Dealing with layoff stress: How to stem survivor guilt and more

Layoffs are hard. They're tough for leaders, HR teams and the employees who lose their jobs. But they're also difficult for the people who stay.

You may have heard of layoff survivor guilt. That's what psychologists call the mindset of many people who keep their jobs, but end up feeling bad. Initial relief gives way to feelings of guilt, anger, fear, and anxiety. Fearful employees tend to be less productive. Their performance often suffers, too, so organizational impacts linger long after the layoffs occur.

Just because employees were spared in one round of layoffs doesn't mean they feel confident about their future. One recent survey showed that 37% of employees were worried about losing their job. Their fears seem justified. In January 2023 alone, tech companies cut more than 60,000 jobs.

Concerns about job security, taking on more work, or losing colleagues to layoffs add up to anxious, overwhelmed workforces. In fact, Kindly Human's research shows that nearly half of workers report feeling overwhelmed in the last year. A third said they have little or no support for dealing with those feelings.

Read more: Management training is key to Prudential's mental health strategy

Bottom line: workers who remain after layoffs need support, too. 

The ripple effects of layoffs
Work stressors in general are associated with increased absenteeism, tardiness and a desire to quit. Layoff survivor's guilt, anxiety and wondering, "Am I next?" all affect productivity.

A survey of 4,000 employees in companies that recently experienced job cuts found that 74% of workers who kept their jobs said their productivity has dropped since the layoffs. Another byproduct of layoffs is staff questioning if they're valued. They're working, but they're wondering where — and if — they fit into the organization's future.

Provide a pressure relief valve ASAP
Employees experiencing work-related pressures recognize the importance of having an outlet for their concerns. We found that 34% of employees identify the lack of "a way to vent frustrations" as a key workplace challenge.

The Centers for Disease Control and Prevention notes that relying on a network of friends and coworkers can "help to reduce the effects of stressful working conditions."

But well-meaning friends may not really understand what someone is going through in the aftermath of layoffs. Meanwhile, affected co-workers might not have the additional bandwidth to offer support. Third-party, trusted and empathetic peer support resources can fill the gap.

Many people prefer to talk to a peer — someone who "gets" them — as a starting point for offloading their worries. Peer support is a logical first step for employees to feel heard, understood and validated.

Read more:Reminding employees about their mental health benefits reduces stigma and improves engagement

Peer support can take many forms. Support groups run by trained peers, one-to-one conversations and online forums are all resources that can involve trained employees, or they can be outsourced. Employees may feel more comfortable talking candidly to people who work outside of their organization. The ability to speak freely without fear of repercussions is important for a population that may already feel scrutinized and on edge after a workforce shakeup.

And while many organizations offer employees a large and growing number of mental health resources, these solutions are often clinical pathways. Undoubtedly, these mental health benefits are important, but it's not uncommon for employees to think their issues don't rise to the level of needing therapy. They just want someone to talk to without stigma or privacy worries.

Preclinical peer support resources are typically available right away—no waiting for a therapist or counselor. Talking to an empathetic, trained peer listener is often all someone needs to relieve everyday concerns. Peer support is also less expensive than clinical care while providing clear benefits:97% of peer support users report feeling better after connecting with a professional peer, according to Kindly Human data. In addition, 74% of employees say their stress is lower and 63% feel less isolated after tapping into peer support services. 

Read more: CEOs are optimistic about the year ahead, despite layoffs

Build on existing resources
Peer support also can help increase use of valuable benefits the company already provides employees. Mental Health America estimates that only about 4% of U.S. employees use an employee assistance program (EAP) each year. After implementing peer support, global consultancy EY saw calls to its EAP increase by 45%. Another organization reduced their short and long-term sick leave due to mental health issues after introducing peer support.

A SHRM survey of 3,400 HR professionals found that 88% think mental health resources can increase productivity, boost ROI (78%) and retention (86%). Most respondents also said mental health resources convey compassion (94%) and can help prevent burnout (90%), which is always a concern after workloads shift due to job cuts.

So, while offering terminated employees assistance is critical, supporting the team that stays is an important part of a healthy workplace.

For the employees who survive layoffs, peer support offers a nonjudgmental space for people to vent, share their concerns and feel valued because someone is taking the time to listen to them. It's an easily accessible, proven way to bolster mental and emotional well-being, and a cost-effective preclinical path for helping employees feel better when they need it most.