Layoffs, downsizing or business cuts all refer to reducing the number of employees in a business, typically for financial reasons. Reestablishing corporate morale among the remaining employees after a layoff is critical to maintaining productivity and corporate advancement.
- Good morale after a layoff serves as a building block to restore employee's confidence in the company. Higher morale levels are important for retaining critical employees.
- When planning and instituting a layoff, adequate and frequent communication and actively listening to remaining employees can establish higher morale.
- Managers who show empathetic concern and take responsibility for returning the company to growth are a key component to regaining employee trust and increasing morale.
- Immediately after a layoff there is an adjustment period when job insecurity and loss of coworkers result in lower morale. After the adjustment period, employees go through a healing period and then return to productive employees with higher levels of morale.
- Layoffs cause employees to lose trust in managers and in the company, which can be difficult to regain after a layoff.
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