The Impact of RIFs:
How to Rebuild and Reinforce
Employee Connection
Research Spotlight
The first report from our 2023 Employee Connections Study highlighted results from a survey of more than 400 US employees from a diverse mix of industries, work locations, and job functions. Among the key findings was the revelation that most employees seek connection at work, but the majority don’t find it. Despite the positive implications of employee connectedness at work—higher engagement, productivity, and company performance—more than half of employees (56%) reported feeling disconnected at work.
We asked 400 full-time employees how they felt about their experiences at work in a 15-minute quantitative survey. The survey was conducted from June 15-19, 2023. All respondents work in organizations of 1,000+ employees and are at the level of VP or below.
Overall margin of error of +/- 4.9 percentage points at 95% confidence level.
The attitudinal segmentation was exclusively based on ratings of attitudinal statements. Neither the number of segments nor their defining attitudes were predetermined. All resulted organically from a purely mathematical analysis. Each segment represents a group of respondents for whom a particular set of attitudes is strongly connected.
A visualization of the data is available here.
In this addendum, we’ll share key insights on how layoffs and Reductions in Force (RIFs) impact an employee’s ability to become (or stay) connected to their work, coworkers, manager, and company leaders.
And we’ll arm HR and internal communications teams with tools for cultivating connection before, during, and after a company layoff.
The Link Between Layoffs and
Employee Connection Is Clear
The Link Between Layoffs and Employee Connection Is Clear
In 2023, after a year of record hiring, layoffs increased sharply amid growing concerns about inflation, consumer demand, and economic uncertainty. In tech, for example, nearly 1,200 companies laid off an estimated 262,000 employees—a more than 58% increase over 2022.1 Other sectors, such as retail, healthcare, and media, also experienced a sizable year-over-year increase in layoffs.2
As 2024 unfolds, the threat of more layoffs looms large.
4 in 10 business leaders expect to
have layoffs in 2024.3
3 Newsweek
Layoffs are distressing for the employees affected, but they also negatively affect retained employees’ ability to feel connected at work.
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Merely discussing layoffs at work can make employees feel 42% less likely to feel a strong connection to their organization’s culture and 49% more likely to look for a new job with another company.4
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In one survey, employees said the recent waves of layoffs make them feel less trusting (66%) and less secure committing to one employer (62%).5
Connected and Disconnected
Employees React Differently
In analyzing results from our 2023 survey, we identified a significant difference in how Disconnected and Connected Employees navigate the challenges of layoffs. Though both groups of respondents reported experiencing layoffs at some point, they varied greatly in attitudes about layoffs and the effect on their ability to connect at work. Here’s what we found:
About one in four have been through a
layoff at their current organization.
Key finding number 1:
Disconnected
Employees Are More
Worried About Layoffs
Employees who feel disconnected at work are more likely to negatively view how their company handles layoffs—reinforcing their disconnection.
How worried are you that your organization will have a reduction
in force (RIF) or layoff in the next few months?
- Connected Employees
- Disconnected Employees
While we don’t know why Disconnected Employees worry about RIFs more than Connected Employees, we can make some deductions. The lack of connection could make them feel less secure and trusting that their organization will communicate and manage the change effectively.
This sentiment is similar to the attitudes of Discouraged Employees in our 2022 Connections Study.
Key finding number 2:
Connected Employees
Feel More Supported
Amid Layoffs
Connected Employees say their organization supports them and takes deliberate action to build employee connections during a layoff. They also tend to have a more positive employee experience even when there are no layoffs.
How would you rate your organization’s efforts to maintain
employee connection and morale during the RIF or layoff?
- Connected Employees
- Disconnected Employees
Of those who experienced a RIF at their current organization, Connected Employees were significantly more likely than Disconnected Employees to say their organizations did a good job maintaining morale during the RIF process.
This finding suggests that when employees are connected, they’re likely to feel their organization is taking steps to do the right thing for their employees, similar to our 2022 study of Secure Employees.
