The Immediate Impact of Layoffs on Employee Experience & Company Performance.

Culture First with Damon Klotz

This is the first part of a two-part series on layoffs and their impact on the employee experience. The episode focuses on the immediate impact of layoffs, based on research conducted by Culture Amp. The research analyzed data from layoffs in the tech sector between March 2020 and December 2023, including over 3,300 layoff events by 2,400 companies.

The conversation explores the impact of layoffs on employee engagement and the employee experience. It discusses the decline in engagement levels after layoffs, particularly in trust, pride, and commitment. It also highlights the importance of leadership communication and development opportunities in mitigating the negative effects of layoffs. The conversation debunks the myth that doing one large layoff is better than multiple smaller layoffs and emphasizes the role of managers in supporting employees during this challenging time.

The episode concludes by discussing alternative strategies to layoffs and the importance of treating employees with decency and humanity throughout the process.

Chapters

03:40 - Research Methodology and Data Set

07:08 - Immediate Impact on Employee Engagement

13:55 - Decline in Commitment and Confidence

20:34 - Importance of Transparent Communication

23:22 - The Role of Leadership Communication and Development Opportunities

27:45 - Debunking the Myth of One Large Layoff Being Better

33:46 - The Importance of Managers in Supporting Employees

38:24 - Exploring Alternative Strategies to Layoffs

Articles mentioned in this episode:

Business Insider - A better way to handle layoffs

Axios - Employers are "afraid" to conduct layoffs in viral video era

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