It goes without saying that layoffs can be a harsh reality of the modern business landscape. These past two years have been particularly brutal in many job sectors, including tech. Many will make the case that layoffs are necessary for the financial health of a company, but the ripple effects on employees' mental health can be profound and far-reaching. In this blog post, I want to talk about the way that layoffs can create or exacerbate burnout for both employees who are laid off and those who remain.
Let me start by sharing a story of one of my clients, Sarah. Sarah had been leading teams at a tech company for eight years. Her dedication and hard work were well recognized, and she was the last person to expect a layoff. When the news came, it was a shock. Despite the personal blow, Sarah felt an overwhelming need to support the team she left behind, even though it wasn't her responsibility. She saw firsthand that the company wasn't providing the necessary help to those still there. Her burnout levels had already been climbing before the layoffs, but now, from her position of being laid off and searching for a job, burnout took on a whole new meaning.
Laid Off?
For those of you who have found yourselves suddenly without a job, I know how devastating the impact can be. The loss of income is just one part of the equation. More profoundly, layoffs often lead to a loss of identity, purpose, and community. The psychological effects can be severe. Many of you may experience heightened levels of stress and anxiety due to the uncertainty of finding new employment and the financial strain that comes with it. Feelings of rejection and failure can contribute to depression, and the abrupt end of a routine and the loss of social connections at work often exacerbate these feelings. Ironically, the period after being laid off can also lead to burnout, as individuals may push themselves relentlessly in job hunting, upskilling, or taking on any available work to make ends meet.
Sarah experienced all of this. She felt an intense pressure to quickly find another job, to prove to herself and others that she could bounce back. The burnout she felt was unlike anything she had experienced before.
Left Behind?
For those of you who have remained after a round of layoffs, the mental health challenges can be just as significant. Known as "survivor's syndrome," the experience can be emotionally taxing. You might feel guilty for still having your job while your colleagues do not, leading to emotional distress. Additionally, the work of laid-off employees is often distributed among those who remain, leading to increased workload and pressure, which can result in an increase in the likelihood of burnout. The fear of future layoffs and the uncertainty about the stability of your own position can cause ongoing stress and anxiety. Witnessing the departure of colleagues and the breakdown of teams can significantly impact morale, leading to disengagement and reduced productivity.
Companies…You are Not Off the Hook
The way a company handles layoffs can make a significant difference in the mental health outcomes for all employees. So many executives spin tales rather than just telling the truth, and it is very rare that they take REAL BLAME for the mishandling of strategy and money. Claims of “market realities” and “need for more efficient growth” are just buzzwords that mean nothing in the ears of those whose lives you are impacting. So first be a LEADER and tell the damn truth!
Clear, transparent communication about the reasons for layoffs and the process involved can help manage anxiety and reduce uncertainty. Treating laid-off employees with dignity and respect, providing adequate notice, and offering support services such as career counseling and severance packages are crucial.
Companies should not overlook the needs of remaining employees either. Providing mental health support, managing workloads to prevent burnout, and fostering an open environment where employees can express their concerns are essential steps. Post-layoff, many CEOs and leaders start using phrases like “they should be glad they have a job,” which is neither kind nor necessary.
My only answer to that…DO BETTER!
Coaching in the Aftermath
Navigating the aftermath of layoffs is challenging for both laid-off and retained employees. Through coaching, Sarah managed to process her experience, rebuild her confidence, and find a new path forward. Coaching helped her regain her footing, focus on her strengths, and develop a new strategy for her career.
Until Part 3, take care of yourself and those you care about.
Leah