How to Maintain Morale and
Connection When RIFs or
Layoffs Are on the Table
Connected and Disconnected Employees experience layoffs in different ways—but the disparity can be corrected. HR and internal communications teams can build trust during RIFs by working hard to maintain employee connection.
Number 1: Design internal communications to ease employee worries
Constant worry about the potential for layoffs can harm an employee’s mental health, productivity, and job satisfaction. However, if employees have fewer opportunities to be worried about layoffs, they may have an easier time turning that energy into more positive and productive emotions.
While there’s no magical remedy for easing employee worry, taking action with transparency, authenticity, and tempered optimism can go a long way in helping employees worry less, trust more, and have less distress during a period of layoffs.
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Encourage managers to hold regular one-on-one meetings with each direct report and allow time for frank discussion about layoff concerns.
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Conduct regular town hall and all-hands meetings to ensure information and updates are delivered consistently across the organization.
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Provide resources to help employees face their fears in a healthy way, like information sessions, coping and meditation apps, and counseling services.
Number 2: Create transparency around layoffs year-round
Honest and transparent communications are always essential—but especially during RIFs and layoffs. When you keep employees informed about the current state of the business and what may be on the horizon, it builds trust. And that paves the way for a better connection between employees and the organization as a whole.
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Notify employees about upcoming layoffs first, so they don’t find out in the news, via public WARN notices, or through the grapevine.
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Reinforce the importance of managers staying close to their people during times of uncertainty and stress through one-on-ones, team meetings, and informal team get-togethers.
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Be honest about the possibility of future layoffs, whether or not one has occurred.
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Recognize the additional stress managers experience during layoffs, and provide support and training to help them manage their team’s and their own emotions.
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Train managers in emotional intelligence and empathy, so they are equipped to discuss layoffs with their team and recognize and manage emotions like anger, “survivor’s guilt,” and RIF fatigue.
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Create safe spaces for honest conversations between leaders and employees through increasingly frequent all-hands, AMAs, coffee chats, and smaller gatherings.
Number 3: Boost employee connections before, during, and after layoffs
As discussed in the first installment of our 2023 research study, The Imbalanced State of Employee Connections at Work, most employees want to feel connected at work. During a period of layoffs, the need for connection may be even greater as employees struggle to make sense of changes happening in the organization. It’s at this time that HR and internal communications teams have an excellent opportunity to provide the information and support employees need to stay connected to their work and team.
The first step is articulating your intention to maintain a connected, heard, and supported workforce. Explain why the organization wants to build connection and what is being done to make it happen. By creating opportunities for employees to bond over shared experiences, the organization can help them connect with one another and build unity as a team.
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Promote Slack channels and chat groups where remote and onsite employees can discuss topics important to them.
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Plan team events both during and after work hours to foster camaraderie and strengthen team dynamics.
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Create cross-functional task forces to help employees expand their networks and learn from diverse perspectives and skill sets.
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Mentor through traditional and peer channels to enhance employee growth and development.
Approach Layoffs More
Successfully With the Power of
Employee Connection
While layoffs can be difficult for all involved, the subsequent worry and stress felt by remaining employees can be at least partially alleviated by the power of employee connection. Starting with the tools we’ve shared here, organizations can create experiences that help employees build deeper connections with their work, coworkers, manager, and others, and make meaningful strides in improving employee productivity, engagement, and overall well-being.
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More critical research findings and eye-opening results are ahead!
Supplemental reports on managers’ experiences and the role of total rewards to build connections are coming soon.
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About Ingenuity Design
We’re an Employee Experience agency that strengthens companies from the inside out. We advise and create value-driven employee experiences across the employee lifecycle to help make companies great places to work. We’re proud to work/have worked with eBay, TD Bank, Splunk, Visa, Gap Inc, and Thumbtack, to name a few.
About Audience Audit
Audience Audit helps marketing agencies build ROI and reputation based on original thought leadership research. Founded in 2009, the firm has conducted audience research for hundreds of agencies and their clients.