these measures have deeply eroded workplace morale, significantly impacting employee productivity and overall company performance.
Now, the path forward for business leaders demands laser-focus on revitalizing workplace culture to boost employee engagement and investor confidence. Leaders today are tasked with a critical mission: to rebuild trust and to inspire their teams and stakeholders towards a future vision of stability and growth.
The Roots & Ripple Effects of Layoffs on Team Performance
The origins of these layoffs can partially be traced to overhiring during the pandemic. As the pandemic subsided, many companies discovered they no longer needed some employees and responded with headcount reductions. The recent economic challenges also led to waves of layoffs as investors looked to companies to cut costs and increase efficiency.
The rounds of layoffs that followed have understandably impacted workplace morale. Post-layoff survivors try to make sense of what happened and worry they are next. As a result, they feel less connected to their organizations’ missions. According to a recent Gallup survey, employees feel more distrustful of leadership than they did four years ago.
Another repercussion from layoffs is that many companies restructured teams as a result, often removing layers of middle managers. Gallup reports that 51% of managers say restructuring of teams has been a major complication post-pandemic, and 64% of managers say that employees have additional job responsibilities as a result.
These challenging workplace dynamics directly impact company performance. A recent Leadership IQ study of over 4,000 employees who survived layoffs found that 74% reported a decline in productivity, and 69% reported a decline in the quality of their company’s product or service.
Considering these ripple effects on performance, it’s understandable that investors are less confident. To win back their confidence, leaders need to focus on restoring trust from their most important resource: their people.
Strategies to Improve Morale & Build Trust
To thrive post-layoffs, leaders must focus on enhancing performance, retaining top talent, and restoring trust within the organization.
Here are four strategies business leaders can use to reconnect with their teams and boost confidence among investors:
1. Reinspire hope for the future
Building trust with both employees and investors starts by re-anchoring them in the company’s core mission. This is an opportunity for leaders to use the art of storytelling to paint a picture of an inspiring future and the critical role their organization plays in their vision.
Further, it’s essential for leaders to help employees understand how they each directly contribute to this mission so they feel empowered and connected to the organization as a whole. This clarity can help make individual contributions a powerful collective force driving the company forward.
2. Create safe spaces for employees to speak up
Rebuilding trust in the workplace requires listening to employees and fostering an environment where they feel safe to express both their concerns and also their ideas. Leaders should use town halls, listening tours, and surveys as tools to gain insights into teams–understanding their motivators, concerns, and the support they require.
Regrettably, a common sentiment among employees is that they feel unheard. So, it’s important for leaders to not just listen but also to take visible and meaningful actions in response. Remember, the best talent is always in demand, so leaders should use this moment to show they value their remaining employees and ensure they retain their top performers.
3. Reinvest in culture and rebuild employee morale
There’s a natural inclination for leaders to get “back to business” following layoffs, yet the skepticism and distrust among employees is hard to ignore.
In order to build culture and improve morale, it’s essential for leaders to carve out dedicated time to help employees connect on a personal level. This can be done during routine meetings, such as standups and all-hands, or in dedicated team-building sessions. The more connected people feel to their colleagues, the more likely they are to feel motivated to tackle big challenges and stay at the company for the long-term.
4. Equip managers to build high performing teams
With larger scope and more direct reports than before, the demands on middle managers are higher than ever to both deliver results and coach their teams. Yet, without tools to help them, they are not set up for success.
To support middle managers, leaders must first set reasonable expectations given their updated set of resources and team structure. Then, to help them become great team leaders, leaders should equip middle managers with tools to help them better understand, support, and coach their teams.
In the wake of widespread layoffs, it's clear that business leaders are standing at a critical juncture. To successfully navigate the path forward, they must prioritize rebuilding trust and morale within their organizations to win back employees and reassure investors.
By inspiring hope for the future, fostering open communication, investing in culture, and empowering middle managers, leaders have the opportunity to reshape their companies into resilient, high-performing organizations that are set-up to drive growth and innovation.
About Jennifer Dulski
Jennifer Dulski is CEO and founder of Rising Team, a SaaS platform that equips managers with the tools and training to build engaged, connected and successful teams. She has a wide range of executive experience in leadership roles at technology companies including, Facebook, Google, Change.org and Yahoo!.
From a very early age she was focused on bringing out the best in others, from her time as a crew coxswain to later teaching high school and founding and leading a Breakthrough program to help motivated students be the first in their families to go to college.
In addition to her role at Rising Team, Dulski currently teaches management at Stanford Graduate School of Business, serves on several boards, and writes about leadership and the future of work as a LinkedIn Influencer. Dulski’s first book, Purposeful, about how each of us can be movement starters, is a Wall Street Journal Bestseller.
She currently serves on the boards of WW (formerly Weight Watchers), the Change.org Foundation, and the Arctic Ice Project.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.