Managing Employees After a Layoff

The impact of layoffs on remaining employees can be devastating, especially in a small business. From paralyzing sadness, to survivor's guilt, to relief from being spared, the emotions can derail even the most well-managed workplace, making managing employees after a layoff very challenging for a business owner.

Layoffs trigger many emotions. Fear of change and a feeling of helplessness are two of the most common. Additionally, employees lose trust in an organization, especially if there are a lot of hush-hush meetings in the lead-up to the layoffs.

To address those emotions, don’t keep information about the company’s health to yourself. The rumors will fly and cause even more damage. Instead, speak openly about the company’s financial state, whether there may be more layoffs (everyone is wondering), and what employees can do to help out. If you don’t know whether more will lose their jobs, say so. Express empathy for employees feeling anxious about their uncertain futures.

As a manager or company owner, keep your office door open and invite employees in at any time to discuss the situation, in addition to answering questions as openly as you can in staff meetings. You may even consider hiring a professional counselor to come in and talk with employees privately.

Offer remaining employees new opportunities to grow

For the business owner managing employees after a layoff, striking a balance between acknowledging employees’ feelings and getting back to business is key. Don’t let employees dwell on the past. Let them know that you’re doing everything you can to keep the company afloat and avoid more losses. You will need to reassign some of the laid-off workers’ duties; try to do so with an eye toward offering employees opportunities to expand their skills or add a more creative aspect to an otherwise dull job. And don’t forget to offer the training needed to perform their new tasks. This will help take the sting out of what may feel like more work for the same pay.

More articles from AllBusiness.com:

• Handling Employee Layoffs as a Small Business Owner
• Laying Off Employees: Legal & Personal Concerns
• Next Steps After a Layoff
• Did You Write a Reference Letter for that Laid-Off Employee?

Take any opportunity you can to reconnect the team. Ask remaining employees to offer solutions to process problems or ways in which the company can increase revenue. And if they make valuable suggestions, form teams of employees to implement the solutions. This tactic helps employees feel committed to the mission of keeping the company alive. Remaining employees need to feel connected to and engaged in the company or they will surely be looking for other jobs.

Focus on employee recognition

Restore morale by recognizing good work frequently and with incentives and bonuses. You may not be able to give out money, but you can offer employees a day off, small tokens such as movie tickets or a nice restaurant meal for two, or even just a public acknowledgment of “Great job!” Without being too chipper, point out the ways in which the company and its employees are emerging from the slump.

The truth is, in many organizations, morale will suffer and productivity will decrease after a layoff. Your job is to minimize the emotional damage and the time it takes to get back to work. If you’re honest, transparent, and communicative, your employees will get back to business quickly.

RELATED: 16 Key Issues in Negotiating an Employment Severance Package

Emily Esterson is a contract writer, editor, and publisher specializing in small business topics.