Structural Changes: How to Avoid Burning Bridges with Laid-Off Employees?

According to the latest Spinter survey, 7 out of 10 Lithuanians who faced layoffs last year associate the experience with anxiety, fear, stress, and insecurity. What can organizations do to prevent unpleasant experiences of former employees from turning into defamation in close circles or even in the public sphere? Is it possible to transform a layoff into a positive step in an employee’s career path?

“The labor market is a dynamic environment, and layoffs have become an inevitable aspect of the business world. Recently, mass layoffs in Lithuania have increased as organizations implement structural changes, saying goodbye to multiple employees within a short period. We notice that managers and HR specialists often lack the knowledge on how to support employees during farewells, especially when it involves an entire department or division. One of the most effective solutions in such situations is an outplacement program,” says Evelina Latyšovič, Head of Business Operations at the Lithuanian division of the global HR solutions company ManpowerGroup.

Structured Talent Wellbeing Support

According to E. Latyšovič, the outplacement program offers both practical and emotional support for employees undergoing career transitions. It is important to provide a structured approach to layoffs with specific solutions to help employees transition from one workplace to another and manage the emotions they experience, so these feelings do not adversely affect their personal life or career.

“Losing a job is never easy, and we naturally experience a range of emotions during that time. Research shows, for example, that individuals aged 26-35 feel the most insecure. They are planning their future, looking to build families, buying real estate, and aiming to solidify their careers, so job loss brings a sense of uncertainty and insecurity. Interestingly, women who lose their jobs often feel sadness, while men more commonly experience anger. Everyone’s emotions and needs differ, which is why addressing them during changes is crucial. This is what the outplacement program provides,” E. Latyšovič explains.

This program involves sessions that make employees feel increasingly prepared for career shifts, the job search process, and returning to the labor market.

E. Latyšovič notes that the primary component of the outplacement program is supporting departing talent: “Everything is individualized. Together with each program participant, we set a personal goal and create a clear action plan to achieve it. The plan covers topics from self-awareness to job interview simulations, ensuring that departing employees feel prepared for their next career steps. This method proves effective – we calculate that as much as 80% of our outplacement program participants achieve their set goal within six months,” E. Latyšovič says.

Preserving and Enhancing Organizational Reputation

The emotions experienced during layoffs can lead to negative reviews about the organization. Often, these not-so-pleasant experiences are shared with close ones or with colleagues at a new workplace, but sometimes they are also posted publicly, for example, on social media. This inevitably impacts the organization’s image.

According to E. Latyšovič, an outplacement program not only supports but also enhances the employer’s image during organizational or other structural changes:

“The outplacement program helps maintain good relationships with departing employees, who may later become clients or even business partners of the company. They may also want to return to the same organization or another role in the future. Therefore, a well-executed outplacement program demonstrates that the organization values its employees as talents worth investing in, caring for their career journey from beginning to end.”

How to Support the Survivors?

Mass layoffs due to structural changes affect not only those being laid off but also the employees who remain in the organization, E. Latyšovič notes.

“The impact of layoffs does not end with those laid off. Remaining employees are also strongly affected by the reduction in workforce, impacting their emotional and physical health. Studies show that after mass layoffs, the motivation of remaining employees decreases, and they often feel overworked and burned out due to increased workload. Some employees also feel guilt for keeping their jobs when others did not. The number of employees who recommend their company as a good workplace also declines.”

E. Latyšovič explains that the outplacement program also addresses the loyalty of the remaining employees:

“During structural changes, it is essential to properly inform not only the employees who are leaving but also those staying in the organization. They may experience various feelings at the time, from anger, stress, and distrust to guilt or jealousy. Therefore, the outplacement program includes topics that help not only to plan the career path for the departing employees but also advise organizations on how to communicate with the employees who remain,” says E. Latyšovič.

She highlights four critical aspects that should be emphasized: clear, positive, and frequent communication, feedback gathering, opportunities for employee reskilling and upskilling, and more focus on nurturing organizational culture and shared activities to foster a sense of belonging to the organization’s culture.