Mitigate ‘Survivor Syndrome’: How to Support Workers After Layoffs

Decades of management research have demonstrated the consequences of poorly conducted workforce layoffs and reorganizations, including higher voluntary turnover, damage to the employer’s brand, and burnout and resentment among remaining employees.

To mitigate the negative effects of what is called “survivor syndrome,” HR professionals must take a proactive and empathetic approach to layoffs, said Scott Nostaja, senior vice president and national organizational effectiveness practice leader at Segal, a benefits and HR consulting firm in New York City.

Nostaja spoke with SHRM about how survivor syndrome affects employees, how to prevent or mitigate it, and how employers can maintain trust and engagement during and after workforce reductions.

SHRM: What is survivor syndrome, and what is its impact on individual, team, and company performance?

Nostaja: Survivor syndrome is a psychological phenomenon that occurs during significant organizational change, such as layoffs or restructuring. It affects individuals who remain at the organization after these big changes, often leading to feelings of guilt, anxiety, distrust in leadership, and decreased motivation, which can negatively impact team and organizational performance. Additionally, employees may experience increased stress due to the redistribution of workload, as tasks are often assigned to a smaller group of individuals, further exacerbating feelings of overwhelm.

SHRM: What steps can HR take to prevent or mitigate survivor syndrome after layoffs occur?

Nostaja: HR can take several steps to mitigate and lessen the impact on the remaining staff. These steps include:

• Establishing a clear and transparent communication strategy by proactively articulating the rationale behind layoffs or organizational changes, along with the potential consequences of not taking action.
• Collaborating with senior leaders to ensure transparency regarding timelines and processes. *Focusing on fairness, rather than favoritism.
• Providing access to employee assistance programs or mental health services to support all individuals impacted by the changes.
• Equipping managers with the necessary training and resources to effectively handle employee questions and manage the change process.

SHRM: How can employers maintain trust, morale, and engagement during and after workforce reduction?

Nostaja: Treat impacted employees with respect and support by offering services such as resume assistance, recruitment services, or upskilling opportunities for those transitioning roles. This demonstrates to remaining employees that the organization values its workforce, even in times of change.

Offer incentives to retain top talent. Provide retention bonuses for employees who stay for a designated period or give additional compensation for those taking on increased responsibilities after the change.

Maintain open and honest communication throughout the change process and beyond the change, including providing updates on the ways the layoffs or restructuring achieved the intended outcomes. Additionally, recognize any successes where appropriate.

Carefully manage the redistribution of work by evaluating and redesigning processes to optimize efficiency, while eliminating nonessential tasks to reduce unnecessary workload. Engage remaining employees in collaborative discussions to identify and implement solutions that support the organization’s long-term goals and ensure a fair distribution of responsibilities.